TORONTO, ONTARIO--(Marketwire - May 30, 2011) - Peat Resources Limited (News - Market indicators) announces that it has closed the first tranche of thebrokered, best efforts, private placement announced on May 18, 2011, for proceeds in the first tranche of $60,000. The first tranche consists of 300,000 units @ $0.20 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for two years from the closing date at an exercise price of $0.20 per common share. The Agent, IBK Capital Corp., was paid a cash commission of 10% of the amount raised plus disbursements plus 10% of the gross proceeds in the form of broker's warrants exercisable for two years at $0.20.

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 resource evaluation of additional Newfoundland and Ontario properties.