Mr. Jeff Graw reports

LABRADOR RESOURCES LTD. ANNOUNCES PROPOSED PRIVATE PLACEMENT AND DEBT EXTENDING AGREEMENTS

Labrador Resources Ltd. intends to complete a private placement and has entered into agreements to extend the repayment of certain of its existing debt.

Proposed private placement

Labrador intends to complete a private placement of up to six million units for gross proceeds of up to $300,000. Each unit will be priced at five cents and will consist of one common share of the corporation and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at a price of six cents per common share for one year following closing of the offering and at a price of 10 cents per common share for an additional one year thereafter.

The corporation may pay commissions of 6 per cent to qualified finders or agents and may issue broker warrants for up to 6 per cent of the total number of units issued pursuant to the offering. Each broker warrant will entitle the holder to purchase a common share at a price of six cents for a period of two years from the date of closing of the offering.

There is no minimum offering.

Proceeds from the offering will be used for general working capital purposes and for expenses related to the offering.

The corporation will rely on the exemption for sales to purchasers advised by investment dealers. In that regard, the corporation confirms that there is no material fact or material change related to the corporation which has not been generally disclosed.

In addition to offering the units pursuant the exemption for sales to purchasers advised by investment dealers, the units are also being offered pursuant to other available prospectus exemptions, including sales to accredited investors. Unless the corporation determines to increase the gross proceeds of the offering, if subscriptions received for the offering based on all available exemptions exceed the maximum offering amount of $300,000, units will be allocated pro rata among all subscribers qualifying under all available exemptions.

The common shares, warrants and broker warrants that may be issued pursuant to the offering will be subject to a four-month-and-one-day hold period. completion of the offering remains subject to the approval of the TSX Venture Exchange.

Debt extending agreements

Labrador also announces that it has successfully negotiated extending agreements with the holders of a debenture, a note payable and a term loan.

The terms of the existing indebtedness will remain unchanged except as follows:

1. The maturity date has been extended to Oct. 31, 2027;
2. All amounts owing under the existing indebtedness will be convertible, at the holder's option, into common shares at a price of five cents per common share for the first one year following closing of the offering, and at a price of 10 cents for the following two years.

About Labrador Resources Inc.

Labrador's common shares are listed on the TSX Venture Exchange under the symbol LTX.

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