POLYMET MINING CORP.
TSX VENTURE : POM
OTC Bulletin Board : POMGF

POLYMET MINING CORP.

August 25, 2005 19:16 ET

PolyMet Mining Corporation Announces a Non-Brokered Private Placement Financing for up to 9,000,000 Units

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS

William Murray, President of PolyMet Mining Corp. (TSX VENTURE:POM)(OTCBB:POMGF) (the "Company"), is pleased to advise that, subject to TSX Venture Exchange (the "Exchange") approval, the Company has negotiated a non-brokered private placement of up to 9,000,000 Units at a price of $0.90 per Unit for gross proceeds of $8,100,000. Each Unit will consist of one share (a "Share") and one half of a share purchase warrant. One full warrant (a "Warrant") will permit the holder to purchase a further share (a "Warrant Share") for a period of 30 months from issuance at a price of $1.25 per Warrant Share, provided that if the closing price of the Issuer's shares as traded on the Exchange is over $2.50 per share for 20 consecutive trading days, the Company will have the right to accelerate the expiry of the Warrants upon giving 30 days notice to the holders thereof.

Finders' fees in accordance with the Policies of the Exchange will be paid in cash or common shares on a portion of the financing.

The proceeds of the private placement will be used to further the completion of a Definitive Feasibility Study on the NorthMet Project. The proceeds of the exercise of Warrants, if any, will provide general working capital.

In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to "hold period" of four months plus one day from the date of closing of the private placement.

The private placement transaction is subject to acceptance by the Exchange and any other regulatory authority having jurisdiction.

POLYMET MINING CORP.

William Murray, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.


The TSX Venture Exchange has not reviewed and does not accept responsibility fro the adequacy or accuracy of this news release.

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