New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

August 23, 2006 17:37 ET

New Millennium Capital Corp. Announces Closing of Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 23, 2006) -

Not for distribution to US newswire services or dissemination in the United States

New Millennium Capital Corp. (TSX VENTURE:NML) ("NML" or "the Corporation") is pleased to announce that the closing of the private placement previously announced on July 11, 2006 and July 28, 2006, has been completed for gross proceeds of $11,100,500. The Corporation issued 10,800,000 unit special warrants (the "Unit Special Warrants") at a price of $0.75 per Unit Special Warrant and 3,530,000 flow-through special warrants (the "Flow-Through Special Warrants") at a price of $0.85 per Flow-Through Special Warrant. Each Unit Special Warrant is exercisable for no additional consideration into one unit ("Unit") on the earlier of (i) five business days after the day upon which a decision document ("Decision Document") for a final prospectus that qualifies the distribution of the Units has been issued and (ii) December 24, 2006. Each Unit is comprised of one common share ("Common Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant will be exercisable into one Common Share for a period of twenty four months from Closing at an exercise price of $1.00 per Common Share. Each Flow-Through Special Warrant is exercisable, for no additional consideration into one flow-through common share ("Flow-Through Share") on the earlier of (i) five business days after the day upon which a Decision Document for a final prospectus that qualifies the distribution of the Flow-Through Shares has been issued and (ii) December 24, 2006. The Unit Special Warrants and the Flow-Through Special Warrants are subject to a hold period that expires on December 24, 2006.

NML will use commercially reasonable efforts to obtain a Decision Document for a final prospectus qualifying the issue of the Units and Flow-Through Shares. In the event NML fails to obtain a Decision Document for a final prospectus by October 6, 2006, each Unit Special Warrant will entitle the holder to acquire 1.1 Common Shares and 0.55 Warrants.

As consideration for their services in connection with the financing, Raymond James Ltd. and Research Capital Corporation (collectively, the "Agents") received a cash commission of 6% of the gross proceeds of the financing and Agents' Special Warrants, exercisable for no additional consideration into Agents' Warrants permitting the Agents to purchase Common Shares representing a number equal to 6% of the Unit Special Warrants and Flow-Through Special Warrants issued pursuant to the financing. The Agents' Warrants are exercisable at $0.75 for a period of 18 months from the closing of the financing.

The net proceeds of the issue of the Unit Special Warrants will be used to partially fund the costs of the feasibility study on the LabMag Project, currently estimated at $37 million, while the gross proceeds of the issue of Flow-Through Special Warrants will be used to fund exploration programs on Canadian properties, including the LabMag Project.

About New Millennium

New Millennium holds an 80% interest in the LabMag Iron Ore Project, the world's largest known undeveloped magnetite reserve that is currently at an advanced stage of exploration. The project is located in the province of Newfoundland and Labrador ("NL") about 220 km north of Labrador City and 30 km northwest of Schefferville, Quebec. The development envisions the construction and operation of a mine, crusher, concentrator, slurry pipeline, pellet plant, shiploading facilities and related infrastructure. Subject to positive feasibility studies and project financing, it is expected that the final pellet product would constitute a significant new source of global pellet supply and would be shipped by ocean vessels to markets in Canada, the United States, Western Europe and Asia. For further information, please visit www.nmlresources.com.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. New Millennium does not assume any obligation to update any forward looking information contained in this news release.

No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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