Nilam Resources Inc.
OTC Bulletin Board : NILR

March 03, 2008 09:57 ET

Nilam Resources Arranges U.S. $1.5 Million Financing at $1.90 Per Share

TORONTO, ONTARIO--(Marketwire - March 3, 2008) - Nilam Resources Inc. (OTCBB:NILR)(FRANKFURT:3NL) is pleased to announce today that it has arranged a private placement of 833,333 shares at a price of $1.90 U.S. for a total gross proceeds of $1,500,000.

Nilam Resources Inc. is arranging a non-brokered private placement of 833,333 units at a price of $1.90 per unit for total gross proceeds of up to $1,500,000. The units consist of one common share and one full share purchase warrant, with each warrant exercisable for $2.00 for another 18 months from the closing date of the private placement. A finder's fee in accordance with exchange guidelines may be payable on this financing. The Warrant is redeemable by Nilam without consideration upon thirty (30) days notice to the Subscriber. The shares of common stock included in the units as well as the common shares underlying the Warrants are "restricted securities" as that term is defined in Rule 144 of the Securities Act of 1933 and the units were sold pursuant to an exemption from registration requirements provided by Regulation S.

Len DeMelt Chairman of Nilam Resources states "Proceeds from the private placement will be used to expand our production on the Pativilca mine from 50 tons a day to 500 tons a day, purchase equipment and hire more labor and implement the business strategy that we have set out for 'Nilam'."

About Nilam Resources Inc.

Nilam Resources Inc. was established to focus on Peru's fast growing precious and base metals reserves, to become one of Peru's largest foreign metal producers. Nilam Resources is a gold production company that is actively seeking more properties for its land portfolio in Peru and other countries in South America. Nilam resource plans on becoming a major production company through acquiring additional producing mines and through a series of joint ventures. The companies long standing relationships within Peru has allowed the company many opportunities to some of the most sought after properties in the country which allows Nilam Resources Inc. first right of refusal on exceptional projects.

Safe Harbour Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information