Adamus to Raise up to A$31.3M via Placement and Rights Issue

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

PERTH, Western Australia, Sept. 13 /CNW/ - Adamus Resources Limited ("Adamus") (TSXV, ASX: ADU) is pleased to announce the raising of up to A$31.3 million to provide additional funds for the development of its Nzema Gold Project ("Project") in Ghana and for general working capital.

The raising will consist of:

    
    -   a placement of 29 million fully paid ordinary shares (Shares) at
        $0.55 per Share to raise approximately A$15.9 million (Placement);
        and
    -   a 1 for 15 renounceable rights issue at $0.55 per Share to raise up
        to approximately A$15.4 million (Rights Issue).
    

The Company has already received firm commitments for the Placement which was keenly sought by existing shareholders and sophisticated investors in Australia, Asia and Europe. The Placement was significantly oversubscribed and was led by Helmsec Global Capital Limited and Patersons Securities Limited. The Placement is subject only to standard TSX Venture Exchange regulatory approval.

The funds raised are intended for utilisation as follows:

    
    -------------------------------------------------------------------------
    Use of Funds from New Issue                                          A$M
    -------------------------------------------------------------------------
    Acceleration of construction works, including the village
     resettlement                                                        4.5

    Contingency for unsigned Fiscal Stability Agreement                  4.5

    Immediate development at Salman South for mining & additional
     tailings storage facility costs                                     2.3

    Additional Contingency/Exploration                                  15.0

    Working capital (incl. issue expenses)                               5.0
    -------------------------------------------------------------------------
    

Adamus believes it prudent to raise additional funds at this time to provide the Company with operational flexibility and contingency during the final phase of construction of the Project.

The Board considers that accelerating expenditure, including village resettlement costs and preparation for mining at the Salman South, provides an opportunity to advance the Project's timelines whilst enhancing its initial operational flexibility.

Adamus is currently paying non-concessional rates on Import Duties, VAT and Withholding Taxes until such time as its Fiscal Stability Agreement (FSA) is granted by the Ghanaian government. Part of the proceeds will be applied to these charges until the FSA is signed and given effect.

Surplus funds will be directed to pursuing several exciting exploration opportunities for further oxide and sulphide mineral resources. Adamus believes there is potential to significantly expand its existing mineral resource base. Initial drilling programs will target the following:

    
    -   additional sulphide mineral resources over the entire 9km of Salman
        trend;
    -   better defining the mineralised areas between the existing Nugget
        Hill and Teberru pits; and
    -   drilling newly identified exploration areas, including Hotopo.
    

Adamus' Managing Director Mark Connelly said:

"The strong support for Adamus from our institutional shareholders is testament to the quality of the Nzema Project and its potential to increase its mineral resources."

"The on-ground team has done a great job to date in ensuring the Project's first gold pour remains on schedule for the first quarter 2011."

"We are also becoming increasingly confident about the exploration upside from our tenements."

"We are looking forward to 2011 as we move into production and seek to increase our mineral resource inventory from targeted exploration."

The Placement is scheduled for completion on Friday, 17 September 2010. Participants in the Placement will be eligible to participate in the Rights Issue. Full details of the Rights Issue, including the indicative timetable, will be provided in the Rights Issue prospectus which is expected to be lodged later this week.

    
    Kind regards
    ADAMUS RESOURCES LIMITED

    (signed)

    Mark Connelly
    Managing Director/CEO
    

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.

Caution Regarding Forward Looking Information.

Certain statements included in this announcement, including information regarding Adamus' plans with respect to its mineral properties, constitute forward-looking information. Forward-looking information includes, among other things, statements regarding expected operations. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information: please see our website: www.adamusresources.com.au or contact: Mark Connelly - Managing Director, CEO, [phone], email: [email protected]; For media enquiries contact: Brian Thornton - Farrington National, [phone], email: [email protected]