Niocan Announces Revised Terms of Private Placement Financing with Nio-Metals Holdings LLC

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Posted on August 19, 2011

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Niocan Announces Revised Terms of Private Placement Financing with Nio-Metals Holdings LLC

Toronto, Ontario, August 19, 2011: On June 29, 2011, Niocan Inc. (“Niocan” or the
“Company”) (TSX-NIO) announced that the Company had entered into a binding term sheet
with Nio-Metals Holdings LLC (“Nio-Metals”) pursuant to which Nio-Metals has agreed to
purchase by way of private placement a minimum of 2,000 units (each, a “Unit”) and a
maximum of 4,000 Units at an issue price of $1,000 per Unit, representing aggregate gross
proceeds to the Company of a minimum of $2 million and a maximum of $4 million (the “Private
Placement”). The Company has received interest from additional investors in participating in the
Private Placement and expects to raise gross proceeds of between $3 million and $4 million.
The Company expects the following changes to the terms of the previously announced private

  • each Unit would be comprised of one $1,000 principal amount of secured debenture

(“Debenture”) and 520 transferable common share purchase warrants of Niocan (each,
a “Warrant”), which represents an increase in the numbers of Warrants comprising one
Unit from 370 Warrants;

  • each Warrant would expire on the day that is 3 years from the date of the issuance of

the Warrant, rather than 2 years; and

  • each Debenture would bear interest at a rate of 12% per annum, as opposed to 10%.

To facilitate the inclusion of the additional investors and the process for obtaining regulatory
approval, the Company and Nio-Metals have agreed to extend the closing date to no later than
August 26, 2011 and the Company expects the closing to take place on that date.

About Niocan
Niocan’s mission is to become a ferroniobium producer as soon as possible, following the
issuance of a Certificate of Authorization from the Ministry of Sustainable Development,
Environment and Parks for its Oka niobium property. Mining assets include mining rights in two
(2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and
the Hudson Bay Great Whale Iron property covering 17,098 acres.
2000 rue Peel, bureau 760
Montréal (Québec) H3A 2W5
Tél: (514) 288-8506
Fax: (514) 843-4809

On behalf of the Board of Directors
For more information, please contact
Hubert Marleau
Interim Chairman of the Board and CEO
514-843-4809 (fax)
This email address is being protected from spambots. You need JavaScript enabled to view it.

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Published in 2011