Full Metal Minerals Ltd.
TSX VENTURE : FMM

Full Metal Minerals Ltd.

October 23, 2006 19:54 ET

Full Metal Minerals Announces $4.0 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 23, 2006) -

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 entered into a financing agreement with Canaccord Adams (the "Agent") for the private placement, on a commercially reasonable efforts basis, of up to 1,750,000 Units at a price of $2.30 per Unit for a gross proceeds of $4,025,000. Each Unit is comprised of one common share and one-half of one transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $3.00 per share for a period of 24 months following the closing of the financing. The Company has also granted the Agent an over-allotment option to increase the offering by up to 250,000 Units at any time prior to closing.

As consideration for acting as Agent, the Company has agreed to pay a commission of 7.5% of the total proceeds on closing in cash or Units at the Agent's option, and issue Agent's warrants exercisable for common shares of the Company equal to 10% of the number of Units sold in the offering, at an exercise price of $2.50 per share for a period of 24 months.

The Company intends to use the net proceeds from the offering to advance the Company's exploration properties and for general working capital purposes.

ON BEHALF OF THE BOARD OF DIRECTORS

Michael Williams, President and Director


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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