Puma Exploration Inc.

Puma Exploration Inc.

December 16, 2010 09:10 ET

Puma Exploration Welcomes Sprott Asset Management as a Shareholder

RIMOUSKI, QUEBEC--(Marketwire - Dec. 16, 2010) - Puma Exploration (TSX VENTURE:PUM), is pleased to announce the closing of a private placement in the amount of $1,000,000 with Sprott Asset Management LP for and on behalf of certain funds. With this placement, Puma has issued 5,000,000 ordinary shares valued at $0.20 per share and 5,000,000 warrants. Each warrant entitles the holder to subscribe for one ordinary share at a price of $0.30 per share until December 16, 2012.

The Offering is non-brokered and the Company has agreed to pay a cash finder's fee of 4% of the aggregate proceeds of the Private Placement. The Shares sold pursuant to the Offering may not be resold for a period of four months and one day from the date of issuance of the Shares pursuant to the requirements of the TSX Venture Exchange and applicable securities laws. All the terms of the Offering are subject to the final approval of the TSX Venture Exchange.

The proceeds of the placement will be used as working capital, and for exploration work on the company's Nicholas-Denys Silver project in New Brunswick.

On going program on Nicholas-Denys Silver Property

The primary goals for the current exploration program on the Nicholas-Denys Silver property are to further delineate mineralized zones discovered in the previous drilling programs at the Haché and Shaft lenses and to conduct an extensive geophysical survey to define priority targets to be drilled along the 2.3 km strike length of the favourable structure between the Haché and Henry lenses. The 20 km-line InfiniTEM® field survey is completed and the final interpretation should be available shortly.

Following the final interpretation of the geophysical survey more field work including prospecting, trenching and drilling will be undertaken at the beginning of 2011 to test the priority targets identified by the current work.

About Puma Exploration

Puma Exploration is a Canadian mineral exploration company with advanced projects in precious and base metals in Canada. The Company's major projects are the Nicholas-Denys Silver Project and Turgeon Copper Project in New Brunswick and the Little Stull Lake Gold Project in Manitoba.

Details of Puma projects are available at www.explorationpuma.com

The contents of this press release were prepared by Marcel Robillard. a Qualified Person as defined in NI 43-101. 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."

This press release may contain certain forward-looking statements that include elements of risk and uncertainty. Consequently, actual results may differ substantially from those anticipated in such statements. These risks and uncertainties are described in the quarterly and annual reports and in the documents submitted to the securities administration.

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