Vault Minerals Inc. Announces $2,050,000 Offering

KIRKLAND LAKE, ON, Oct. 20 /CNW/ - VAULT MINERALS INC. (TSX-V: VMI) ("Vault" or the "Company") announces that it has engaged Primary Capital Inc. (the "Agent") to complete a brokered private placement (the "Offering") to raise aggregate gross proceeds of up to $2,050,000. In connection with the Offering, the Company intends to issue: (i) 3,500,000 common shares which will qualify as "flow-through" shares pursuant to the Income Tax Act (Canada) ("FT Shares") at a price of $0.30 per FT Share on an underwritten basis; and (ii) up to 4,000,000 units ("Units") at a price of $0.25 per Unit on a best efforts agency basis.

Each Unit will consist of one common share of Vault and one-half of one share purchase warrant. Each whole such share purchase warrant (a "Warrant") will entitle the holder thereof to acquire one additional common share of Vault at an exercise price of $0.35 per share for a period of 24 months following the date of issuance thereof; provided however that if, at any time following the date which is six months following the closing of the Offering, the common shares of the Company trade at a price of $0.80 or greater per share for a period of 10 consecutive trading days, the expiry date of the Warrants may be accelerated to the date which is 30 days following the date upon which the Company provides notice to the holders thereof of such accelerated expiry date.

Upon closing, the Agent will receive a cash commission equal to 7% of the gross proceeds raised under the Offering and that number of compensation options (the "Agent's Warrants") equal to 7% of the number of FT Shares and Units sold under the Offering. Each Agent's Warrant will be exercisable for one common share of the Company at a price of $0.25 per share for a period of 24 months from closing. The Agent's compensation is subject to reduction with respect to any sales to insiders. Insiders of Vault may subscribe for up to 25% of the Offering.

Closing of the Offering is subject to receipt of all necessary regulatory approvals. The securities issued in connection with the Offering will have a hold period expiring four months and one day from the date of closing. The net proceeds will be used to explore the Company's Kirkland Lake gold properties and for general working capital purposes.

About Vault

Vault Minerals Inc. is a Canadian junior gold exploration company active in the world-renowned Kirkland Lake gold camp of northern Ontario. The Company's capital consists of 33,316,093 issued and outstanding common shares which are listed for trading on the TSX Venture Exchange under the symbol 'VMI'. For further information, please contact Joe Horne, President at 902 402 8266 or visit www.vaultminerals.com

    
    On behalf of the Board of
    VAULT MINERALS INC.

    signed: "Joseph D. Horne"
    --------------------------------
    Joseph D. Horne, President & CEO

    This Press Release may contain forward-looking statements that involve
inherent risks and uncertainties. Actual events or results could differ
materially from the Company's forward-looking statements and expectations, and
the Company disclaims any obligation to update these forward-looking
statements.

    "Neither 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 VAULT MINERALS INC.

For further information: For further information: Joe Horne, President at (902) 402-8266 or visit www.vaultminerals.com

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VAULT MINERALS INC.

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