Cline Mining investor Mitsui increases holdings

2008-07-07 12:18 ET - News Release

Ms. Linda Banner of Mitsui reports

PRESS RELEASE FOR IMMEDIATE RELEASE EARLY WARNING REPORT JUNE 7, 2008

Mitsui Matsushima International Pty. Ltd. has acquired 4.4 million common shares of Cline Mining Corp. and has entered into an agreement to acquire a further 4.5 million common shares of Cline.

Upon the acquisition of all 8.9 million common shares, Mitsui will hold a 22.13-per-cent interest in Cline. The common shares of Cline are listed on the Toronto Stock Exchange. Prior to the acquisition, Mitsui held, or exercised control or direction over, a total of nine million common shares, as well as warrants entitling it to acquire four million common shares and options to acquire 900,000 common shares. Based on Cline's most recently published issued and outstanding capital (76,385,275 common shares as at April 21, 2008, as reported in Cline's information circular dated April 22, 2008), the nine million common shares represented 11.78 per cent of the common shares then outstanding.

Pursuant to a share purchase agreement dated June 13, 2008, between Mitsui and ThyssenKrupp MinEnergy GmbH, Mitsui agreed to purchase from Thyssen a total of 8.9 million common shares at a price of $1.41 per common share. The purchase of an initial tranche of 4.4 million of these common shares has closed, and the purchase of a second tranche of 4.5 million common shares will close following the exercise by Thyssen of options and warrants to acquire an additional 4.5 million common shares from Cline. The exercise of the options and warrants and closing of the second tranche of the share purchase will happen as soon as practicable.

After giving effect to the acquisition of all 8.9 million common shares contemplated by the share purchase agreement, Mitsui will hold 17.9 million common shares, representing 22.13 per cent of the outstanding common shares (after increasing the number of common shares outstanding to reflect the issuance of the 4.5 million common shares by Cline to Thyssen upon the exercise of warrants and options held by Thyssen as contemplated in the share purchase agreement). Upon exercise and conversion of all of the outstanding warrants and options held by Mitsui (and assuming no disposition of common shares), Mitsui would hold a total of 22.8 million common shares, representing approximately 26.58 per cent of the outstanding common shares (after increasing the number of common shares outstanding to reflect the exercise of Mitsui's options and warrants and the issuance of the 4.5 million common shares by Cline to Thyssen upon the exercise of warrants and options held by Thyssen as contemplated in the share purchase agreement).

The common shares were acquired by Mitsui for investment purposes. Subject to availability, price, the general state of the capital markets and the financial condition of Cline from time to time, Mitsui may purchase or sell securities of Cline.