Tiger Resources Announces A$9,000,000 Financing



    
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    THE UNITED STATES./
    

    PERTH, Western Australia, May 12 /CNW/ - Perth-based emerging copper
miner Tiger Resources Ltd (ASX/TSX - TGS) ("Tiger" or the "Company") is
pleased to announce that it has entered into an agreement with RBC Capital
Markets ("RBC") to raise A$9,000,000 on a best endeavours basis through a
private placement of shares to institutional and high net worth clients of RBC
in North America, Europe and Australia. The Company proposes to issue 90
million Shares (the "Shares") at a price of A$0.10 per Share pursuant to the
placement.
    The placement is scheduled to close during the week ended 22 May 2009 and
is subject to certain conditions including, but not limited to, the receipt of
all necessary regulatory approvals including the approval of the Toronto Stock
Exchange. The total number of Shares to be issued pursuant to the placement
exceeds the Company's 15% placement capacity under the Australian Securities
Exchange Listing Rules. Therefore, the issue of Shares in excess of the 15%
capacity will also be subject to shareholder approval. A general meeting for
this purpose is proposed to be held in mid June 2009.
    The net proceeds of the private placement secures the funds for the
payment due in July 2009 in connection with the acquisition by the Company of
a 60% interest in SEK sprl, a DRC registered company which has the rights to
the Kipoi project in the Democratic Republic of Congo ("DRC"), and for working
capital and general corporate purposes. The remaining 40% interest in SEK sprl
is held by Gécamines, a DRC government owned entity.
    Tiger is focused on the near term development of Kipoi based on an
optimized feasibility study that significantly enhanced the economics of the
project. Tiger is targeting securing project finance for Stage 1 of the
planned development at Kipoi in the third quarter of 2009, and is targeting
commencement of production in the second quarter of 2010.

    Background

    There are five known copper deposits hosted in a 12km long fragmented
sequence of mineralised Roan sediments that have been mapped within boundaries
of the Kipoi Project in which the Company is acquiring a 60% beneficial
interest.
    The Company proposes a staged development at the Kipoi Project. The
Company has completed an optimized definitive feasibility study in respect of
a Stage 1 mining, Heavy Media Separation ("HMS") and spiral system operation
to produce 150,000 tonnes of copper concentrate per annum for three years. The
Company is targeting commencement of production in the second quarter of 2010.
The Company has recently commenced a feasibility study to evaluate the
economic viability of constructing an SXEW plant targeted to come on stream
within three years of the start of the HMS operation. It is envisaged that ore
from Kipoi Central, Kipoi North and Kileba South and the other deposits within
the Kipoi project would be processed at the Stage 2 development phase.

    Additional Notes:

    Caution Regarding Forward Looking Statements and Forward Looking
Information: This news release contains forward-looking statements and forward
looking information, which are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements and forward looking information, including but not limited to those
with respect to the development of a Stage 1 mining, HMS and spiral system
operation, a Stage 2 SXEW plant at Kipoi, the earning by Tiger of its interest
in the Kipoi Project, its plans to secure project finance for the Stage 1
Project and expected production and recoveries, involve known and unknown
risks, uncertainties, and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among others, the
actual market prices of copper, cobalt and silver, the actual results of
current exploration, the availability of equity and debt financing for a
company that does not have any producing properties, the volatility currently
being experienced in global financial markets, the actual results of future
mining, processing and development activities, changes in project parameters
as plans continue to be evaluated, as well as those factors disclosed in the
Company's Annual Information Form, under the heading "Risk Factors". The
Company's Annual Information Form is available under the Company's profile on
SEDAR at www.sedar.com.





For further information:

For further information: in respect of the Company's activities, please
contact: David Young, Managing Director, Tel: (+61 8) 9240 1933, Email:
dyoung@tigerez.com; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email:
gillardr@tigerez.com.au; Patrick Flint, Director, Tel: (+61 8) 9240 1933,
Email: pflint@tigerez.com

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Tiger Resources Limited

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