On May 11, 2006 Blue Note Metals Inc. completed an offering by way of private placement of 50 million Units at $1.50 each Unit for aggregate gross proceeds of $75 million.

Each Unit consisted of one common share at $0.30 per common share and four subscription receipts at $0.30 per Subscription Receipt. Each Subscription Receipt entitles the holder to one common share for no additional consideration upon the successful acquisition of the Caribou and Restigouche Mines by Blue Note.

The gross proceeds from the sale of the Units are being held in escrow by a licensed trust company until the satisfaction of certain conditions by Blue Note. Approximately $50 million of the net proceeds will be used for the development of the Properties, approximately $5 million of the net proceeds will be used for the further development of the mines and surrounding properties (including extending the current proven and probable reserves), and the remaining net proceeds will be used for the further development of the mines, future acquisitions and general working capital.

The offering was completed by a syndicate of Agents that was co-led by Octagon Capital Corporation and TD Securities Inc. and which included Blackmont Capital Inc. and Northern Securities Inc.

The Agents were represented by Fasken Martineau \, with a team that included Chuck Higgins (mining/securities), Krisztian Toth (securities/mining), Charles Kazaz (environmental) and Darrell Podowski (mining/securities).