Update on Niocan's Private Placement Financing with Forbes & Manhattan

TORONTO, ONTARIO--(Marketwire - May 20, 2011) - On May 4, 2011, Niocan Inc. ("Niocan" or the "Company") (TSX:NIO) announced that the Company had entered into a binding letter of intent (the "LOI") with Forbes & Manhattan, Inc. ("F&M") whereby F&M, its affiliates and/or assigns would provide Niocan with the lead order for a private placement of 5,157,000 common shares of Niocan at a price of $1.15 per share. Discussions between the parties are ongoing and as a result, the Company has agreed to extend the exclusivity period to May 27, 2011 to allow for additional time to complete due diligence and negotiate a definitive subscription agreement.

About F&M

F&M is a leading merchant bank with a proven track record in managing, developing and operating iron ore and strategic minerals companies globally. F&M participated in the development of Consolidated Thompson Iron Mines Ltd. and the Bloom Lake deposit, resulting in a resource expansion, off-take arrangements with a strategic investor, commercial production and the subsequent sale to Cliffs Natural Resources Inc. F&M has also been involved in the management and development of Alderon Resource Corp. Alderon's Kami property is strategically located within the Labrador Trough in close proximity to Consolidated Thompson's Bloom Lake mine, IOC's Carol Lake mine and Cliffs Natural Resources Scully mine. F&M has also been instrumental in the development of the Shymanivske and Zelenivske iron ore projects located in Krivoy Rog, Ukraine, which are 100% owned by Black Iron Inc.

About Niocan

Niocan's mission is to become a ferroniobium producer as soon as possible, following the issuance of a Certificate of Authorization from the Ministry of Sustainable Development, Environment and Parks for its Oka niobium property. Mining assets include mining rights in two (2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and the Hudson Bay Great Whale Iron property covering 17,098 acres.

2000 rue Peel, bureau 760
Montréal (Québec) H3A 2W5
Tel: (514) 288-8506
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On behalf of the Board of Directors

FORWARD LOOKING STATEMENTS

Certain statements contained in this press release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to the issuance by the Ministry of Environment of the Certificate of Authorization to build the mine in Oka, financial resources, market prices, exchange rates, politico-social conflicts, competition, the purchase of the old St-Lawrence Columbium mine site from the Municipality of Oka should the Certificate of Authorization be issued, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk and Uncertainties Section of the Corporation's most recent Management's Discussion and Analysis, which may be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.