Inspiration Mining Corporation
TSX : ISM
FRANKFURT : OI8

Inspiration Mining Corporation

February 02, 2011 13:15 ET

Inspiration Mining Provides Update on Ursa Major Matter

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2011) - Inspiration Mining Corporation ("Inspiration" or the "Corporation") (TSX:ISM)(FRANKFURT:OI8) would like to provide an update with respect to its efforts to prevent the unnecessary dilution of the shareholdings of the Ursa Major Minerals Incorporated ("Ursa") shareholders.

As reported in Ursa's press release dated January 31, 2011, the TSX allowed Ursa to proceed with its private placement without first obtaining approval of the Ursa shareholders. In response, the Corporation filed a Notice of Application with the Ontario Superior Court of Justice requesting that the Court issue the following orders:

(i) an order prohibiting Ursa from proceeding with the private placement until such time that Ursa obtains disinterested shareholder approval for the private placement;

(ii) an order prohibiting the placees under the private placement from voting at the upcoming shareholders' meeting; and

(iii) an order that the private placement be reversed and canceled.

A hearing date of March 1, 2011 has been set to hear arguments on the Corporation's application.

Randy Miller, the Chief Executive Officer of Inspiration, stated: "We are disappointed that the private placement was allowed to proceed without Ursa first obtaining shareholder approval. We are asking the Court to recognize and uphold the existing shareholders rights to voice their displeasure or agreement with the current management of Ursa at the upcoming shareholders' meeting without the inclusion of new shareholders brought in by management of Ursa. This is an issue of governance and protecting shareholder rights. We encourage all Ursa shareholders to express their opinion on the private placement by contacting Inspiration at randy@inspirationmining.com so that their voice can be heard by the Court on March 1, 2011."

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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