Puma Exploration Inc.
TSX VENTURE : PUM

Puma Exploration Inc.

August 03, 2006 09:45 ET

Puma Exploration Completes a Private Placement of $750,000

RIMOUSKI, QUEBEC--(CCNMatthews - Aug. 3, 2006) - Puma Exploration (TSX VENTURE:PUM) has completed a $750,000 private placement with through MineralFields group. In connection with this private placement, Puma Exploration has issued 2,272,727 units. Each unit consists of one flow-through common share at a price of $0.33 per share and one common share purchase warrant exercisable until July 31, 2008. Each warrant will entitle the holder thereof to acquire one additional common share at a price of $0.45 per share until July 31, 2007 and at $0.60 per share from August 1, 2007 until July 31, 2008. If, at any time, the trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $1.00 for 10 consecutive trading days, as evidenced by the price at the close of market, Puma shall be entitled to notify in writing the holders of warrants of its intention to force the exercise of the warrants. Upon receipt of such notice, the holders of warrants shall have 20 business days to exercise the warrants, failing which the exercise price of the warrants will automatically be adjusted to $0.90 until their expiration.

Limited Market Dealer Inc. has acted as finder in connection with the placement. A fee of 5% of the amount of the placement as well as to diligence fees of 4 % of the amount of the placement have been paid to Limited Market Dealer together with an option to acquire 204,545 each unit will consist of one common share at a price of $0.33 and one common share purchase warrant. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant shall carry the same terms and conditions as those offered to investors.

All securities issued under this placement will be subject to hold period until December 1, 2006.

Proceeds from the placement will be used for exploration work scheduled for 2006.

Following completion of the placement the Company will have 23,932,727 shares issued and outstanding.

About Puma Exploration

Puma Exploration is a mineral exploration company that is actively acquiring and exploring advanced mineral properties that contain precious and base metal deposits at the mineral reserve definition stage. The Company is currently evaluating resources on it two major projects, the silver-lead-zinc Nicholas-Denys property in New Brunswick and the Little Stull Lake gold property in Manitoba.

About MineralFields

MineralFields is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged, superflow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

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

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