TORONTO, ONTARIO--(Marketwire - Aug. 19, 2011) - On June 29, 2011, Niocan Inc. ("Niocan" or the "Company") (News - Market indicators) announced that the Company had entered into a binding term sheet with Nio-Metals Holdings LLC ("Nio-Metals") pursuant to which Nio-Metals has agreed to purchase by way of private placement a minimum of 2,000 units (each, a "Unit") and a maximum of 4,000 Units at an issue price of $1,000 per Unit, representing aggregate gross proceeds to the Company of a minimum of $2 million and a maximum of $4 million (the "Private Placement"). The Company has received interest from additional investors in participating in the Private Placement and expects to raise gross proceeds of between $3 million and $4 million. The Company expects the following changes to the terms of the previously announced private placement:

• each Unit would be comprised of one $1,000 principal amount of secured debenture ("Debenture") and 520 transferable common share purchase warrants of Niocan (each, a "Warrant"), which represents an increase in the numbers of Warrants comprising one Unit from 370 Warrants;

• each Warrant would expire on the day that is 3 years from the date of the issuance of the Warrant, rather than 2 years; and

• each Debenture would bear interest at a rate of 12% per annum, as opposed to 10%.

To facilitate the inclusion of the additional investors and the process for obtaining regulatory approval, the Company and Nio-Metals have agreed to extend the closing date to no later than August 26, 2011 and the Company expects the closing to take place on that date.

About Niocan

Niocan's mission is to become a ferroniobium producer as soon as possible, following the issuance of a Certificate of Authorization from the Ministry of Sustainable Development, Environment and Parks for its Oka niobium property. Mining assets include mining rights in two (2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and the Hudson Bay Great Whale Iron property covering 17,098 acres.

On behalf of the Board of Directors

FORWARD LOOKING STATEMENTS

Certain statements contained in this press release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to the issuance by the Ministry of Environment of the Certificate of Authorization to build the mine in Oka, financial resources, market prices, exchange rates, politicosocial conflicts, competition, the purchase of the old St-Lawrence Columbium mine site from the Municipality of Oka should the Certificate of Authorization be issued, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk and Uncertainties Section of the Corporation's most recent Management's Discussion and Analysis, which may be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.