TSX Venture Trading Symbol SRM
CORPORATE NEWS RELEASE
Shear Minerals Ltd. Announces Private Placement Offering
July 21, 2008
EDMONTON, Alberta - Shear Minerals Ltd. (SRM:TSXV) (?Shear?) today announced that it will be offering on a non-brokered private placement basis (the ?Offering?): (a) units (?Units?) at a price of $0.30 per Unit; and (b) flow-through common shares of Shear (?FT Shares?) at a price of $0.30 per FT Share, for aggregate gross proceeds of $1,000,000. Each Unit will consist of one common share of Shear (?Common Share?) and one-half of a non-transferable share purchase warrant (?Warrant?). Each whole Warrant will entitle the holder to acquire an additional Common Share at a price of $0.40 at any time within 18 months of issuance. Insiders of Shear may participate in the Offering.
The Units and FT Shares will be offered to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable jurisdictions. The Offering is subject to certain conditions, including regulatory approval. The proceeds from the sale of FT Shares will be used to incur expenditures which qualify as Canadian Exploration Expenses and will be spent primarily on Shear?s Churchill Diamond Project in Nunavut and the Rattlesnake Potash Property in Alberta.
Subject to approval by the TSX Venture Exchange and applicable securities legislation, Shear may pay a cash finder?s fee and/or issue non-transferable share purchase warrants to acquire Common Shares brokers or other third parties (a ?Finder?) in respect of sales made to purchasers referred to Shear by a Finder.
Shear is a Canadian-based exploration company focused on Diamond exploration in the Canadian North, where it explores in established Diamond districts and has discovered new ones. Shear currently has a portfolio of eight Diamond projects, seven of which are drill-ready. Shear has advanced its flagship Churchill Diamond Project from a conceptual idea to an expanding Diamond district. Shear is the operator of, and owns a 58.14% undivided interest (the remaining 41.86% undivided interest is owned by Stornoway Diamond Corp.) in the Churchill Diamond Project, which is comprised of the Diamond rights to more than two million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly Diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tonne.
For further information please contact:
Pamela Strand, President and CEO.
Tel: (780) 435-0045; Fax: (780) 989-0322
www.shearminerals.com
E-Mail: info@shearminerals.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from either of the Companies? expectations are in Company documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Companies disclaim any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Shear Minerals Ltd.
Suite 100, 9797 - 45 Ave
Edmonton, AB T6E 5V8
Tel: (780) 435-0045; Fax: (780) 989-0322
www.shearminerals.com