Mr. Peter Dorrins reports

JUNEX ANNOUNCES PRIVATE PLACEMENT OF UP TO $22,000,000

Junex Inc. has arranged a proposed private placement in the total amount of up to $22-million, including $10-million that has been sourced by Junex.

The $10-million amount includes:

• An amount of $7.5-million to be raised through the issuance of units at a price of 90 cents each, each unit made up of one share and one-half of one common share purchase warrant; each whole warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months; this portion of the private placement is non-brokered;
• An amount of $2.5-million to be raised through the issuance of a Series A debenture and a Series B debenture, each in the principal amount of $1.25-million and convertible into common shares at a price of $1.17 per share; the debentures are also accompanied by a total of 1,388,888 warrants; each whole warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months; both debentures will mature after five years and bear interest at an annual rate of 12 per cent payable semi-annually; Junex may elect to pay up to 50 per cent of the interest charges in common shares, subject to the approval of the TSX Venture Exchange; at the option of the company, the Series A debenture will become automatically convertible at market price as soon as the company obtains a lease to produce petroleum with respect to its Galt project; the Series B debenture will be redeemable at all times at the company's option and will become convertible if and when Junex elects to so redeem it; this portion of the private placement is non-brokered.

The remainder of the private placement consists of:

• Up to $12-million to be raised through the issuance of units, each made up of one share and one-half of one common share purchase warrant; each whole warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months; of the $12-million, up to $7-million will be raised through the issuance of flow-through shares issued at $1.05 each and up to $5-million through the issuance of non-flow-through shares issued at 90 cents each; the company has retained D&D Securities Inc. and Octagon Capital Corp. to act on its behalf in connection with this aspect of the private placement, in consideration of a cash amount equal to 6 per cent of the gross proceeds raised via the flow-through shares and 7 per cent of the gross proceeds raised of non-flow-through shares, the whole subject to the execution of a final agent agreement between them.

Junex intends to use the proceeds of the private placement to finance its continuing exploration activities on the Galt project. This private placement is subject to the approval of the TSX-V. All securities issued under the private placement will be subject to a hold period of four months from the date on which they are issued.

We seek Safe Harbor.