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Duluth Metals Announces CDN $30 Million Convertible Debenture Financing

TORONTO, April 1, 2013 /PRNewswire/ --

Duluth Metals Limited ("Duluth Metals") ("Company") (TSX: DM) (TSX:DM.U) today announced that the Company has entered into a binding term sheet with CEF Holdings Limited ("CEF") to issue and sell to CEF CDN $30 Million in aggregate principal amount of unsecured convertible debentures of Duluth Metals. The debentures will carry a 7.5% coupon over a 5 year term with a conversion price based on a 30% premium to the 20 day volume-weighted average price (VWAP) of Duluth Metals shares at the close of trading on March 28, 2013.  Accordingly, the 20 day VWAP is $1.74 and the conversion price is $2.26.  The financing will be used to fund certain development expenses of the Twin Metals Minnesota Project ("TMM"), the Company's expenses on its 100% owned exploration properties and for general corporate purposes. TMM is a large mining development project in Northern Minnesota and is a joint venture between the Company and Antofagasta plc.  Antofagasta plc and Wallbridge Mining Company Limited each have pre-emptive participation rights to participate in this financing by purchasing additional debentures to the CDN $30 Million funding.  The financing is subject to the satisfaction of customary conditions, including listing approval by the Toronto Stock Exchange of the underlying convertible common shares.

About CEF Holdings Limited

CEF Holdings Limited is owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce ("CIBC"). Cheung Kong (Holdings) Limited is the publicly-listed flagship company of the Cheung Kong Group of companies, the Hong Kong based multi-national conglomerate with a combined market cap of the Group in excess of $100 billion as of February 28, 2013. CIBC is a leading North American financial institution with operations around the world. CEF is an investor in significant resource assets on a global basis.

About Duluth Metals Limited

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