North American Tungsten Corporation Ltd.

North American Tungsten Corporation Ltd.

March 16, 2005 08:30 ET

North American Tungsten Announces $6.25 Million Private Placement Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTH AMERICAN TUNGSTEN CORPORATION LTD.

TSX VENTURE SYMBOL: NTC

MARCH 16, 2005 - 08:30 ET

North American Tungsten Announces $6.25 Million
Private Placement Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2005) - NOT FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

North American Tungsten Corporation Ltd. (the "Company")(TSX
VENTURE:NTC) is pleased to announce that it has entered into an
agreement co-led by Sprott Securities Inc. and Haywood Securities Inc.
(collectively, the "Underwriters"), pursuant to which the Underwriters
have agreed to purchase 10,000,000 Units, at a price of $0.50 per Unit
for gross proceeds to the Company of approximately $5.0 million and
2,500,000 Flow-Through Shares, at a price of $0.50 per Flow-through
Share for proceeds to the Company of approximately $1.125 million, all
on an underwritten private placement basis. The Underwriters have the
option to purchase up to an additional 4.5 million Units at $0.50 per
Unit at any time prior to the closing of the Unit offering. Each Unit
will consist of one common share and one-half of one common share
purchase warrant. Each whole share purchase warrant will entitle the
holder to acquire a common share at a price of $0.60 for a period of two
years from closing.

These offerings are scheduled to close on or about March 30, 2005 and
are subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX
Venture Exchange.

North American Tungsten Corporation Ltd. is engaged in the acquisition,
development and mining of mineral properties, primarily tungsten
related. The Company owns 100% of the CanTung mine and the MacTung
deposit located on the border of Yukon and Northwest Territories,
Canada. The Company's tungsten assets represent the Western world's
largest high-grade tungsten reserves and resources and comprising some
15% of the world's resource base.

This press release, required by applicable Canadian securities law, is
not for distribution to U.S news services or for dissemination in the
United States, and does not constitute an offer of the securities
described herein. These securities have not been registered under the
United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States or
to U.S. persons unless registered or exempt therefrom.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    North American Tungsten Corporation Ltd.
    Stephen M. Leahy
    Chairman & CEO
    (604) 684-5300 Operations Office:
    (604) 684-2992 (FAX)
    (604) 682-1333 Corporate & Shareholder Communication Office
    (604) 682-1324