Probe Mines Limited

TSX VENTURE : PRB


Probe Mines Limited

November 29, 2012 09:23 ET

Probe Mines Closes the Sale of Its Goldex Royalty Interest to Agnico-Eagle Mines for $18 Million

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2012) - Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that it has closed the previously announced sale of its 5% Net Smelter Royalty (the "Royalty") on a portion of the Goldex Mine to Agnico-Eagle Mines Limited ("Agnico-Eagle").

Under the terms of the Purchase Agreement, Probe received a cash remittance of $14.0 million from Agnico-Eagle at closing. Additionally, Probe will receive a further payment of $2.5 million payable, at the option of Probe, in cash or common shares in the capital of Agnico-Eagle in the event that production at the portion of the Goldex Mine subject to the Royalty exceeds 17,320 ounces (such shares to be priced at a 5-day VWAP); and an additional payment of $l.5 million payable, at the option of Probe, in cash or Agnico-Eagle Shares in the event that production at the Goldex Mine subject to the Royalty exceeds 20,320 ounces, inclusive of the 17,320 ounces provided for above (such shares to be priced at a 5-day VWAP).

The sale of the Goldex Royalty provides Probe with a non-dilutive source of funding and the necessary capital for continued work on the Company's Borden Lake Gold Project. With this transaction, Probe remains well-funded through the foreseeable future, which includes its projected exploration and expansion drilling programs during 2013 and potentially well into 2014.

Patrick Reid, Chairman of the Board, stated "Through the monetization of the Goldex Royalty, Probe has considerably strengthened its treasury, enabling the Company to continue advancing its Borden Lake Gold Project. This was an opportune time to divest ourselves of a non-core asset in order to fund the exploration and expansion activities at Borden Lake without diluting our shareholders."

About Probe Mines:

Probe Mines Limited is a Canadian precious metals exploration company whose key asset is the Borden Lake Gold project in Ontario, Canada. As of July 31, 2012, the Company had approximately $27 million in treasury and a portfolio of highly prospective mineral properties. The Company is actively exploring a significant new gold resource on its Borden Lake project near Chapleau, Ontario and has 100% interest in the Black Creek chromite deposit located in Northern Ontario. The Company's shares trade on the TSX Venture Exchange under the symbol PRB.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at www.probemines.com.

On behalf of Probe Mines Limited,

Dr. David Palmer, President & Chief Executive Officer

Forward-Looking Statements

This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Shares Issued: 65,391,491

Neither 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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