RAB Special Situations (fka RAB)

[Ed Monton]

Ecstall units purchased by RAB Special Situations

2004-08-24 12:56 ET - News Release

EAM

Mr. Neil Warrender reports

RAB Special Situations L.P. has entered into a subscription agreement with Ecstall Mining Corp. pursuant to which it subscribed for a total of 2.7 million units of the company at a price of 10 cents per unit. Each unit consists of one common share of the company and one share purchase warrant. Each warrant entitles special situations to purchase one share for a period of two years from closing at a price of 20 cents per share.

The purchased securities represent approximately 17.73 per cent of the issued and outstanding shares on a partially diluted basis (assuming exercise of its warrants). Special Situations has ownership of and control over the securities purchased in the private placement.

Immediately after the private placement, Special Situations owned 2.7 million shares and 2.7 million warrants representing approximately 17.73 per cent of the issued and outstanding shares on a partially diluted basis.

Special Situations purchased units for investment purposes only and not with the purpose of influencing the control or direction of the company. Special Situations together with joint actors, if any, may, subject to market conditions, make additional investments in or dispositions of securities of the company in the future, including additional purchases of shares. Special Situations and its joint actors, if any, do not, however, intend to acquire 20 per cent of any class of the outstanding voting or equity securities of the company.