Puget Ventures Inc.
TSX VENTURE : PVS

Puget Ventures Inc.

July 21, 2011 14:07 ET

Shareholders of Puget Ventures Inc. Vote to Approve Deal That Will Transform Company Into Global Cobalt Corporation

Transaction Will Give Global Cobalt Corporation Strategic-Minerals Assets in Central Asia and an Opportunity to Develop a New Mining Region

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2011) - PUGET VENTURES INC. (TSX VENTURE:PVS) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA OR DISTRIBUTION TO UNITED STATES OF AMERICA NEWS OR WIRE SERVICES

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

PUGET VENTURES INC. ("Puget") today announced that shareholders have voted in favour of proposed transactions that, if completed, will result in a newly named international mineral exploration company, Global Cobalt Corporation, which will own world-class cobalt, tungsten and other strategic-metals projects in Russia's Altai Republic and in Mongolia.

"We are delighted that shareholders have approved this deal as an important step in Puget's transformation into Global Cobalt Corporation, the first publicly listed mining company to develop this mineral-rich and mining-friendly part of the world," said Puget president Erin Chutter at the annual and special meeting of shareholders held today in Vancouver.

Shareholders voted on a reverse takeover of Puget by privately owned Imperial Mining Holdings Ltd. Through the transaction and subject to the satisfaction of conditions precedent including regulatory approvals, Puget will acquire all issued and outstanding securities of Pafra, a wholly owned subsidiary of IMHL, and owner of the central Asian assets.

The flagship asset is the Karakul Project in Russia's Altai Republic in Southern Siberia, where multiple mineral deposits were discovered in the Soviet era. "It is a mineral rich region, which shares its borders with other mineral-rich countries of Kazakhstan, Mongolia and China and is ready for the foreign investment and development expertise that Global Cobalt Corp. will bring," noted Chutter. Karakul, an advanced-stage exploration project, could become one of the largest known non-African sources of primary cobalt, which has been designated strategic by the United States and European Union. Cobalt is a component of batteries, electronic products, renewable energy technologies and steel.

The Altai government and Federal Government of Russia have confirmed a commitment of $475 million (Cdn) over the next five years for mining-related infrastructure development.

Subject to satisfying all other conditions of the TSX Venture Exchange, Puget will change its name to Global Cobalt Corporation. Also as a condition of the acquisition, Puget will apply for graduation to list its shares on the TSX. There is no guarantee that the common shares will be accepted for listing by the TSX.

The TSX Venture Exchange's final acceptance of the proposed transaction is also subject to Puget's completion of a $16-million (Cdn) financing. Puget has engaged Mackie Research Capital Corporation to act as agent for the financing of unit subscription receipts, each unit subscription receipt to be offered at a price of $1.05 and include one common share of Puget, and one-half of one common share purchase warrant exercisable at $1.50 for a period of 36 months following closing of the offering. The proceeds will advance and develop the Karakul Project and continue the exploration work at Puget's Werner Lake Belt region in northwest Ontario, Canada, and for working capital purposes.

Macquarie Private Wealth Inc. is acting as Sponsor with respect to the transaction and has issued its sponsorship report to the TSX Venture Exchange.

About Puget Ventures Inc. (www.pugetventures.com)

Puget Ventures Inc. is a Vancouver, Canada-based mineral-resource exploration company focused on the acquisition, exploration and development of strategic base metals properties, with a focus on cobalt. Puget Ventures' package of properties encompasses historic deposits and past Cobalt and Nickel-Copper-PGE producers, including the Werner Lake Mineral Belt located in North-western Ontario, Canada.

Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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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