Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

October 08, 2010 12:41 ET

Lysander Closes Unit Financing of $11.5 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 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 it has closed, subject to applicable regulatory approvals, a private placement offering (the "Offering") of 54,797,425 units (the "Units") priced at $0.21 per unit for gross proceeds of approximately $11,500,000. Each Unit consists 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 until October 7, 2011. All securities issued as part of the Offering will be subject to a four-month hold period expiring on February 8, 2011.

Salman Partners Inc. acted as agent for the Offering. Approximately $4,350,000 of the Offering was non-brokered. 

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

The Executive Chairman of the Company, Mr. John Byrne, commented:

"Lysander now has in place a structure for the financing of the re-opening of the Verticalnaya mine. We are confident that the warrants will be exercised in a timely manner so that the Company will fully equity fund the Verticalnaya North project in line with the NI 43-101 technical report for that project.

We will now look at ways to accelerate production and examine other opportunities presented to the Company. It is our aim to become a major Ukrainian coal mining company."

On behalf of the Board,

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/tonne
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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