Mr. Mark Haywood reports

EDM ANNOUNCES CLOSING OF $1M NON-BROKERED PRIVATE PLACEMENT

EDM Resources Inc. has closed its previously announced non-brokered private placement financing for aggregate gross proceeds of $1.0-million.

The president and chief executive officer Mark Haywood stated: "EDM is pleased to announce the closing of this $1-million financing. Net proceeds of the offering will be used to complete the Fisheries Act Authorization Application for our Scotia mine and for general working capital purposes."

The offering consisted of 9,090,909 units of the company at a price of 11 cents per unit for gross proceeds of $999,999.99, each unit consisting of one common share of the company and one share purchase warrant entitling the holder to purchase one common share of the company at a price of 14 cents for each warrant share, until Dec. 12, 2028. The company will use the net proceeds from the offering for environmental work at its wholly owned Scotia mine, located 60 kilometres north of Halifax (the Scotia mine), and for general working capital purposes.

If the company's common shares trade at or above a volume-weighted average trading price of 30 cents per common share for 10 consecutive trading days, the company may accelerate the expiry time of the warrants to 30 days from the date on which the company provides written notice to the holders of the warrants.

Certain directors, officers and other insiders of the company have acquired a total of 1,765,455 units in the offering. The participation of insiders constitutes a related party transaction, as such term is defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 which apply to related party transactions as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101).

In connection with the offering, the company has paid $16,016.00 in cash compensation and issued 145,600 broker warrants to eligible brokers for their assistance with the offering. Each broker warrant is exercisable for one common share of the company at a price of 14 cents per share until Dec. 12, 2028.

About EDM Resources Inc.

EDM is a Canadian exploration and mining company that has full ownership of the Scotia mine and related facilities near Halifax, N.S. Through its wholly owned subsidiary, EDM also holds several prospective exploration licences near its Scotia mine and in the surrounding regions of Nova Scotia.

The company's common shares are traded on the TSX Venture Exchange under the symbol EDM and the Frankfurt exchange under the symbol P3Z.

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