Mr. Paul Wood reports

BTU ANNOUNCES FLOW THROUGH FINANCING

BTU Metals Corp. has arranged a non-brokered private placement of up to 12 million flow-through shares at a price of five cents per FT share for aggregate gross proceeds of up to $600,000.

The FT shares will entitle the holder to receive the tax benefits applicable to flow-through shares in accordance with provisions of the Income Tax Act (Canada). The proceeds from the sale of the FT units will be used to advance the company's Ontario portfolio of projects, including the newly acquired Dixie East project.

Each flow-through unit shall be composed of one common share of the company issued on a flow-through basis and one-half of one common share purchase warrant to be issued on a non-flow-through basis. Each whole warrant shall entitle the holder thereof to acquire one common share of BTU at a price of nine cents for a period of 12 months following the closing of the offering. The flow-through shares will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec).

Finders' fees will be payable. Closing of the offering is subject to approval of the TSX Venture Exchange. The securities issued under the offering, and any shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.

About BTU Metals Corp.

BTU Metals is a junior mining exploration company. BTU's primary assets are the Dixie Halo project located in Red Lake, Ont. (optioned to Kinross), immediately adjacent to the Kinross Great Bear project, the Dixie East project, and its gold and critical mineral properties in the active Wawa gold district. The company continues to look to acquire high-quality exploration projects to add to its portfolio for the benefit of its stakeholders. The company has no debt and minimal property obligations.

We seek Safe Harbor.