Tiomin Resources Inc.

Tiomin Resources Inc.

March 08, 2005 15:12 ET

Tiomin Resources Announces Closing of Previously Announced Financing: Over-allotment Provision taken-up to Increase the Total Offering to Cdn $7 Million


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TIOMIN RESOURCES INC.

TSX SYMBOL: TIO

MARCH 8, 2005 - 15:12 ET

Tiomin Resources Announces Closing of Previously
Announced Financing: Over-allotment Provision taken-up
to Increase the Total Offering to Cdn $7 Million

TORONTO, ONTARIO--(CCNMatthews - March 8, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Tiomin Resources Inc. ("Tiomin") (TSX:TIO) is pleased to announce that
it has today closed the previously announced equity financing led by
Sprott Securities Inc. and including Paradigm Capital Inc. to raise Cdn
$5 million through an underwritten private placement of Units priced at
$0.40 per Unit. Each Unit will consist of one common share and one-half
of one common share purchase warrant ("Warrant"), each whole Warrant is
exercisable into one common share of Tiomin at $0.50 per share for a
period of 24 months after closing.

The issue was subject to an over-allotment provision for the purchase of
up to an additional 5,000,000 Units or Cdn $2 million which was
taken-up, increasing the total gross proceeds of the issue to $7
million.

Net proceeds from the issue will be applied towards the Kwale titanium
mineral sands project in Kenya as it prepares to enter the construction
phase, exploration expenditures and property payments on the Pukaqaqa
copper/gold project in Peru, as well as general corporate purposes.

On February 2, 2005, Tiomin signed the fiscal investment agreement with
the Government of Kenya for its Kwale titanium mineral sands project,
paving the way towards construction later this year following completion
of project financing. In addition, earlier this year the Company signed
a 49/51% joint venture agreement with Compania Minera Milpo S.A.A. for
the exploration of the Pukaqaqa copper/gold deposit in Peru where a
3,300 meter drilling program is underway.

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.

Certain of the information contained in this news release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the
prices of rutile, zircon and ilmenite, estimated future production,
estimated costs of future production, the Company's sales policy and
permitting time lines, involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
actual prices of rutile, zircon and ilmenite, the factual results of
current exploration, development and mining activities, changes in
project parameters as plans continue to be evaluated, as well as those
factors disclosed in the Company's documents filed from time to time
with the Ontario Securities Commission.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Tiomin Resources Inc.
    Jean-Charles Potvin
    President
    (416) 350-3776, ext. 227
    or
    Tiomin Resources Inc.
    Ian MacNeily
    CFO
    (416) 350-3776, ext. 232
    or
    Tiomin Resources Inc.
    Donna Yoshimatsu
    (416) 350-3776, ext. 222
    www.tiomin.com
    NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY
    HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN