arranges brokered financing with D&D Securities

cnw




/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/


MONTREAL, Dec. 6 /CNW Telbec/ - Blue Note Mining Inc. (TSXV: BNT) ("Blue
Note" or the "Company") is pleased to announce that, given the success
of last summer's drill campaigns at its Croinor and Chimo gold
projects, it will undertake an aggressive drill campaign aimed at
increasing the resources.


At Croinor, Blue Note plans a 20,600 meter drill campaign in early 2011
to increase mineral resources within the current resource blocks,
laterally and at depth. The recent seven hole drill program intersected significant gold grades and
widths located in close proximity to planned development, clearly
demonstrating the potential to expand the reserves. Values returned
from the seven holes included 11.81 g/t Au over 7.5 meters, 10.50 g/t
Au over 6.7 meters, 29.3 g/t Au over 5.7 meters with values as high as 78.15 g/t Au over 1 meter (see news releases of October 18 and November
11, 2010).


At Chimo, Blue Note plans a 12,500 meter drill campaign to establish an
economically viable gold resource based on results from last summer's
drill campaign, compilation of historical data, and new geophysical
exploration techniques. Last summer's program of three holes confirmed
the extension of previously identified but unexplored gold bearing
mineralized zones, demonstrating the continuity near surface as well as
the potential to develop resources beyond the historical mine workings
of the Chimo mine (see news release of October 4, 2010). The Chimo gold
deposit is contemplated to complement future production from the
Croinor project.


Brokered Financing


Blue Note announces that it has entered into a brokered private
placement agreement with D&D Securities Inc. ("D&D") whereby D&D will
act as lead agent in a prospectus exempt private placement of (i) up to
a maximum of $3.5 million of flow-through shares, and (ii) up to a
maximum of $1.5 million of units ("Units") of Blue Note (the "Private
Placement"). The flow-through shares will be priced at $0.15 per share
and the Units will be priced at $0.12 per share. Each Unit would
consist of one common share and one common share purchase warrant. Each
whole warrant would entitle the holder to acquire one common share at
$0.25 for a period of 24 months following the closing of the Private
Placement. In the event that the common shares of Blue Note trade at
$0.40 or higher (on a volume weighted adjusted price) for a period of
15 days after the date that is 4 months from closing, Blue Note will
have the option to accelerate the expiry date of the warrants to 30
days from notice to warrants holders of such accelerated expiry date.


Blue Note will pay D&D a fee equal to 7% of the aggregate gross proceeds
of the Private Placement at closing. In addition, Blue Note will issue
D&D broker warrants to purchase that number of common shares of the
Company that is equal to 7% of the number of shares subscribed for by
investors under the Private Placement. Each broker warrant will be
exercisable into one common share at $0.20 at any time prior to the
date that is eighteen (18) months from closing.


It is anticipated that the Private Placement will be completed on or
about December 15, 2010. Closing of the Private Placement is subject to
certain conditions, including regulatory approval. The common shares
and the flow-through common shares will be subject to a four-month hold
period.


The net proceeds from the Private Placement of the common shares shall
be used for working capital and for general corporate purposes.
Proceeds from the Private Placement of the flow-through shares will be
used to finance the drill campaigns at Blue Note's Croinor and Chimo
projects, which will constitute Canadian exploration expenses (as
defined in the Income Tax Act (Canada)) and will be renounced for the 2010 tax year.


John Martin, P. Eng., President and Chief Operating Officer of Blue Note
Mining Inc., is a Qualified Person as defined under NI 43-101
guidelines and has reviewed the technical information contained in this
press release.


About Blue Note Mining


Blue Note Mining is a mineral exploration and mining company
headquartered in Montreal with properties located in known gold regions
of Canada, including the prolific Val-d'Or region of Quebec and
northern New Brunswick. Blue Note's top priority is to develop the
Croinor gold property.


Forward-Looking Statements


This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that
involve risks and uncertainties. Such statements include those with
respect to the drilling program set forth above and the Company's
ability to raise funds under the Private Placement. Although the
Company believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no
assurances that its expectations will be achieved. Such assumptions,
which may prove incorrect, include the following: (i) Blue Note will be
successful in its efforts to complete the drilling program described in
this news release, (ii) D&D will fulfill its contractual obligations to
complete the Private Placement on a "best-efforts" basis, (iii) D&D
will be successful in its efforts to identify subscribers under the
Private Placement, (iv) the subscribers under the Private Placement
will complete the subscriptions they have agreed to make under their
subscription agreements, (v) Blue Note's management will not identify
and pursue other business objectives using the proceeds of the Private
Placement and (vi) the price of gold will remain sufficiently high and
the costs of advancing the Company's gold projects sufficiently low so
as to permit Blue Note to implement its business plans in a profitable
manner. Factors that could cause actual results to differ materially
from expectations include (i) the inability or unwillingness of the
subscribers under the Private Placement or of D&D to fulfill their
contractual obligations, in whole or in part, (ii) the Company's
failure to make effective use of the proceeds of the Private Placement,
(iii) the failure of the drilling projects set forth above, for
technical, logistical, labour-relations or other reasons, (iv) the
Company's inability to obtain the necessary regulatory approvals for
the Private Placement, (v) a decrease in the price of gold below what
is necessary to sustain the Company's operations, (vi) an increase in
the Company's operating costs above what is necessary to sustain its
operations, (vii) accidents, labour disputes or the materialization of
similar risks, (viii) a deterioration in capital market conditions that
prevents the Company from raising the funds it requires on a timely
basis and (ix) generally, the Company's inability to develop and
implement a successful business plan for any reason. These factors and
others are more fully discussed in the Company's filings with Canadian
securities regulatory authorities available at >www.bluenotemining.ca