TORONTO, ONTARIO--(Marketwire - May 18, 2011) - Peat Resources Limited (News - Market indicators) announces that it has engaged IBK Capital Corp. ("IBK" to complete a best efforts private placement of up to $1,000,000. The placement consists of 5,000,000 units @ $0.20 per unit. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant is exercisable for a period of two years from the closing date at an exercise price of $0.20 per common share. 

Subject to TSXV approval, IBK will be paid a cash commission of 10% of the amount raised and 10% of the amount raised in the form of non-transferable broker warrants. Each broker warrant is exercisable for two years from the closing date at an exercise price of $0.20 per common share. 

The proceeds of the placement will be used for working capital and for pre-feasibility engineering work on the Company's peat fuel pellet production system and for resource evaluation of additional Newfoundland and Ontario properties.