Royal Standard Minerals Inc.
OTC Bulletin Board : RYSMF

Royal Standard Minerals Inc.

June 30, 2011 17:42 ET

Royal Standard Announces Entry Into US$8,000,000 Credit Facility

TORONTO, ONTARIO--(Marketwire - June 30, 2011) - Royal Standard Minerals Inc. (OTCBB:RYSMF) (the "Company" or "Royal Standard") is pleased to announce that it has entered into a secured bridge loan agreement dated June 29, 2011 with Waterton Global Value, L.P. ("Waterton") pursuant to which Waterton has agreed to make an US$8,000,000 bridge loan (the "Credit Facility") available to the Company. The amounts drawn down under the Credit Facility will incur interest at 6% per annum, and the scheduled repayment date of the Credit Facility is 16 months after the initial closing date. The Credit Facility is secured by, amongst other items, the Company's real property assets in Nevada.

The Company may draw down up to US$4,000,000 on the Credit Facility immediately, and may draw down an additional US$4,000,000 upon completing certain operational milestones at the Company's Goldwedge Property located in Nye County, Manhattan, Nevada.

Each of Royal Standard and Waterton intend to convert the Credit Facility into a longer-term gold stream debt facility within the next few months. It is currently contemplated that the maturity date of the gold stream debt facility will be 24 months after it is first entered into by the parties.

The Company is pleased to announce that it plans to use the proceeds of the Credit Facility to pursue an underground drilling program at the Goldwedge Property as a part of a broader program to better develop the mine plan and generally further development. As a matter of first instance, the Company plans to complete the necessary monitoring wells required by the permits for the rapid infiltration basin construction process as a part of the overall new mine dewatering system. In conjunction with broader Project upgrades, the Company is also planning the installation of a larger ball mill. The Company plans to have work on the foregoing, and certain other development items, initiated by mid-July, 2011.

In connection with the Credit Facility, the Company has agreed to pay Waterton a structuring fee, and has also provided Waterton with certain royalty interests relating to its Goldwedge Property. The Company and Waterton have also entered into a gold purchase agreement pursuant to which Waterton has agreed to purchase the Company's production.

About Royal Standard

Royal Standard is a natural resource exploration and development company, with its principal mining assets being in Nye County, Nevada. For further information about this release, please contact Mr. Rich Kaiser, Investor Relations, 800-631-8127.

Disclaimer for Forward-Looking Information

This news release contains forward-looking statements, including about completion of the financing facility and current expectations on the timing of the commencement of further project development. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian and US economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Royal Standard's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and the United States and available at www.sedar.com and www.edgar.com and readers are urged to read these materials. Royal Standard assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

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