North American Tungsten Corporation closes public offering for gross proceeds of Can$11.5 million

North American Tungsten Corporation Ltd. (the “Company”) (TSX VENTURE:NTC) is pleased to announce it has completed a bought deal offering of 23,000,000 units (the “Units”) of the Company which includes the exercise in full of the over-allotment option for 3,000,000 additional Units, for aggregate gross proceeds of $11,500,000 (the “Offering”). The Units were sold at a price of $0.50 per Unit.

Each Unit consists of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.75 for a period of two years following the Closing Date.

The Units were sold pursuant to an underwriting agreement (the “Underwriting Agreement”) with a syndicate of underwriters led by Fraser Mackenzie Limited and including Stifel Nicolaus Canada Inc., Octagon Capital Corporation and Scotia Capital Inc. (collectively, the “Underwriters”).

Pursuant to the Underwriting Agreement, the Company paid the Underwriters a cash fee (the “Broker’s Cash Payment”) equal to 7% of the gross proceeds of the Offering with the exception of Units sold to any insiders of the Corporation (the “Insiders”) for which the Underwriters received a cash commission of 1% of the gross proceeds from such sales. The Corporation has also issued to the Underwriters, broker warrants (the “Broker Warrants”) equal in number to 7% of the aggregate number of Units sold pursuant to the Offering with the exception of any Units sold to Insiders for which the Underwriters received Broker Warrants equal in number to 1% of the aggregate number of Units sold to such Insiders. Each Broker Warrant will be exercisable for one unit of the Corporation (a “Broker Unit”) at a price of $0.75 for a period of two years following the closing of the Offering. The Broker Units shall be issued on the same terms as the Units.

The Company plans to use the net proceeds from the offering to advance the Cantung and Mactung projects and to reduce the Company’s working capital deficiency.