HMZ Metals Inc.

HMZ Metals Inc.

December 15, 2006 12:49 ET

HMZ Announces Closing, Provides Corporate Update

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2006) - HMZ Metals Inc. ("HMZ" or the "Company") (TSX:HMZ) provides its bi-weekly update pursuant to the Management Cease Trade Order announced April 18, 2006.

The Company announced that it raised an additional $180,000 pursuant to a second Closing of its previously announced $600,000 non-brokered Unit private placement for total gross proceeds of $485,000. The Units were priced at $0.05 each and consist of one common share and one-half common share purchase warrant exercisable at $0.10 per common share for the first twelve months after Closing and exercisable at $0.15 per common share during the second twelve months after Closing.

A finders fee equal to 8% of cash raised and warrants to purchase common shares equal to 10% of the number of Units placed was payable under the Offering in connection with broker-originated orders only for a total of $8,000 and 220,000 Warrants. Proceeds from the financing will be used to fund working capital requirements as well as due diligence costs associated with the review of new project opportunities.

The Company also announced that work on its 2005 annual audited financial statements is well advanced and the Company plans to file same in January 2007. The Company anticipates filing quarterly financial statements for 2006 calendar year shortly thereafter and plans to file its 2006 audited financial statements on or before March 31, 2007 as required under applicable regulations.

On its recent trip to China, the Company's current joint venture partner (Hechi Industrial Co. Ltd. and its representatives) continued to be unwilling to fulfill its duties and obligations under the Company's Cooperative Joint Venture agreement. Management is actively pursuing legal and other remedies available to it in China and Canada. A multi-faceted action plan will be finalized shortly.

Due diligence reviews on several potential new projects in China continue and is focused on production and near-production assets. The Company looks forward to combining its western mining expertise, project finance and public company administration experience with strong local partners and establishing long term business relationships based on energy efficient and environmentally friendly development practices. The Company continues to explore mining opportunities outside of China.

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