HOYT LAKES, MINNESOTA--(Marketwire - Sept. 2, 2009) - PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM) (the "Company") announced today that it has drawn the fourth tranche (the "Tranche D Debenture") of US$5 million under the US$50 million convertible debt facility with Glencore AG, which closed on October 31, 2008 (the "Facility"). To date, a total of US$25 million has been drawn under the Facility, and US$573,000 of interest has been capitalized.

The floating rate secured debentures due on September 30, 2011 (the "Debentures") have been issued by the Company's wholly-owned Minnesota subsidiary, Poly Met Mining, Inc. (the "Issuer"), and guaranteed by the Company, and secured by the assets of the Company and the Issuer, including a pledge of the Company's 100% shareholding in the Issuer. The Debentures bear interest at 12-month US dollar LIBOR (currently 1.61%) plus 4%. The principal amount of the Debentures is exchangeable into common shares of the Company at US$4.00 per share.

As part of the Facility, the Company previously issued to Glencore AG warrants to purchase 6,250,000 common shares of the Company, exercisable at US$5.00 per share prior to the start of commercial production. Upon exchange of the Tranche A Debenture issued on October 31, 2008 in the original principal amount of US$7.5 million, the Tranche B Debenture issued on December 24, 2008 in the original principal amount of US$7.5 million, the Tranche C Debenture issued on June 18, 2009 in the original principal amount of US$5.0 million, and this Tranche D Debenture, together with exercise of the above mentioned warrants and exchange of capitalized interest on the Tranche A, Tranche B, and Tranche C Debentures, Glencore AG would own approximately 12,643,000 shares of the Company, representing approximately 8.4% of the Company's issued capital on a partially-diluted basis.

The funds borrowed by the Issuer will be used to complete critical engineering work and the Environmental Impact Study for the Company's NorthMet project.