Mineral Hill Industries Ltd. - Non-Brokered Private Placement

    
    Trading Symbols:
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    TSX Venture Exchange: MHI
    Frankfurt Stock Exchange: N8Z/WKN: AODLHP
    Pink Sheets:   MHIFF
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    The securities being offered have not been, nor will be, registered under
    the United States Securities Act of 1933, as amended, and may not be
    offered or sold in the United States or to U.S. persons without
    registration or applicable exemption from the registration requirement of
    such Act. This release does not constitute an offer for sale of such
    securities in the United States of America.
    

VANCOUVER, Oct. 16 /CNW/ - Mineral Hill Industries Ltd. (the "Company" or "MHI") wishes to announce it will use its best efforts to sell by private placement of up to one million non flow-through units at $0.12 per unit ("Unit") for total proceeds of up to $120,000. Each Unit will be comprised of one common share and one transferable common share purchase warrant. Each warrant forming part of a Unit is exercisable for one additional common share for a period of two years from the date of closing. Each warrant will be exercisable for one additional common share at $0.15 per share if exercised during the first year and $0.20 per share if exercised during the second year.

The Company also wishes to announce that it will use its best efforts to sell by private placement up to four million flow-through units at $0.15 per share for proceeds of up to $600,000. Each Unit will be comprised of one flow-through common share and one transferable common share purchase warrant. Each warrant forming part of a Unit is exercisable for one additional common share for a period of one year from the date of closing. Each warrant will be exercisable for one additional non flow-through common share at $0.20 per share.

The Company will apply the proceeds from the private placement towards its existing projects, new acquisitions and working capital to fund ongoing operations.

Certain directors and officers of the Company may acquire units under the private placement. Any such participation would be considered to be a related party transaction as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.

This private placement is subject to regulatory approval.

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    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

SOURCE Mineral Hill Industries Ltd.

For further information: For further information: Dieter Peter, Chairman & CEO, Telephone: (604) 685-4170; John Punzo, Director, Telephone: (604) 685-4170


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