Lysander completes $11.5-million offering

Lysander Minerals Corp (C:LYM)
Shares Issued 69,048,797
Last Close 10/7/2010 $0.295
Friday October 08 2010 - News Release

Mr. Bryce Porter reports

LYSANDER CLOSES UNIT FINANCING OF $11.5 MILLION

Lysander Minerals Corp. has closed, subject to applicable regulatory approvals, a private placement offering (the "Offering") of 54,797,425 units (the "Units") priced at $0.21 per unit for gross proceeds of approximately $11,500,000. Each Unit consists of one common share (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.30 per share until October 7, 2011. All securities issued as part of the Offering will be subject to a four-month hold period expiring on February 8, 2011.

Salman Partners Inc. acted as agent for the Offering. Approximately $4,350,000 of the Offering was non-brokered.

The net proceeds from the Offering will facilitate the ongoing advancement of the Company's Verticalnaya anthracite project in the Donbass coal basin of south-eastern Ukraine.

The Executive Chairman of the Company, Mr. John Byrne, commented: "Lysander now has in place a structure for the financing of the re-opening of the Verticalnaya mine. We are confident that the warrants will be exercised in a timely manner so that the Company will fully equity fund the Verticalnaya North project in line with the NI 43-101 technical report for that project. We will now look at ways to accelerate production and examine other opportunities presented to the Company. It is our aim to become a major Ukrainian coal mining company."