European Minerals Completes $103.5M Offering

On April 11, 2005, European Minerals Corp. completed an offering of units raising gross proceeds of approximately $97.5 million. In addition, on April 26, European Minerals completed the issuance of additional units pursuant to the exercise of the remaining portion of an over-allotment option bringing the total gross proceeds to approximately $103.5 million.

A syndicate of agents led by Canaccord Capital Corp. and Canaccord Capital (Europe) Ltd., and including Haywood Securities Inc. and Pacific International Securities Inc., placed an aggregate of 138,000,000 units (including over-allotment units) at $0.75 (£0.33) per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant. The common shares and warrants are traded on the Toronto Stock Exchange and the common shares have also been admitted to the AIM market of the London Stock Exchange.

European Minerals plans to use the net proceeds of the offering to fund the development of an open pit mine at its 86 per cent-owned Varvarinskoye gold-copper deposit in Kazakhstan, and for general working capital.

European Minerals was represented by Goodman and Carr LLP with a team that included Marvin Singer, Peter Laflamme and Michael Sabusco (securities), and Bernard Morris and Peter Jovicic (tax). Michael Wilson, Robert Nicholls, Arman Kumisbayev and Vsevolod Markov of Michael Wilson & Partners, Ltd. in Almaty, Kazakhstan acted for both European Minerals and JSC Varvarinskoye as to the Kazakhstani and in-country/JV-related issues. European Minerals was also represented by Christopher Simpson and Jacqueline Daley-Aspinall of Harney Westwood & Riegels in the British Virgin Islands, and Jonathan Schwarz, Barrister, in the UK.

The agents were represented by McCarthy Tétrault LLP with a team in Canada that included Andrew Parker and Matthew Kelleher (securities), Richard Miner (mining) and Nigel Johnston and Jason Vincze (tax), and a team in the UK comprised of Robert Brant and Reena Modha (securities).