Mineral Deposits Limited
TSX : MDM
ASX : MDL

Mineral Deposits Limited

June 19, 2008 19:00 ET

Mineral Deposits Limited Announces Private Placement of Ordinary Shares

MELBOURNE, AUSTRALIA --(Marketwire - June 19, 2008) -

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

Mineral Deposits Limited ("MDL") (TSX:MDM)(ASX:MDL) is pleased to announce the private placement of 63 million ordinary shares in MDL. The issuance price for each ordinary share is A$0.77.

The funds raised under this private placement, together with the company's approved banking facilities, will be used to complete the Sabodala Gold Project ("Sabodala") and for general working capital purposes. The company is pleased to report that Sabodala is 60% complete. The total cost to complete Sabodala, at 1 June 2008, is forecast to be approximately US$91 million, which consists of the following:

- construction capital costs of US$68 million (which includes as yet unused contingency allowance of US$12.2 million);

- pre-production mining and ore stockpiling costs of US$11.9 million; and

- machinery spares and remaining mining fleet acquisition costs of US$11.5 million.

Further details of the fundraising and the company's projects can be found in the institutional presentation available on MDL's website (www.mineraldeposits.com.au), to which your attention is drawn.

The ordinary shares have been placed outside of Canada and the United States to institutional clients of GMP Europe and Euroz Securities Limited of Australia. Sales have not been made to US or Canadian persons. There will be no public offering of the ordinary shares which will be issued solely on a private placement basis. The issuance of the ordinary shares is subject to the approval of the Toronto Stock Exchange.

The closing of the offering is scheduled to take place on or about 26 June 2008.

MDL is an Australian mineral resource company incorporated under the laws of Australia. MDL, through its subsidiaries, engages in mineral exploration activities and holds an interest in two development projects in Senegal, west Africa, namely Sabodala and the Grande Cote Zircon Project, and other exploration projects in the Sabodala region.

The ordinary shares are not being offered in or to any resident of Canada, and no solicitations or expressions of interest will be accepted from any resident of Canada. There are certain restrictions governing the resale of the privately placed ordinary shares in Canada.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond MDL's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Such risks and uncertainties include, but are not limited to, the risk that the private placement will not close or that it will not close on the schedule announced. The company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws.

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