Mr. Robert Bick reports

PRIMA FLUORSPAR CORP. CLOSES PRIVATE PLACEMENT; IN FINAL NEGOTIATION TO ACQUIRE THE PAST PRODUCING DELGERKHAAN FLUORSPAR MINE

Prima Fluorspar Corp. has closed the second tranche of a non-brokered private placement. The first tranche consisted of 750,000 units (not 5.75 million as previously announced) and the second tranche consisted of 2.4 million units, for a total of 3.2 million units at 10 cents per unit for gross proceeds of $320,000. Each unit consists of one common share of the company and one common share purchase warrant.

Each warrant entitles the holder to purchase one common share of the company at a price of 15 cents per share for a period of two years from closing.

All of the securities issued are subject to a four-month hold period, and may be subject to certain escrow provisions as required by the regulatory authorities and the TSX Venture Exchange. Finders' fees are payable in connection with this transaction of $1,200 cash and 12,000 warrants exercisable at 15 cents for two years from closing.

Prima is in the process of final negotiation of a share exchange agreement to acquire Delgerkhaan, a prolific, past-producing fluorspar mine in Mongolia owned by funds affiliated with Firebird Management LLC via a reverse takeover transaction (see Prima's Sept. 3, 2013, news release). Proceeds will be primarily dedicated to the reverse takeover transaction, for continued work on the company's Liard fluorspar property and for general corporate purposes.

Firebird Management LLC

Firebird, a New York-based fund management company registered with the U.S. Securities and Exchange Commission, manages several of the top-performing funds globally with a focus on emerging markets. Firebird has been working in Mongolia for over eight years and has significant infrastructure on the ground, including an affiliated 50-person office in the Mongolian capital, Ulan Bator. Sharyn Gol JSC, a Firebird-controlled Mongolian coal producer, recently entered into a $10-million loan facility from the European Bank for Reconstruction and Development (EBRD) to supply washed coal and smokeless fuel briquettes to industrial consumers and households in Ulan Bator.

Mongolia and the resource sector

Mongolia is rich in fluorspar with 139 fluorspar deposits and 700 identified fluorspar prospects. Resources account for 80 per cent of Mongolia's exports and 50 per cent of its revenue. Mongolia new liberal investment law took effect Nov. 1, 2013. The law demonstrates the Mongolian government's commitment and support for foreign resource investment.

About Prima and the reverse takeover transaction

Upon completion of the reverse takeover transaction, Prima will be positioned as a significant fluorspar company with near-term production and cash flow potential. At that point, Firebird will be Prima's major shareholder, and James Passin, Firebird's fund manager will become the chair of Prima's board of directors.

We seek Safe Harbor.