Niocan Announces Response to Financing Proposal from Augyva Mining Resources Inc.

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Posted on June 23, 2011

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Niocan Announces Response to Financing Proposal from Augyva Mining Resources Inc.

Toronto, Ontario, June 23, 2011: Niocan Inc. (“Niocan” or the “Company”) (TSX-NIO)
acknowledged today that the Company has received a financing proposal (the “Proposal”) from
Augyva Mining Resources Inc. (“Augyva”) whereby Augyva proposes to subscribe for
3,478,260 units (the “Units”) of Niocan at a price of $1.15 per Unit, with each Unit consisting of
one common share and one-half of one (½) common share purchase warrant of the Company.
The Proposal is conditioned on Augyva representatives being granted three out of the
Company's four Board seats.

After consultation with its financial and legal advisors, the Special Committee has concluded
that the Proposal is inadequate and not in the best interests of Niocan and its shareholders for
the following reasons:

  • the Proposal seeks to provide Augyva control of Niocan through a relatively small

investment without any consideration or premium to be received by Niocan

  • Augyva seeks exclusivity in connection with the Proposal at a time when the Special

Committee is in negotiations with other third parties relating to strategic alternatives; and

  • the Proposal in its current form will require shareholder approval and therefore cannot

be completed by June 29, 2011 as proposed by Augyva.
The Special Committee continues to evaluate various strategic alternatives and is committed to
selecting one that maximizes value and is in the best interests of all shareholders.

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