URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

September 22, 2005 13:04 ET

ISS Canada Recommends Shareholders Vote 'For' URSA Major Minerals' Proposed Option and Joint Venture Agreement With North American Palladium Ltd.-Lac des Iles Mines Ltd.

TORONTO, ONTARIO--(CCNMatthews - Sept. 22, 2005) -

This press release is not for distribution to any U.S. news wire service or for dissemination in the United States.

URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX VENTURE:UMJ) announces that ISS Canada, Canada's leading independent authority on proxy voting and corporate governance, is recommending that its clients, including institutional investment firms, mutual funds and other fiduciaries VOTE FOR THE PROPOSED OPTION AND JOINT VENTURE AGREEMENT WITH NORTH AMERICAN PALLADIUM LTD.-LAC DES ILES MINES LTD. (NAP-LDI).

URSA Major's meeting will be held on September 29, 2005 for the purpose of obtaining shareholder approval for the option and joint venture agreement with NAP-LDI on the Shakespeare nickel, copper, platinum metal deposit located near Sudbury, Ontario. URSA Major considers the agreement to be a very positive transaction for our shareholders, primarily because if the option is exercised, URSA Major will have financing arranged through to production with a 40% interest in the NAP-LDI joint venture. The agreement also provides for a substantial $1.5 million cash option payment. URSA Major's board of directors unanimously recommend that shareholders vote in favour of the NAP-LDI agreement which was approved by the TSX Venture Exchange on July 22, 2005.

ISS Canada concluded that the primary benefits of this agreement are as follows:

"1) Given the size of the company ... the probability of obtaining financing of $50 million plus on its own is extremely low.

2) This arrangement facilitates the acceleration of the project to commercial production, which is key, given the currently high base metal prices. Current prices of nickel and copper are over 50 percent of the long term pricing we utilised in our valuation models indicating that earlier production commences, higher the NPV of the project.

3) The other avenue to develop the property to production would be the issuance of shares .... Given the relative sizes of the company and the initial capital outlay this would result in substantial dilution to existing shareholders.

4) It is likely that with the future expenditure to be incurred on the project the company's interest in the property would grow to a full 100 percent (still subject to the 1.5 percent net smelter returns to Falconbridge). This means that the company would have a post-arrangement holding of 40 percent on the project."

In making its recommendation ISS Canada reported: "...On account of the clear per share NAV accretion arising from the agreement and the aforementioned benefits, we opt to support this resolution."

Dr. Richard Sutcliffe, President & CEO of URSA Major noted that, "after a consultation and evaluation by ISS Canada we are very pleased that they see the value in the agreement with NAP. We will continue to strive towards increased shareholder value, while meeting high levels of corporate governance."

YOUR VOTE IS IMPORTANT

THE BOARD OF URSA MAJOR UNANIMOUSLY RECOMMENDS THAT YOU VOTE FOR THE NAP/LDI OPTION AND JOINT VENTURE AGREEMENT. VOTE THE MANAGEMENT PROXY.

If you have already voted in favour of the resolution approving the NAP/LDI option and joint venture agreement, then we thank you for your vote and no further action is required on your part.

If you have not previously voted, please act quickly for your vote to count. Send your proxy by fax to Equity Transfer Services Inc. at 416-361-0470 or deliver to Equity Transfer Services Inc., Suite 420, 120 Adelaide Street West, Toronto, Ontario, M5H 4C3. Proxies must be received by Equity Transfer Services Inc. before 4:30 pm on Tuesday, September 27, 2005.

A dissident proxy circular has been prepared by Northern Financial Corporation to solicit proxies against the NAP/LDI option and joint venture agreement. IF YOU SUPPORT MANAGEMENT, DO NOT USE THE NORTHERN PROXY. Please use the GREEN MANAGEMENT PROXY to VOTE FOR the proposed transaction with NAP/LDI even if you have previously voted against the proposed transaction.

If you have any questions regarding voting or the NAP/LDI option and joint venture agreement please contact URSA Major Minerals Incorporated at 416-864-0615 or phone toll free 877-864-0615.

Address: 8 King Street East, Suite #1300, Toronto, Ontario, Canada M5C 1B5

Symbol & Exchange: UMJ - TSX Venture Exchange (TSXV)

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

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