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Duluth Metals Announces Closing Of CDN $30 Million Convertible Debenture Financing

TORONTO, April 10, 2013 /PRNewswire/ --

Duluth Metals Limited (" Duluth  Metals") ("Company") (TSX: DM) (TSX:DM.U) today announced that the Company has closed its previously announced convertible debenture financing with purchasers including CEF (Capital Markets) Limited for CDN $30 Million aggregate principal amount of unsecured convertible debentures of Duluth Metals. The debentures mature April 10, 2018 and bear interest at an annual rate of 7.5%. The debentures are convertible into common shares of the Company at a conversion price based on a 30% premium to the 20 day volume-weighted average price (VWAP) of the common shares at the close of trading on March 28, 2013. 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 Project, the Company's continued exploration expenses on its 100% owned properties and for general corporate purposes. The Twin Metals Project is a large underground copper-nickel-palladium-platinum-gold mining development project in Northern Minnesota and is a joint venture between the Company and Antofagasta plc. The 100% owned exploration properties cover over 40,000 acres in close proximity to the Twin Metals Project and within the Duluth Complex.

The debentures have not been and will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions.

About CEF (Capital Markets) Limited

CEF (Capital Markets) Limited is a wholly owned subsidiary of CEF Holdings Limited, which 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 group market cap in excess of $100 billion as of February 28, 2013. CIBC is a leading North American financial institution with operations around the world. CEF Holdings Limited is an investor in significant resource assets on a global basis.

About Duluth Metals Limited

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