Whitemud Resources Inc.
TSX VENTURE : WMK

Whitemud Resources Inc.

February 27, 2007 09:15 ET

Whitemud Provides Update on the Closing of Its $50,000,000 Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Feb. 27, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Whitemud Resources Inc. ("Whitemud" or the "Company") (TSX VENTURE:WMK) is pleased to announce that it expects to close its initial public offering ("IPO") of 6,250,000 common shares (the "Common Shares") at a price of $8.00 per Common Share for total gross proceeds of $50,000,000 on February 28, 2007. The Common Shares of Whitemud are expected to commence trading following closing on the TSX Venture Exchange, under the trading symbol "WMK".

The syndicate is being led by Westwind Partners Inc. and includes Dundee Securities Corporation, HSBC Securities (Canada) Inc. and MGI Securities Inc. (collectively, the "Agents").

In connection with the IPO, the Company has also granted the Agents an option (the "Over-Allotment Option"), exercisable in whole or in part, for 30 days following closing, to purchase up to 15% of the number of Common Shares at the offering price, to cover over-allotments, if any, and for market stabilization purposes. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the IPO will be $57,500,000.

The net proceeds from the IPO will be used to partially fund the construction of a metakaolin processing plant, the development of a kaolin mine/quarry, debt repayment, and for general corporate purposes.

Whitemud is committed to becoming the leading manufacturer and supplier of metakaolin for the North American construction cement and concrete and oilfield cement industries. The Company was founded in 2002, inspired by the discovery of a unique manufacturing process that would allow for the economic use of metakaolin as an additive to concrete. Whitemud has secured leases for one of the largest deposits of kaolin in North America near Wood Mountain in southern Saskatchewan, 165 kilometres southwest of Regina, and 40 kilometres north of the US border.

The officers of Whitemud are: Burl Aycock, Chief Executive Officer; Kelly Babichuk, President and Chief Operating Officer; Ron Love, Vice-President, Finance and Chief Financial Officer; Chris Gagnon, Vice-President, Manufacturing; Kevin Graham, Vice-President, Marketing; Robert Martin, Vice-President, Logistics; and Robin Phinney, Vice-President, Engineering. In addition to Mr. Aycock and Mr. Babichuk, the board of directors of Whitemud includes Don Douglas, Barry Lester and David Stenason.

Following the IPO, Whitemud will have 15,358,300 Common Shares outstanding, including 4,671,600 Common Shares held in escrow.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Whitemud in any jurisdiction. A copy of the final prospectus may be obtained from SEDAR (www.sedar.com).

The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "estimate", "believe", "likely", "will", or estimates of business activity, and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Whitemud to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Whitemud Resources Inc.
    Ron Love
    Vice-President, Finance and Chief Financial Officer
    (403) 517-0040
    or
    Whitemud Resources Inc.
    Kevin Graham
    Vice-President, Marketing
    (403) 517-0040