Hornby Bay Mineral Exploration Ltd.

Hornby Bay Mineral Exploration Ltd.

October 15, 2010 14:44 ET

Hornby Bay Announces Closing of Rights Offering

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2010) - Hornby Bay Mineral Exploration Ltd. (the "Company") (TSX VENTURE:HBE) announces that it has completed its previously announced rights offering (the "Rights Offering"). At closing, the Company issued an aggregate of 8,346,820 flow through common shares (the "Flow Through Shares") for gross proceeds of $1,335,491. The Flow Through Shares were issued to persons who exercised rights issued under the Rights Offering, as described in the rights offering circular of the Company dated July 26, 2010. Solicitation fees in the aggregate amount of $82,727.98 were paid to registered dealers whose name appeared on a rights certificate representing rights surrendered for exercise.

Pursuant to the terms of a standby commitment with PI Financial Corp. ("PI") and Jones, Gable & Company Limited ("Jones Gable"), the Company issued an aggregate of 710,500 broker warrants (the "Broker Warrants") to PI and Jones. Each Broker Warrant entitles the holder thereof to acquire a common shares of the Company at a price of $0.16 per share for a period of two years. 

Proceeds of the Offering will be used to fund an exploration program on the Company's 40 mineral leases and 16 mining claims located in Coppermine river, Nunavut and for general working capital needs.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Shares Outstanding: 56,785,150

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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