Niocan Announces Notice of Intent of Offer From Augyva Mining Resources Inc.

MONTREAL, QUEBEC--(Marketwire - Jan. 13, 2011) - Niocan Inc. ("Niocan" or the "Company") (TSX:NIO) announces that its Board of Directors has been made aware, through the issuance by Augyva Mining Resources Inc. ("Augyva") of a press release dated January 12, 2011, of Augyva's intent to make an unsolicited offer to acquire all of the issued and outstanding common shares of Niocan, by way of a formal take-over bid, an amalgamation, a plan of arrangement or any other similar transaction. 

Niocan announced earlier today that it has received an offer from Nio-Metals Holdings LLC ("Nio-Metals") for a business combination with the Company, and that the Company has formed a special committee of independent directors ("Special Committee").

The Special Committee will investigate and evaluate the offer received from Nio-Metals, any offer it may receive from Augyva as well as any other opportunities available to the Company, with the objective of further enhancing shareholder value ("Strategic Review").

Niocan does not intend to disclose developments with respect to the Strategic Review unless and until the Board of Directors has approved a definitive transaction or strategic option. Also, in the event a definitive proposal is received, there is no assurance that such a proposal will be recommended by the Special Committee or the Board of Directors or that such proposal will be implemented. There is no assurance that any transaction will occur, or if a transaction is undertaken, as to its terms or timing.

About Niocan

Niocan's mission is to become a ferroniobium producer as soon as possible, following the issuance of a Certificate of Authorization from the Ministry of Sustainable Development, Environment and Parks for its Oka niobium property. Mining assets include mining rights in two (2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and the Hudson Bay Great Whale Iron property covering 17,098 acres.

On behalf of the Board of Directors

FORWARD LOOKING STATEMENT

Certain statements contained in this press release are forward-looking and are subject to numerous risks and uncertainties, know and unknown. For information identifying known risks and uncertainties, relating to the issuance by the Ministry of Environment of the Certificate of Authorization to build the mine in Oka, financial resources, market prices, exchange rates, politico-social conflicts, competition, the purchase of the old St-Lawrence Columbium mine site from the Municipality of Oka should the Certificate of Authorization be issued, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk and Uncertainties Section of the Corporation's most recent Management's Discussion and Analysis, which may be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.