Mr. Gabi Kabazo reports

STARMET VENTURES ANNOUNCES CONVERTIBLE DEBENTURE FINANCING

Starmet Ventures Inc. intends to complete a non-brokered private placement of unsecured convertible debentures. The company expects to raise aggregate gross proceeds of up to $4-million under the offering.

The debentures issued in the offering will bear interest at a rate of 10 per cent per annum, calculated monthly and payable annually in cash or accrued for conversion of the conversion price (as defined below). The debentures will mature on the earlier of: (a) the two-year anniversary following the date of issuance; or (b) the date the company's securities begin trading on Nasdaq. The company may elect to prepay all or a part of the principal amount and accrued interest without penalty, subject to the company providing 14 days notice to the holders of the debentures of such prepayment.

The outstanding principal amount owed under a debenture may be converted into units of the company, each composed of one common share in the capital of the company and one common share purchase warrant exercisable at a price of 40 cents per common share for a period of 24 months from the issuance date of the unit, at a conversion price of 35 cents per unit by the holder thereof at any time on or before the maturity date. On the maturity date, the holders of the debentures may convert the outstanding principal amount, together with any accrued and unpaid interest thereon, into units at the conversion price.

The company intends to use the proceeds from the offering for general working capital purposes.

In connection with the offering, the company may pay a finder's fee to certain qualified arm's-length parties a cash finder's fee equal to 8 per cent of the gross proceeds raised and a number of common shares equal to 12.5 per cent of the number of units issued upon conversion of the debentures placed by such finder.

All securities issued in connection with the offering will be subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws. The offering is subject to approval by the Canadian Securities Exchange and the filing of all required documentation. The company anticipates closing the offering in one or more tranches following receipt of necessary approvals.

About Starmet Ventures Inc.

Starmet's principal business activities include the exploration of mineral resource properties with an emphasis on the property located in Esmeralda county, Nevada. Starmet's objective is to identify and develop economic mineral resource properties of merit and to conduct exploration programs thereon.

We seek Safe Harbor.