Lux Metals arranges $2.5-million private placement

Mr. Carl Ginn reports LUX METALS ANNOUNCES $2,500,000 PRIVATE PLACEMENT, DEBT SETTLEMENT AND MARKET MAKER AGREEMENT Lux Metals Corp. has proposed to undertake a private placement of 12.5 million units of the company at a price of 20 cents per unit for total gross proceeds of $2.5-million. Each unit will consist of one common share and one transferable share purchase warrant, each warrant exercisable into one additional share for a period of two years from date of issue at a price of 40 cents per share. If, after all regulatory holds on the warrants expire and the shares trade on the TSX Venture Exchange at a price of 60 cents or more for 10 consecutive trading days at any time, then the warrants will expire, subject to the company's discretion, on the earlier of the expiry date and 4:30 p.m. Vancouver time on the date which is 30 calendar days after the company provides notice by way of a news release to the holders of the warrants that the acceleration event has occurred. The gross proceeds from the issuance of the units will be used for exploration costs and general working capital. The company may pay finders' fees composed of cash and/or non-transferable warrants in connection with the placement, pursuant to the policies of the TSX-V and applicable securities laws. The company anticipates closing of the placement (in one or more tranches) as soon as practicable subject to receipt of all necessary regulatory approvals, including the approval of the TSX-V. All securities issued under the placement will be subject to applicable regulatory holds expiring four months and one day from the date of issue. The company also announces that it has agreed, subject to the acceptance of the TSX-V, to settle $107,000 worth of debt to non-arm's-length parties by the issuance of 535,000 shares of the company at a deemed price of 20 cents per share. All shares issued under the debt settlement will be subject to a hold period expiring four months and one day from the date of issue. The company also advises that, subject to regulatory approval, it has retained Venture Liquidity Providers Inc. to initiate its market-making service to provide assistance in maintaining an orderly trading market for the shares of the company. The market-making service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Ltd., in compliance with the applicable policies of the TSX-V and other applicable laws. For its services, the company has agreed to pay VLP $5,000 per month for a period of three months. The agreement may be terminated at any time by the company or VLP. The company and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in the company or its securities. The finances and the shares required for the market-making service are provided by W.D. Latimer. The fee paid by the company to VLP is for services only. VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX-V-listed issuers. We seek Safe Harbor.