The Board of Excalibur Mining Corporation Limited (Excalibur)...

The Board of Excalibur Mining Corporation Limited (Excalibur) wishes to advise that it has
undertaken a private placement (Placement) of 1,000 million fully paid ordinary shares each
at an issue price of $0.01 to raise a total of $10,000,000. Of the total shares placed, 235
million shares will be issued pursuant to the Company’s 15% placement capacity with the
balance being subject to shareholder approval. A general meeting of shareholders is
expected to be called for early September 2009 for the purposes of considering this and
other matters.
The Placement was managed by Bell Potter Securities Limited and was made on a global
basis to a range of institutional, professional and sophisticated investors.
EXM’s Managing Director, Tim Lagdon said: “We are extremely pleased with the level of
response to the offering. The money raised properly capitalizes the Company and puts it in a
strong position to continue drilling of our Tennant Creek Project and complete the work
program which has been previously announced.”
Directors of the Company and related parties have committed $580,000 as part of the
Placement. Shareholder approval for directors' participation in the Placement will be sought
at the general meeting. The notice of the general meeting will include further information
on the placement to directors and related parties.
Proceeds from the Placement will be used for conducting further drilling of the Tennant
Creek Project including reserve drilling at Juno, completing engineering studies, permitting
and environmental studies and general corporate purposes. Excalibur’s plan is to complete
the work programme on Juno and satellite near surface deposits so that it will be in a
position by the end of 2010 to commit to development of the mine.
A copy of the Investor Presentation is attached.
At the general meeting approval will also be asked for a remuneration and incentive plan for
current and past directors. The plan comprises unlisted options and performance shares
which aligns director remuneration with shareholder gains. The options consist of 300
million unlisted options with an expiry date of 2014 and an exercise price of $0.04. The
performance shares will each be purchased at the greater of the price of the Placement (i.e.
$0.01/share) and an independent valuation. They will be issued in three tranches and
convert to ordinary shares upon achieving the milestones referred to in the table below
relating to EXM's share price. The issue of the performance shares will be funded by an
interest free, limited recourse loan from Excalibur which is not repayable until the
milestones are achieved. If the milestones are not achieved within the required time the
structure collapses. Full details of the incentive plan will be included in the notice of general
meeting.