Mr. Anthony Paterson reports

DISTRICT MINES LTD. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

District Mines Ltd. has arranged a non-brokered private placement of up to 10 million units of the company at a price of five cents per unit for gross proceeds of up to $500,000. Each Unit will consist of one common share of the Company (each, a "Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share at a price of $0.075 for a period of twelve (12) months from the closing of the Offering.

Certain insiders of the Company may participate in the Offering. Any participation by insiders in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on exemptions from the formal valuation and minority approval requirements of sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination that fair market value of the participation in the Offering by insiders will not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

All securities issued pursuant to the Offering are subject to a hold period of four months and a day from the date of the closing. The net proceeds from the Offering are intended to be used for working capital purposes and repayment of debt. Completion of the Offering is subject to final TSX Venture Exchange ("TSXV") approval.

We seek Safe Harbor.