Red Mile Minerals Corp.
TSX VENTURE : RDM

Red Mile Minerals Corp.

August 26, 2011 15:52 ET

Red Mile Minerals Corp. Closes First Tranche of Private Placement With MineralFields Group

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2011) - Red Mile Minerals Corp. (TSX VENTURE:RDM) ("Red Mile" or the "Company") is pleased to announce the closing of a non-brokered private placement of $350,000 with the MineralFields Group (the "Offering"). Red Mile issued 2,800,000 flow-through units (the "FT Units") at a price of $0.125 per FT Unit. Each flow-through unit is comprised of one common share and one-half of one non-flow-through share purchase warrant, with each whole warrant exercisable into a common share at an exercise price of $0.15 for a term of 24 months. Red Mile expects to close a second tranche of this financing in the next few weeks (please see the Company's news release of August 9, 2011 for further details on the financing).

A cash finder's fee of $19,250, to Limited Market Dealer Inc., representing 5.5% of the gross proceeds of the Offering, was paid by Red Mile in connection with the Offering as well as the issuance by Red Mile of a non-transferable option (the "Finder Option") to acquire 252,000 units of Red Mile (the "Finder Units"). The Finder Option is exercisable into Finder Units for a period of 24 months following the closing of the Offering at an exercise price of $0.125 per Finder Unit. Each Finder Unit will consist of one common share of Red Mile and one-half of one common share purchase warrant of Red Mile, with each whole warrant exercisable into a common share at an exercise price of $0.15 for a term of 24 months.

The gross proceeds of the Offering will be used to continue exploration activities primarily on the Company's Dorset property in Newfoundland.

The securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing of the Offering.

About MineralFields Group

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®, and have raised over $1 billion in their 10 year history.

About Red Mile Minerals

Red Mile Minerals is a tightly held mineral exploration company with a highly prospective gold property in the prolific Baie Verte peninsula in Newfoundland and along the historic Destor-Porcupine gold-producing region in Ontario. Red Mile continues to seek additional mineral exploration opportunities where the company's exploration expertise and corporate share structure could substantially enhance shareholder value. Currently there are 16,575,000 shares issued and outstanding.

This press release contains forward-looking statements. More particularly, the press release contains forward-looking statements related to the anticipated closing of the Offering and the use of proceeds therefrom. The forward-looking statements contained in this document are based upon certain key expectations and assumptions made by Red Mile, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Offering. Although Red Mile believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Red Mile can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Offering.

Additional information on these and other factors that could affect Red Mile's operations and financial results are included in reports, including Red Mile's quarterly and annual reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Red Mile undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

On behalf of the Board of Red Mile Minerals Corporation

John Hickey, President and CEO

Neither the 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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