Melkior closes $1.2-million private placement

Mr. Keith Deluce reports

MELKIOR RESOURCES ANNOUNCES CLOSE OF PRIVATE PLACEMENT OF UNITS

Melkior Resources Inc. has closed the non-brokered private placement for total gross proceeds of $1.2-million. The private placement consisted of 20 million units at a price of six cents per unit. Each unit comprised one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share of the company for a period of 36 months at a price of 8.5 cents.

Two insiders of the company participated in the private placement and subscribed for an aggregate of 7.05 million units for aggregate gross proceeds of $423,000. Participation of an insider of the company in the private placement constitutes a related party transaction as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. Because the company’s shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.

All securities issued under the private placement are subject to a four-month hold period.