Update on Niocan's Private Placement Financing With Nio-Metals Holdings LLC

TORONTO, ONTARIO--(Marketwire - July 28, 2011) - Niocan Inc. ("Niocan" or the "Company") (TSX:NIO) announced that the Company had entered into a binding term sheet (the "Term Sheet") with Nio-Metals Holdings LLC ("Nio-Metals") pursuant to which Nio-Metals has agreed to purchase by way of private placement a minimum of 2,000 units (each, a "Unit") and a maximum of 4,000 Units at an issue price of $1,000 per Unit, representing aggregate gross proceeds to the Company of a minimum of $2 million and a maximum of $4 million (the "Private Placement"). As a result of ongoing discussions with additional potential investors and the process for obtaining regulatory approval, the Company and Nio-Metals have agreed to extend the closing date from July 29, 2011 to no later than August 5, 2011. The Company expects to complete the Private Placement on or before this date.

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.

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, politicosocial 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.