Franconia Minerals Corporation

Franconia Minerals Corporation

March 29, 2005 11:30 ET

Franconia Minerals Corporation Completes Closing of Brokered Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FRANCONIA MINERALS CORPORATION

TSX VENTURE SYMBOL: FRA

MARCH 29, 2005 - 11:30 ET

Franconia Minerals Corporation Completes Closing of
Brokered Private Placement

SPOKANE, WASHINGTON--(CCNMatthews - March 29, 2005) - THIS PRESS
RELEASE, REQUIRED BY APPLICABLE U.K. AND CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES
DESCRIBED HEREIN.

FRANCONIA MINERALS CORPORATION (TSX VENTURE:FRA)(OFEX:FRA) (the
"Corporation") is pleased to announce that on March 23, 2005 it
completed the closing of its previously announced brokered private
placement by issuing 3,900,000 units for gross proceeds of
Cdn$1,560,000. Each unit was priced at CDN$0.40 and consists of one
common share of the Corporation and one-half of one common share
purchase warrant. Each whole warrant entitles the holder thereof to
purchase one common share at a price of Cdn$0.60 at any time prior to
5:00 p.m. Toronto time on the earlier of: a) 15 trading days after
receiving notice from the Corporation that the weighted average price of
the Common Shares has been equal to or greater than Cdn$0.70 for a
period of 15 consecutive trading days; and, b) March 23, 2007. Max
Capital Markets Ltd. ("Max Capital") acted as agent in respect of the
offering and received a commission of 7% of the gross proceeds of the
offering and an option to acquire 390,000 units at the offering price
per unit for a period of 12 months from the closing. The securities
issued pursuant to the private placement will have a four-month hold
period. Following completion of this offering, the Corporation has
22,064,108 shares issued and outstanding.

The net proceeds from the offering will be used for exploration on the
Corporation's Birch Lake Project, continued exploration on the
Corporation's San Francisco Project and for general corporate purposes.

Franconia's property portfolio consists of the Birch Lake property in
the Duluth Complex of Minnesota which contains an inferred
platinum-group metal-copper-nickel resource (according to a NI 43-101
compliant audit of a resource estimate recently completed by Roscoe
Postle Associates of Toronto); the San Francisco property, a high-grade
zinc exploration target in the western US (up to 55ft of 19% Zn in
limited previous drilling); the Mahoney property, a high-grade zinc
target in New Mexico; and platinum-palladium targets in the Duluth
Complex of Minnesota. Franconia currently has exploration agreements
with Teck Cominco American Inc. and Impala Platinum Holdings. (For
additional information see www.franconiaminerals.com.)

Franconia Minerals Corporation is an Alberta corporation trading on the
OFEX in London and the TSX-V in Canada under the symbol FRA. The
directors of Franconia Minerals Corporation accept responsibility for
this announcement.



FRANCONIA MINERALS CORPORATION

Brian Gavin
President


Franconia Minerals Corporation
111 E. Magnesium Road, Suite A
Spokane, WA 99208

Lion Capital Corporation Ltd.
4th Floor, 2 Cromwell Place
London SW7 2JE, UK


This document, which has been issued by Franconia Minerals Corporation
(Franconia), has been approved solely for the purposes of Section 21 of
the Financial Services and Markets Act 2000, by Lion Capital Corporation
Limited (Lion), 4th Floor, 2 Cromwell Place, London SW7 2JE, who is
authorised to carry on Investment Business by the Financial Services
Authority. Lion, is acting as advisers for Franconia and to no-one else
and will not be responsible to anyone other than Franconia for providing
protections afforded to customers of Lion for providing advice in
relation to any investment made pursuant to this announcement and makes
no recommendation for the suitability of any investment, which is the
subject of this announcement. FORWARD-LOOKING STATEMENT: Although
Franconia Minerals Corporation believes many of its properties have
promising potential, its properties are in the early stages of
exploration. None have yet been shown to contain proven or probable
mineral reserves. There can be no assurance that such reserves will be
identified on any property, or that, if identified, any mineralization
may be economically extracted. Incorporated in Alberta Canada No.
207953670.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Franconia Minerals Corporation
    Brian Gavin
    +1 509 340-1328
    +1 509 696-9680 (FAX)
    franconia@franconiaminerals.com
    www.franconiaminerals.com
    or
    Lion Capital Corporation Ltd.
    Colin Bird
    +44 (0)207 581 4477
    +44 (0)207 589 7806 (FAX)
    cbird@lionmining.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE