Hornby Bay Exploration Limited

Hornby Bay Exploration Limited

February 24, 2005 16:33 ET

Hornby Bay Announces $4.9 Million Flow-Through Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HORNBY BAY EXPLORATION LIMITED

TSX VENTURE SYMBOL: HBE

FEBRUARY 24, 2005 - 16:33 ET

Hornby Bay Announces $4.9 Million Flow-Through Private
Placement

TORONTO, ONTARIO--(CCNMatthews - Feb. 24, 2005) - Hornby Bay Exploration
Limited (TSX VENTURE:HBE) has agreed to issue, on a private placement
basis, up to 4,700,000 flow-through common shares at a price of $1.05
per share for gross proceeds of approximately $4.9 million. Desjardins
Securities Inc. will act as agent for the private placement on a best
efforts basis.

Hornby Bay Exploration will pay Desjardins Securities Inc. a cash fee
equal to 7% of the gross proceeds and will issue compensation options
equal to 7% of the total number of securities sold under the offering.
Each compensation option will be exercisable at a price of $1.15 for one
common share and will have a term expiring twelve months from the
closing date.

The proceeds of this private placement will be used by the company to
fund its $7 million April-September 2005 uranium exploration program on
the Coppermine River and Asiak River properties in the Hornby Bay Basin,
Coronation Gulf area, western Nunavut.

The private placement is subject to regulatory approval.

Hornby Bay Exploration is a mineral exploration company focused on
uranium and holds a 100% interest in 214 mineral claims covering 210,600
hectares (520,400 acres) in western Nunavut, Canada.

Shares Outstanding: 69,418,373

Close: February 24, 2005: $0.93

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Hornby Bay Exploration Limited
    George Bell
    President & CEO
    (416) 368-0114
    (416) 368-0198 (FAX)
    or
    Hornby Bay Exploration Limited
    Jennifer Smith
    VP Finance & CFO
    (416) 368-0114
    (416) 368-0198 (FAX)
    www.hornbybay.com
    THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
    CONTENTS OF THIS RELEASE.