Stingray Resources Inc.
TSX VENTURE : SRY

Stingray Resources Inc.

February 21, 2007 17:05 ET

Stingray Financing to Fund El Pilar Purchase From Xstrata and Provide for a Comprehensive Work Program

TORONTO, ONTARIO--(CCNMatthews - Feb. 21, 2007) - Stingray Resources Inc. ("Stingray" or the "Company") (TSX VENTURE:SRY) is pleased to announce that it has entered into an agreement with Canaccord Capital Corporation ("Canaccord") and GMP Securities LP ("GMP") to co-lead a fully marketed offering ("the Offering") to raise a minimum of $35 million and up to a maximum of $45 million on a best efforts basis. The Offering will consist of units comprised of one common share and a one half of a common share purchase warrant exercisable for 24 months from closing. The terms of the units and the warrants will be negotiated between the co-lead agents and the Company. Proceeds from the financing will be used to fund the remaining $ US 17.75 million payable to Xstrata 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 News Release 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, calculated by Magri Consultants of Chile under the direction of NORMEX in 2003 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 meter 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 www.sedar.com.

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.

Stingray anticipates that the financing will be completed in the coming weeks and the work programs can start shortly thereafter. Stingray will be focused on the advancement of the El Pilar project to a feasibility stage.

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: 12,806,330 common shares.

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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT REPONSIBILITY FOR THE ADEQUACY OR ACCURANCY OF THIS NEWS RELEASE.

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