Niocan Announces Response to Financing Proposal From Augyva Mining Resources Inc.

TORONTO, ONTARIO--(Marketwire - June 23, 2011) - Niocan Inc. ("Niocan" or the "Company")(TSX:NIO) acknowledged today that the Company has received a financing proposal (the "Proposal") from Augyva Mining Resources Inc. ("Augyva") whereby Augyva proposes to subscribe for 3,478,260 units (the "Units") of Niocan at a price of $1.15 per Unit, with each Unit consisting of one common share and one-half of one (½) common share purchase warrant of the Company. The Proposal is conditioned on Augyva representatives being granted three out of the Company's four Board seats.

After consultation with its financial and legal advisors, the Special Committee has concluded that the Proposal is inadequate and not in the best interests of Niocan and its shareholders for the following reasons:

• the Proposal seeks to provide Augyva control of Niocan through a relatively small investment without any consideration or premium to be received by Niocan shareholders;

• Augyva seeks exclusivity in connection with the Proposal at a time when the Special Committee is in negotiations with other third parties relating to strategic alternatives; and

• the Proposal in its current form will require shareholder approval and therefore cannot be completed by June 29, 2011 as proposed by Augyva.

The Special Committee continues to evaluate various strategic alternatives and is committed to selecting one that maximizes value and is in the best interests of all shareholders.

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 STATEMENTS

Certain statements contained in this press release are forward-looking and are subject to numerous risks and uncertainties, known 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, politicosocial 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.