Probe Mines closes $3.5-million equity financing

2007-11-06 10:54 ET - News Release

Dr. David Palmer reports

PROBE MINES ANNOUNCES CLOSING OF $3,500,000 NON-BROKERED PRIVATE PLACEMENT

Probe Mines Ltd. has closed the non-brokered private placement financing as announced in Stockwatch on Oct. 22, 2007, and Oct. 25, 2007, for gross proceeds of $3.5-million consisting of the sale of 4,667,000 units sold at 75 cents per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $1.00 from Nov. 6, 2007, until Nov. 6, 2009, provided, however, that should the closing price at which the common shares trade, equal or exceed $1.75 for 20 consecutive trading days following the date that is four months and one day after the closing date, Probe may accelerate the warrant term to the date which is 30 days following the date a press release is issued by Probe in Stockwatch announcing the reduced warrant term. All securities were issued in conjunction with the offering are subject to a hold period, which expires on March 7, 2008. In conjunction with this financing, a cash payment in the amount of $150,000 (U.S.) and 200,000 finder warrants were issued to finders. Each whole finder warrant entitles the holder to acquire one common share for 75 U.S. cents per share until Nov. 6, 2009. Upon completion of this financing Probe has 29,994,473 shares issued and outstanding and 4,821,001 shares reserved for the grant of stock options and warrants.

Proceeds of the financing will be used to finance exploration on the company's McFauld's Lake properties, including the 100-per-cent-owned McFauld's Lake West project, located approximately 450 metres from Noront Resources' recent high-grade nickel-copper-PGE (platinum group element) discovery, and the 100-per-cent-owned Victory project, which hosts numerous untested drill targets in a volcanic belt attached to the McFauld's Lake belt. Exploration on the McFauld's Lake properties will include a program of magnetic and electromagnetic geophysical surveys followed by diamond drilling. Drilling will initially focus on the McFauld's West property, where regional government magnetic data show the presence of two anomalies within the claims that are similar in size and shape to that associated with Noront's discovery. Management is encouraged by both the properties proximity to this significant discovery and the presence of the magnetic anomalies, and is currently negotiating contracts to begin fieldwork.

We seek Safe Harbor.