Ely Gold & Minerals Inc. ("Ely Gold" or the "Company") is
pleased to announce that it has arranged a non-brokered private
placement consisting of 5,131,150 shares at a price of CDN $0.10 per
share, for gross proceeds of US$500,000 (the "Offering"). Solitario
Exploration & Royalty Corp. (NYSE:XPL; TSX: SLR), "Solitario", the
Company's joint venture partner on the Mt. Hamilton project is the sole
subscriber. The Offering fulfills Solitario's Third Tranche funding
requirement as mandated by the Letter of Intent dated August 26, 2010
signed by Solitario and Ely Gold. The Mt Hamilton Gold project is held
by Mt Hamilton LLC ("MH LLC"), which is 80% owned by Solitario and 20%
owned by Ely Gold.
The Offering is subject to TSX Venture Exchange acceptance. All
securities issued pursuant to the Offering will be subject to a
four-month hold period from the closing date. All of the proceeds from
the Offering will go towards making the 2013 payment under the Share
Purchase Agreement, dated April 20, 2005 between the Company and Augusta
Resource Corporation (NYSE: AZC) for acquisition of the Mt. Hamilton
Subsequent to the offering, the Management Committee of MH LLC has
authorized a distribution of $250,000 from Partnership funds. These
funds will be distributed according to ownership in MH LLC resulting in a
$50,000 distribution to Ely Gold and a $200,000 distribution to
Solitario. In addition to the offering proceeds and the MH LLC
distribution, Ely Gold will pay $200,000 from its treasury for a total
Mt. Hamilton property payment of $750,000.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.