Mr. Paul Gorman reports

POWERMAX ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Powermax Minerals Inc. intends to complete a non-brokered private placement of up to 1,315,789 units at a price of 76 cents per unit, and of up to 1,388,888 flow-through units (FT units) at a price of 90 cents per FT unit, for aggregate gross proceeds of up to $2.25-million. Each unit comprise one common share and one common share purchase warrant, with each warrant exercisable into one common share at a price of 95 cents for a period of 24 months. Each FT unit comprise one common share to be issued on a flow-through basis under the Income Tax Act (Canada) and one common share purchase warrant (an FT warrant) exercisable into one (non-flow-through) common share at a price of $1.10 for a period of 24 months.

Proceeds from the sale of the units are intended to be used for general working capital purposes, including 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 as defined in the Income Tax Act (Canada).

The company may pay finders' fees in accordance with the policies of the Canadian Securities Exchange. The private placement is subject to receipt of CSE acceptance, and the company may upsize the private placement by up to an additional $750,000 having regard to prevailing market conditions.

About Powermax Minerals Inc.

Powermax Minerals is a Canadian mineral exploration company focused on advancing rare-earth element projects. The company holds an option to acquire the Cameron REE property, comprising three mineral claims totalling approximately 2,984 hectares in British Columbia. Powermax also optioned to acquire the Atikokan REE property, consisting of 455 unpatented mining claims in NW Ontario. Powermax also owns a 100-per-cent interest in the Ogden Bear Lodge project, in Crook county, Wyoming.

We seek Safe Harbor.