Full Metal Minerals Ltd.

Full Metal Minerals Ltd.

October 07, 2005 10:09 ET

Full Metal Minerals Announces $2.5 Million Bought Deal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 7, 2005) -

Not for dissemination in the United States or through U.S. newswires

Full Metal Minerals Ltd. (TSX VENTURE:FMM) is pleased to announce that it has agreed to a $2.5 million bought deal underwritten private placement financing with Canaccord Capital Corporation (the "Underwriter"). Full Metal will issue an aggregate of 3,125,000 units at a price of $0.80 per unit pursuant to the financing, each unit comprised of one common share and one-half of one transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of $1.00 for a period of two years following the closing of the financing. The warrants will be subject to acceleration during the second year of their terms in the event that the closing price of Full Metal's common shares is $1.50 or more for a period of 20 consecutive trading days.

The Underwriter has an over-allotment option to purchase up to an additional 625,000 Units prior to the closing date of the financing.

In consideration for the services of the Underwriter, the Underwriter will receive a cash commission of 7.5% (one-half of which may be paid in units on the same terms as the financing units above, at the election of the Underwriter), Underwriter's warrants exercisable for common shares equal to 10% of the number of units sold in the financing at a price of $0.85 per share for a period of 18 months and corporate finance units comprised of one common share and one share purchase warrant (containing the same terms as the financing warrants above).

Full Metal also announces a $400,000 non-brokered private placement financing to be completed concurrently with the brokered financing. Full Metal will issue up to 500,000 units at a price of $0.80 per unit pursuant to the non-brokered financing, the units containing the same terms as the brokered financing units above. No commissions or finders fees are payable on the non-brokered private placement financing.

The net proceeds from the offerings will be used to advance the exploration of the 100% owned Lucky Shot Gold Project in Alaska and for general working capital purposes. Full Metal recently made a new high grade gold discovery at its 100% owned Lucky Shot Property and is awaiting assays on the Ganes Creek gold property funded by Joint Venture Partner, Fury Explorations Ltd. The Company is exploring the Aleutian Island land package with Metallica Resources and is advancing the Pebble South Copper/Gold property.


"Michael Williams"

Michael Williams

President and Director

Suite 1500, 409 Granville Street, Vancouver, BC V6C 1T2

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