Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

September 30, 2010 15:50 ET

Lysander Announces Increase in Unit Financing to $11.5 Million from $8.0 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lysander Minerals Corp. (TSX VENTURE:LYM) (the "Company") is pleased to announce that further to its news release dated September 14, 2010, the private placement offering (the "Offering") of 38,095,000 units (the "Units") for gross proceeds of approximately $8,000,000, has been increased to 54,800,000 Units for total proceeds of approximately $11,500,000. Salman Partners Inc. is agent for the Offering; however approximately $3,500,000 of the Offering is non-brokered.

Each Unit will consist of one common share (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.30 per share for a period of 12 months following the closing of the Offering.

The Company expects to close the Offering on or about October 7, 2010, subject to applicable regulatory approvals. All securities issued as part of the Offering will be subject to a four-month hold period from the closing date.

The placement will facilitate the ongoing advancement of the Company's Verticalnaya anthracite project in the Donbass coal basin of south-eastern Ukraine.

Bryce M.A. Porter
President

About Lysander

The Company recently announced the appointment of Mr. John Byrne, formerly Executive Chairman of Western Coal Corporation, as Executive Chairman of the Company. Mr. Byrne and Mr. John Conlon, also a director of the Company, have been involved in the development of eight coal mines in recent years.

Using high standards of safety and efficiency, it is planned to develop the Verticalnaya mine in stages and lead developments by western companies in the Donbass coal basin.

The Verticalnaya anthracite mine, a former producer, is well located to serve export markets as well as steel operations, industrial users and power plants in Ukraine. Ramp up of construction for the first phase of development, Verticalnaya North, is commencing now.

Key project indicators shown in the September 2008 technical report for Verticalnaya, available on SEDAR (www.sedar.com) and the Company's website at www.lysanderminerals.com, include:

Net present value @12% US$ 352.1 million
Internal rate of return 35.2%
Average cash operating cost per saleable tonne US$ 31.19/tone
   
Proven reserves 16,200,000 tonnes
Probable reserves 11,000,000 tonnes
Measured resources 57,300,000 tonnes
Indicated resources 18,900,000 tonnes
Total resources 76,200,000 tonnes
     Resources are inclusive of reserves.  

A March 2010 technical report for the first phase of operations at Verticalnaya North is also available on SEDAR and the Company's website.

Please visit our website at www.lysanderminerals.com for further information.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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