Mr. Joseph Lanzon reports

SEARCH MINERALS ANNOUNCES SHARES-FOR-DEBT TRANSACTION

Search Minerals Inc. has entered into a transaction with LeadFX Inc. to settle an aggregate of $404,053.73 of outstanding indebtedness through the issuance of 808,107 common shares of the company at a deemed price of 50 cents per share. The company had previously announced that it would convert the debt into a fixed-term unsecured convertible loan by LeadFX to the company, but it has been determined to complete the shares-for-debt transaction to eliminate the debt instead.

The shares-for-debt transaction is being undertaken by the company to preserve cash and strengthen its balance sheet. The shares issued pursuant to the shares-for-debt transaction will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws and TSX Venture Exchange policies.

Insider participation

LeadFX is a related party of the company. Accordingly, the issuance of shares to LeadFX constitutes a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions).

The company is relying on the exemptions from the formal valuation requirement under Section 5.5(b) of MI 61-101 and the minority shareholder approval requirement under Section 5.7(a) of MI 61-101, as the fair market value of the shares to be issued to the related party does not exceed 25 per cent of the company's market capitalization.

No new control person will be created as a result of the shares-for-debt transaction.

TSX Venture Exchange approval

Completion of the shares-for-debt transaction remains subject to the approval of the TSX-V.

About Search Minerals Inc.

Search Minerals is focused on exploring for and developing critical rare earth elements, as well as transition metals zirconium and hafnium within the emerging Port Hope Simpson-St. Lewis CREE district of southeastern Labrador. The company controls two deposits (Foxtrot and Deep Fox), two drill-ready prospects (Fox Meadow and Silver Fox), and numerous other CREE prospects, including Fox Valley, Foxy Lady and Awesome Fox, along a 64-kilometre-long belt forming a CREE district in Labrador.

Search Minerals also controls additional CREE assets in the Red Wine CREE district of central Labrador. These include: the drill-ready Two Tom Lake CREE-Be-Nb deposit, the Mann No. 1 CREE-Nb-Be prospect and the Merlot CREE prospect.

We seek Safe Harbor.