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

POLYMET MINING CORP.

September 21, 2005 12:05 ET

PolyMet Negotiates Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 21, 2005) - PolyMet Mining Corp. (the "Company") (TSX VENTURE:POM)(OTCBB:POMGF) announces that the Company has negotiated a non-brokered private placement for a total of up to 4,000,000 units (the "Units"), each Unit comprised of one common share (a "Share") and one-half of one non-transferable share purchase warrant (a "Warrant"), in the capital stock of the Company at $1.40 per Unit to net the treasury an aggregate of up to $5,600,000. One full Warrant will entitle the holder to purchase one additional common share of the Company (a "Warrant Share") for a period of 18 months from the date of closing of the transaction at $2.00 per share; provided that, if at any time the closing trading price for the common shares is greater than $2.50 per share for any 20 consecutive trading days, the Company has the right to accelerate the expiry date of the Warrants upon 30 days' notice to the holders thereof.

A finder's fee in the amount of 10% of the gross proceeds will be paid with respect to the placement of certain of the Units in the form of shares (the "Finder's Shares") in the capital stock of the Company.

The Shares, the Warrants, the Warrant Shares and the Finder's Shares will be subject to a hold period of four months plus one day from the date of issuance of the aforesaid securities.

The proceeds of the private placement will be used to complete the feasibility study on the Company's Northmet Property, and to provide working capital in connection with the transition to construction and commissioning of the project.

The proceeds from the exercise of the Warrants, if any, will provide general working capital.

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

William Murray, President

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

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