Iron Lake Minerals Inc.
NEX BOARD : ILM.H

April 03, 2006 16:33 ET

Iron Lake Minerals Inc. Announces Closing of Special Warrant Offering of Alturas Minerals Corp.

PENETANG, ONTARIO--(CCNMatthews - April 3, 2006) -

This news release is not for distribution to U.S. newswire services or for dissemination in the United States.

IRON LAKE MINERALS INC. ("ILM" or the "Company") (NEX:ILM.H), further to its announcements of March 8 and March 28, 2006 with respect to the proposed amalgamation (the "Amalgamation") of a wholly owned subsidiary of the Company and Alturas Minerals Corp. ("Alturas") and the concurrent financing of Alturas through a brokered private placement offering (the "Offering") of special warrants (the "Special Warrants") of Alturas, is pleased to announce that the Offering closed on March 31, 2006 with funds in escrow pending completion of the Amalgamation, raising aggregate gross proceeds of $6,993,430.13 through the sale of 32,527,582 Special Warrants. Paradigm Capital Inc. ("Paradigm"), along with Dundee Securities Corporation, acted as agents ("Agents") for the Offering. The Offering was fully subscribed, with Alturas and the Agents agreeing to increase the Agents' previously announced $2,000,000 option to $2,993,430.13.

Proceeds of the Offering will be used for the exploration of the Peruvian gold and copper-gold properties held by Alturas and for working capital purposes.

Each Special Warrant will be exchanged for one special warrant of ILM (the "New Alturas Special Warrants") upon completion of the Amalgamation and name change of ILM to "Alturas Minerals Corp." (following the Amalgamation and the name change, "New Alturas"). Each New Alturas Special Warrant will be immediately exercisable, for no additional consideration, for one unit (a "Unit") of New Alturas, with each Unit comprised of one common share (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant") of New Alturas. Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $0.25 for a period of two years from the date of issue.

The Company and Alturas expect to close the Amalgamation and related transactions (including the change of name to "Alturas Minerals Corp.", the exchange of the Special Warrants for New Alturas Special Warrants and the exercise thereof for Units of New Alturas) on April 5, 2006. Subject to the final listing approval of the TSX Venture Exchange ("TSXVE"), the Company expects that its shares will begin trading on Tier 2 of the TSXVE on Friday, March 7 under the symbol "ALT".

The Company further announces that in connection with the approval process of the Amalgamation and related transactions, it has filed a Filing Statement on TSXVE Form 3B2, which is available at www.SEDAR.com. The Company would like to confirm that all shares to be received by Dr. Laurence Curtis in exchange for 20,000 Alturas shares he currently holds will be subject to escrow. ILM and Alturas have each received shareholder approval from their respective shareholders for the Amalgamation and the related transactions, including the continuance of the Company under the Canada Business Corporations Act (which was completed effective March 30, 2006) and the one for up to three consolidation of the issued and outstanding shares of the Company. The Offering and the completion of the Amalgamation and related transactions is subject to final approval by the TSXVE and all applicable regulatory agencies.

About Alturas Minerals Corp. and Iron Lake Minerals Inc.

Alturas is a Canadian corporation and is the parent company of Alturas Minerals S.A. ("Alturas Peru"), which is indirectly owned by Alturas through its wholly-owned subsidiaries. Alturas Peru is an exploration company that has been actively exploring various mineral projects in Peru since its incorporation in January 2004. Alturas' strategic objective is to expand its operations from exploration to development, produce cash flow to sustain further exploration, and maximize shareholder returns through capital appreciation. The principal assets of Alturas are four mineral exploration projects located in southern Peru, being the Huilacollo Gold Project, the Banos del Indio Gold Project, the Utupara Copper-Gold Project and the Huajoto Gold-Silver-Zinc Project. Each of the four principal mineral exploration projects of the Company have been the subject of at least preliminary drill testing in the past by other parties. Alturas has undertaken limited exploration work on these four projects to date, including the compilation of historical exploration data and reviewing of geological mapping completed by third parties. In addition, Alturas has interests in seven other exploration projects in Peru. Alturas' exploration strategy is focused on the discovery of large epithermal gold mineralized deposits. Please see the preliminary prospectus of Alturas dated June 8, 2005 at www.SEDAR.com for additional information in respect of the business, assets and operations of Alturas.

ILM is an Alberta corporation engaged in the business of acquiring, exploring and developing mineral properties in Canada. ILM currently holds a 100% interest in the mineral rights of twelve unpatented claims (21 contiguous unpatented claim units) located in the Duffell Lake Area, Patricia Mining Division, Ontario, Canada (the "Duffell Lake Property"). Previous exploration conducted on the Duffell Lake Property has focused on gold mineralization in the sulphidized oxide facies iron formation, sulphide-mineralized tuffaceous volcanics and quartz vein stockworks. These exploration activities have delineated the presence of gold mineralization. Mineralization discovered to date is sub-economic, however the zones discovered have been tested only to vertical depths of approximately 70 meters. The Company has drilled 14 diamond drill holes on the Duffell Lake Property to date. Previous geophysics performed on the Duffell Lake Property appears to have adequately delineated the target conductors. ILM has not yet established whether the Duffel Lake Property contains mineral resources that are economically recoverable.

Forward-Looking Statements

This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to complete the propose financing, failure to obtain necessary regulatory or shareholder approvals, exploration and other risks factors beyond its control and actual results may differ materially from the expected results.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Shares Outstanding: 16,630,000

The NEX and the TSXVE do not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Iron Lake Minerals Inc.
    Deborah J. Bazinet
    President
    (705) 533-3430
    (705) 533-1521 (FAX)
    or
    Alturas Minerals Corp.
    Miguel Cardozo
    President
    (416) 856-6875