Vancouver, BC, Canada – January 20, 2012
Non-Brokered Private Placement
The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons without registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of such securities in the United States of America.
Mineral Hill Industries Ltd. (the “Company” or “MHI”) wishes to announce that it will use its best efforts to sell by private placement of up to 3,125,000 units at $0.16 per unit (“Unit”) for total proceeds of up to $500,000. Each Unit will comprise one common share and one transferable common share purchase warrant. Each transferable common share purchase warrant is exercisable for one additional common share at $0.22 per share if exercised on or before the first year from the date of issue or $0.35 per share, if exercised during the second year from the date of issue. The Company will apply the proceeds from the private placement towards its program for the Liberty Hill Gold Mine project and working capital to fund ongoing operations.
Certain directors and officers of the Company may acquire units under the private placement. Any such participation would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration paid by such persons will exceed 25% of the Company’s market capitalization. This private placement is subject to regulatory approval.
As announced on January 10, 2012, MHI has resumed talks with Ascot Mining PLC (“Ascot”) which has indicated that it will provide a back stop of up to $450,000 for any unsubscribed portion of the private placement. Ascot is a junior mining and exploration company which currently operates in Costa Rica and is aggressively pursuing advanced stage opportunities in the gold exploration and production development sector.
About Mineral Hill Industries Ltd.
Mineral Hill Industries Ltd. is a Canadian based mineral exploration company trading on the TSX Venture Exchange (MHI), the Frankfurt Exchange (N8Z/WKN: AODLHP), and the OTC Pink Sheets (MHIFF). Mineral Hill has accumulated a diversified portfolio of lithium and precious metal properties. Although the Company’s determination to develop its promising lithium exploration projects will remain a focal point, Mineral Hill’s accelerated effort will be the permitting and development of its Liberty Hill Mine gold exploration and production project in the United States, and attracting a strong mining and management team.
For further information, please visit www.mineralhill.com or contact:
President & CEO
Telephone: (604) 685-4170
Neither the 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.