Hornby Bay Exploration Limited

Hornby Bay Exploration Limited

March 04, 2005 12:51 ET

Hornby Bay Exploration Announces $2.5 Million Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HORNBY BAY EXPLORATION LIMITED

TSX VENTURE SYMBOL: HBE

MARCH 4, 2005 - 12:51 ET

Hornby Bay Exploration Announces $2.5 Million Bought
Deal Financing

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY
FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF
U.S. SECURITIES LAW

Hornby Bay Exploration Limited (TSX VENTURE:HBE) confirms an agreement
with Desjardins Securities Inc. to raise $2.5 million on a bought deal
basis consisting of a private placement of 2,778,000 flow-through common
shares at a price of $0.90 per share.

Desjardins Securities has also been granted an underwriter's option to
place, prior to closing, up to an additional 2,000,000 flow-through
common shares at a price of $0.90 per share for further gross proceeds
of approximately $1.8 million, which would increase the offering to
approximately $4.3 million.

Closing of the transaction is expected to occur on or about March 22,
2005 and is subject to normal regulatory approvals.

The proceeds of this private placement will be used by the company to
fund its $7 million April-September 2005 uranium exploration program on
its 100% owned Coppermine River and Asiak River properties in the Hornby
Bay Basin, Coronation Gulf area, western Nunavut.

The securities being offered by Hornby Bay have not been, nor will be,
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States or to U.S. persons
absent registration or applicable exemption from the registration
requirement of such Act. This release does not constitute an offer for
sale of common shares in the U.S. and any public offering of common
shares in the U.S. will be made by means of a prospectus.

Shares Outstanding March 2, 2005: 70,188,697

Close March 3, 2005: $0.77

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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.