NQ Exploration Inc.

NQ Exploration Inc.

April 11, 2011 11:38 ET

NQ Exploration Announces a $2,000,000 Private Placement and Plan 20,000 m of Drilling on Carheil

LAVAL, QUEBEC--(Marketwire - April 11, 2011) - NQ Exploration Inc. (TSX VENTURE:NQE) announces that it has entered into an agreement with Industrial Alliance Securities Inc. (the "Agent") to proceed with a private placement on a "best efforts" basis for gross proceeds of up to $2,000,000 (the "Offering"). The Offering consists of the issuance of a maximum of 3,125,000 flow-through common shares (the "Flow-Through Shares") at a price of $0.16 per Flow-Through Share for maximum gross proceeds of $500,000 and a maximum of 12,500,000 units (the "Units") at a price of $0.12 per Unit for maximum gross proceeds of $1,500,000. Each Unit will be comprised of one (1) common share at a price of $0.12 and one (1) common share purchase warrant entitling its holder to subscribe for one (1) common share at a price of $0.16 per share for a period of two (2) years following the closing of the Offering, subject to an acceleration provision if the price of the common shares of NQ listed on the TSX Venture Exchange Inc. is above $0.30 for a period of 20 consecutive trading days. In this event, the warrants must be exercised or will expire thirty calendar days after notice is mailed to the holders of Warrants.

The proceeds of the Offering combined, with existing working capital, will be used by NQ to conduct exploration programs in 2011 and for general working capital.

At the closing of the Offering, the Agent will receive a cash commission equal to 8.5% of the gross proceeds raised under the Offering. In addition, the Agent shall receive non-transferable warrants at a price of $0.12 exercisable for a period of two (2) years from the date of closing to acquire such number of common shares of the Company as is equal to 7% of the aggregate number of Flow-Through Shares and Units issued under the Offering.

The Offering is scheduled to close on or about April 26, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a four month and one day hold period from the date of closing of the Offering.

The funds obtained from this offering will mostly be used to continue explore and develop the 100% owned Carheil project located in northern Quebec, near the former Selbaie polymetallic mine. Recent drilling results on the project have convinced the management of NQ that a major silver rich polymetallic deposit is being uncovered in the Nordest Showing area.

The geological environment of the Carheil project is similar to the one that hosted the Selbaie deposit located 6 km to the east (53 MT @ 1.0% Cu, 1.9% Zn, 41 g/t Ag et 0.6 g/t Au). NQ controls 47 km2 of the favourable stratigraphy and intends to extend its exploration effort over the whole land package. The company is currently mobilizing a geophysical crew to investigate another potentially favourable horizon.

Over the next 18 months, the company wishes to carry out an aggressive 20,000 m drilling program to further delineate the Nordest deposit and evaluate the other high priority targets on its Carheil and Brouillan West projects. The current offering will be allocated to an initial 10,000 m of drilling starting in May. A further financing will be needed to cover the additional 10,000 m.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.


NQ Exploration Inc. is a mining exploration company with a solid portfolio of 10 mining properties in the James Bay and Abitibi regions of Quebec. NQ Exploration Inc. is betting on Quebec's excellent mineral potential and favourable investment climate to produce new world-class gold and base metal deposits.

The technical content of this press release has been checked by Pierre O'Dowd, geologist and vice president of exploration for NQ Exploration Inc. Mr. O'Dowd is a qualified person under Regulation 43-101 respecting standards of disclosure for mineral projects.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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