Mr. Michel Lemay reports

STELMINE CLOSES A $600,000 PRIVATE PLACEMENT

Stelmine Canada Ltd. has closed a private placement of $600,000.

The private placement consisted of 600 units at a price of $1,000 per unit, with each unit consisting of 20,000 common shares at a price of five cents per share, for a gross proceed of $600,000.

Three insiders participated to this private placement for gross proceeds of $195,000. Insiders of the company subscribed to 195 units offered under the private placement. The insiders' participation is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting protection of minority holders in special transactions, in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of the insiders' participation or the consideration paid by such insider does not exceed 25 per cent of the market value of the company. The company did not file a material change report at least 21 days prior to the completion of the private placement, since the insiders' participation was not determined at that moment.

In connection with this placement, the company will pay a finder's fee to an arm's-length party by the issuance of 595,200 common shares at a deemed price of five cents per share.

All securities issued pursuant to the private placement are subject to a four-month-and-one-day hold period. The private placement and the payment of the commissions are subject to the final approval of the TSX Venture Exchange.

Proceeds of this private placement will be applied toward short-term operating and working capital requirements.