Mr. Paul Gorman reports

POWERMAX MINERALS ANNOUNCES CLOSING OF PRIVATE PLACEMENT OFFERINGS

Powermax Minerals Inc. has completed a non-brokered private placement offering of 5,697,000 units of the company (non-FT units) at a price of 35 cents per non-FT unit, for aggregate gross proceeds of $1,993,950. Each non-FT unit consists of one common share of the company and one share purchase warrant, with each warrant entitling the holder to purchase one share at an exercise price of 46 cents for a period of 24 months from the date of issuance.

The company is also pleased to announce that it has completed a non-brokered private placement offering of 2,351,476 flow-through units of the company (FT units) at a price of 42 cents per FT unit, for aggregate gross proceeds of $987,619.92. Each FT unit consists of one share and one (non-flow-through) share purchase warrant (FT warrant), with each FT warrant entitling the holder to purchase a (non-flow-through) share at an exercise price of 50 cents for a period of 24 months from the date of issuance.

The FT shares are intended to qualify as flow-through shares within the meaning of the Income Tax Act (Canada). The proceeds from the sale of the FT shares will be used to incur Canadian exploration expenses that are intended to qualify as flow-through mining expenditures as those terms are defined in the tax act.

In conjunction with the offering, the company paid an aggregate of $83,433 in finders' fees and issued 214,620 non-flow-through finders' warrants and 19,800 flow-through finders' warrants to finders. Each non-flow-through finder's warrant is exercisable into one share at a price of 46 cents for a period of 24 months from the date of issuance. Each flow-through finder's warrant is exercisable into one share at a price of 50 cents for a period of 24 months from the date of issuance.

Proceeds from the sale of the non-FT units are intended to be used for general working capital purposes and to finance exploration work on the Cameron rare-earth element (REE) property, located in British Columbia, and the Atikokan REE property, located in Ontario both on which the company holds options to acquire. Proceeds from the sale of the FT units are intended to be used to incur Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures as such terms are defined in the tax act.

All securities issued under the private placement offerings are subject to a statutory hold period of four months and one day.

About Powermax Minerals Inc.

Powermax is a Canadian mineral exploration company, holding options to acquire the Cameron REE property, located in British Columbia, and the Atikokan REE property, located in Ontario.

We seek Safe Harbor.