Stingray Resources Inc.

Stingray Resources Inc.

April 24, 2007 11:52 ET

Stingray Completes $50,040,000 Financing to Fund El Pilar Purchase From Xstrata and Provide for Work Program

TORONTO, ONTARIO--(CCNMatthews - April 24, 2007) -


Stingray Resources Inc. ("Stingray" or the "Company") (TSX VENTURE:SRY) is pleased to announce that it has closed the fully marketed "best efforts" offering (the "Offering") co-led by Canaccord Capital Corporation ("Canaccord") and GMP Securities LP ("GMP") and including Westwind Partners Inc. An aggregate of 41,700,000 units were issued pursuant to the Offering to raise gross proceeds of approximately $50 million. Each unit consists of one common share of Stingray and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to purchase one common share of Stingray at a price of $1.80 at any time until April 24, 2009. Proceeds from the financing will be used to fund the remaining US$17.75 million payable to Xstrata plc for the purchase of all of the outstanding shares of Noranda Mexico S.A. de C.V. ("NORMEX"), the owner of the El Pilar oxide copper project located in Sonora, Mexico (See Stingray News Release of November 29, 2006). The balance of the net proceeds of the Offering will be used to advance the El Pilar project towards feasibility and Stingray plans to start drilling shortly after it has gained ownership of NORMEX.

The Units, common shares, warrants and common shares issuable upon the exercise of such warrants have not been registered under the United States Securities Act of 1933 (the "Act") and may not be offered or sold absent registration under the Act or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption therefrom.

The El Pilar property is located in north-central Sonora, roughly fifteen (15) kilometers south of the international border with the United States. The property is situated in the highly prospective, Sonora-Arizona Porphyry Copper Province. This copper trend accounts for the second largest concentration of porphyry copper deposits in the world. El Pilar lies 45 kilometers northwest of the Cananea deposit, the largest porphyry copper deposit in Mexico.

The initial plan for the Company is to better define and enhance the resources previously outlined by NORMEX on the property and to improve the classification of the known copper resource. Copper at El Pilar is hosted by a conglomerate unit containing clasts of intrusive, porphyry and highly silicified rock. The inferred mineral resource, as verified by Gary Woods P Geo, a Qualified Person for the purposes of NI 43-101, in a report addressed to the Company, consists of 180 million tonnes averaging 0.365% copper containing 656,000 tonnes of fine copper (1.447 billion pounds copper).

The principal copper mineral is chrysocolla which is known to be acid soluble and amenable to heap leaching. The resource has been drill tested with roughly 200 metre spaced holes. Closer drill spacing is needed to increase the level of confidence in the resource. At this time, the resource also remains open to the south. A 43-101 technical report has been submitted to regulatory authorities and has been posted at

In addition to drilling, the Company will be focused on detailed metallurgical test work in the near future. Metallurgical test work to date is of a preliminary nature and much more metallurgical testing is required in order to provide information needed to predict the metallurgical characteristics of the deposit and simulate a commercial operation.

Peter Mordaunt, P Geo. is the qualified person pursuant to National Instrument 43-101 and supervised the technical information presented in the news release.

Issued: 54,506,330 common shares.

Steve Brunelle, Vice President Peter Mordaunt, President & Chairman

Certain Statements presented herein may constitute "forward-looking statements". Such forward-looking statements may include potential mineralization, resources and reserves, conclusions of prefeasibility and feasibility studies, estimates of future production, capital and operating costs, prices of metals and other known and unknown risks. These and other factors and uncertainties may cause material differences from future results as expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include but are not limited to the risks involved in the exploration, development and mining business.


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