Mr. Paul Gorman reports

POWERMAX MINERALS ANNOUNCES CLOSING OF $3M PRIVATE PLACEMENT OFFERINGS

Powermax Minerals Inc. has completed a non-brokered private placement offering of 1,643,947 units of the company at a price of 76 cents per non FT (flow-through) unit, for aggregate gross proceeds of $1,249,400. 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 95 cents for a period of 36 months from the date of issuance.

The company is also pleased to announce that it has completed a non-brokered private placement offering of 1,945,000 flow-through units of the company at a price of 90 cents per FT unit, for aggregate gross proceeds of $1,750,500. Each FT unit consists of one share and one share purchase warrant, with each FT warrant entitling the holder to purchase a share at an exercise price of $1.10 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 $164,994 in finders' fees and issued 195,600 finders' warrants to finders. Each finder's warrant is exercisable into one share at a price of 95 cents for a period of 36 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 company's mineral projects in British Columbia and Ontario. 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 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 Northwestern Ontario. Powermax also owns a 100-per-cent interest in the Ogden Bear Lodge project, in Crook county, Wyoming.

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