TSX Venture

[million]

PRB.V --Probe Mines closes $2-million private placement


2008-02-12 08:57 ET - News Release

Dr. David Palmer reports

PROBE MINES CLOSES $2,000,000 NON-BROKERED PRIVATE PLACEMENT WITH THE MINERALFIELDS GROUP TO EXPLORE MCFAULD'S LAKE PROJECT

Probe Mines Ltd. has closed a non-brokered private placement financing with the MineralFields Group as announced in Stockwatch on Feb. 5, 2008. The private placement consisted of the sale of 2,666,666 flow-through units at 75 cents per unit for gross proceeds of $2-million. Each unit consisted of one flow-through 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 $1.50 until Feb. 7, 2010, provided, however, that should Probe's shares close on the TSX Venture Exchange for a period of 20 consecutive trading days at a price of $2.00 per share or higher during the exercise period, Probe may accelerate the expiry time to 30 calendar days from the date express written notice is provided by Probe to the holder by way of registered mail.

In connection with the financing, a finder was issued 105,333 units with a value of $79,000, or 75 cents per unit, and 210,666 non-flow-through finder options. Each finder option entitles the holder to acquire until Feb. 7, 2010, one common share and one common share purchase warrant exercisable on the same terms as the warrants at an exercise price of 75 cents per finder option. All securities issued in conjunction with the offering are subject to a hold period, which expires on June 8, 2008.

"We are very pleased to be continuing our relationship with MineralFields Group," said Dr. David Palmer, president and chief executive officer. "This is an important milestone in the growth of Probe Mines Ltd. and we look forward to working with MineralFields Group as we develop our holdings in the McFauld's Lake region."

Proceeds of the financing will be used to finance exploration on the company's McFauld's Lake West project, located immediately north of Noront Resources' high-grade nickel-copper-platinum group element (PGE) discovery in the McFauld's Lake area. The exploration program is described in detail in Probe's Jan. 30, 2008, news release in Stockwatch. Field operations are currently under way on the McFauld's West property with the ground grid established and mobilization of Insight Geophysics' field crews expected shortly. The geophysical program will be followed by diamond drilling.

The McFauld's West project is located immediately adjacent Noront Resources' Eagle One property where high-grade nickel-copper-PGE mineralization was discovered during this past summer. The most recent drilling intersection returned the highest-grade material to date averaging 6.25 per cent nickel, 2.75 per cent copper, 1.85 grams per tonne (g/t) platinum, 10.23 g/t palladium, 3.0 g/t gold and 10.3 g/t silver over 46.6 metres. Probe is encouraged by the proximity of the McFauld's West property to this significant discovery and believes there is a strong potential for the property to also host mineralization.

Dr. David Palmer, PhD, PGeo, is the qualified person for all technical information in this release.