Hinterland Metals Inc.
TSX VENTURE : HMI

Hinterland Metals Inc.

December 30, 2010 08:13 ET

Hinterland Closes First Tranche of Private Placement for $1,075,000

VAL D'OR, QUEBEC--(Marketwire - Dec. 30, 2010) -

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S NEWS WIRE SERVICES

Hinterland Metals Inc. (TSX VENTURE:HMI) is pleased to announce that it has closed the first tranche of a non-brokered private placement through the issuance of 5,400,000 units at a purchase price of $0.125 per unit for gross proceeds of $675,000 with each unit consisting of one common share and one share purchase warrant, and 3,200,000 million flow-through units at a purchase price of $0.125 per flow-through unit for gross proceeds of $400,000 with each flow-through unit consisting of one flow-through common share and a one-half share purchase warrant. Each warrant will entitle the holder to purchase one non-flow-through common share at a price of $0.15 per share until December 29, 2011.

The securities sold under the private placement were issued pursuant to exemptions from the prospectus and registration requirements of applicable securities laws, subject to the receipt of necessary regulatory approvals and to a four month hold period ending on April 30, 2011. The proceeds from the private placement will be used by Hinterland for general working capital and to conduct exploration work on its properties.

A cash commission of $86,825 was paid by Hinterland to a registered agent as consideration for arranging the private placement. Hinterland also issued 820,000 non-transferable agent's options that entitle the agent to purchase units at a price of $0.125 per agent's unit December 29, 2011. Each agent's unit consists of one common share and one common share purchase warrant that entitles the agent to purchase one additional common share at a price of $0.15 until December 29, 2011.

Hinterland's securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold in the United States or to "U.S. persons", as such term is defined in Regulation S promulgated under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements.

This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.

Shares Issued 78,609,223

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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