Huldra Silver Inc.
TSX VENTURE : HDA

Huldra Silver Inc.

May 24, 2012 09:00 ET

Huldra Silver Announces Drawdown of Fourth Tranche of Credit Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - Huldra Silver Inc. (TSX VENTURE:HDA) (the "Company" or "Huldra") announces that it has completed the drawdown of the fourth tranche of the $10 million credit facility entered into with Waterton Global Value, L.P. ("Waterton") in June 2011. The principal amount of the fourth tranche is $2.5 million. The Company has now drawn down the full $10 million of the credit facility. In connection with the drawdown of the fourth tranche, the Company issued Waterton 1 million warrants, each entitling Waterton to acquire one common share of the Company at a price of $1.30 per share until May 22, 2017. The Company has also agreed to pay a placement fee in connection with the drawdown, consisting of a cash payment of $25,000 and the issuance of an aggregate of 38,462 common shares.

The Company intends to use the proceeds of the fourth tranche for working capital and to advance its Treasure Mountain Property towards production.

All securities issued by the Company in connection with the drawdown of the fourth tranche are subject to a hold period of four months and one day under applicable Canadian securities laws.

About Huldra

Huldra is currently working on plans to put its Treasure Mountain Mine, located 3 hours east of Vancouver, BC, into development, subject to permitting and financing, utilizing a mill being constructed at the Company's mill property outside of Merritt, BC. The Company currently employs more than 60 people between the two properties. The Company is also actively assessing other opportunities for acquisition and development.

On behalf of the Board of Directors

Ryan Sharp, MBA, President, CEO & Director

Disclaimer for Forward-Looking Information

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events related to the Company's plans to put the Treasure Mountain Property into production. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as the Company's ability to finance its planned exploration and production; the Company's ability to source the necessary infrastructure to effect its production plans; current economic conditions and the state of mineral exploration and mineral prices in general. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. The Company can offer no assurance that its exploration and development plans will be completed in the time expected or at all. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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