News Release

 October 28, 2008
Crowflight Restructures $55 Million Debt Facility: Pays Off $42 Million Of Debt And Adds $19.4 Million In Cash

CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) is pleased to announce that in conjunction with RMB Resources Inc. acting as agent for Crowflight's lender, FirstRand Ireland Plc, Crowflight has restructured the Cdn $55 million debt facility entered into in February 2008 (see Press Release February 13, 2008).

Both Crowflight and RMB Resources have decided to close out most of the nickel forward sales contract entered into in July 2008 (see Press Release July 30, 2008). At that time, Crowflight hedged 20.5 million pounds of nickel at a price of US$8.49 per pound over a four year period. Details of the debt restructuring are as follows:

  • The following amounts of nickel were closed out recently to raise net proceeds of Cdn $63 million. A total of 18.2 million pounds of nickel or 89% of the hedge has been monetized.
Calendar Year Million pounds
2008 0.4
2009 1.6
2010 5.7
2011 5.5
2012 4.9

  • The proceeds of Cdn $63 million are being used to repay in its entirety the Tranche 1 debt facility of Cdn $10.35 million (including capitalized interest) and a minimum of Cdn $33.2 million (including capitalized interest) of the Cdn$45 million Tranche 2 debt facility. As of October 27, 2008, Crowflight had only drawn Cdn $50.2 million of the Cdn $55.0 million debt facility. As part of the debt restructuring, Crowflight and the Lender have agreed to cancel the 16.3 million warrants exercisable at Cdn $0.64 per share associated with the Tranche 1 facility and the 1 million warrants exercisable at Cdn $0.64 per share associated with the Tranche 2 facility.
  • After monetization of the nickel hedge, Crowflight will still have 2.27 million pounds of nickel hedged at US$8.49 per pound in 2009. In addition Crowflight will put in place a currency hedge covering the Canadian dollar amount of the nickel hedge in 2009.
  • Crowflight's new debt outstanding under the restructured facility is Cdn $7.6 million, which is repayable to the Lender over 2010, 2011 and 2012 in equal quarterly installments. As a part of the restructured facility Crowflight will make mandatory quarterly prepayments to the Lender equal to 40% of after debt service project cash flow during 2009, falling to 15% thereafter.
  • The restructuring will provide Crowflight with Cdn $19.4 million in cash and the restructured facility calls for Cdn$10 million to be applied to the facility proceeds account for completion of the Bucko Mine and project working capital, Cdn$3 million to the facility debt service reserve and the remainder to Crowflight for working capital and general corporate purposes. Under the restructured facility Crowflight has agreed to grant 20 million Crowflight warrants, the Restructuring Warrants, at 125% of the 20 day VWAP (volume weighted average price) at closing to the Lender, subject to regulatory approval. Any proceeds from the warrants will be used to prepay or repay the restructured facility debt outstanding.
  • Crowflight in conjunction with RMB may also implement future strategic currency and nickel hedges both to protect Crowflight cash flow and meet Lender requirements.
Commented Mike Hoffman, President and CEO of Crowflight, "During discussions with our lender during the week of October 14th, we noticed that the value of our nickel hedge was far in excess of our market capitalization due to a weakening Canadian dollar and weaker nickel prices. We realized we had a very unique opportunity to lower our lender's risk by repaying a large portion of the debt and dramatically improve our financial situation with the debt repayment while leaving us with sufficient cash to ramp up the Bucko Mine to commercial production. It is a testament to our Board and the flexibility of RMB Resources and FirstRand Ireland plc that we could execute this opportunity during the window that was available on a very timely basis. With our existing cash balances and the additional funds provided by the restructured facility, Crowflight is in a strong position as we bring on line Canada's newest primary nickel mine."

Crowflight expects to initiate production of nickel concentrate at the Bucko Mine by the end of October. Final testing and commissioning of mill components continues to advance.

Crowflight Minerals - Canada's Next Nickel Producer

Crowflight Minerals Inc. (TSX-V: CML) is a Canadian junior mining company that is bringing the Bucko Lake Nickel Mine near Wabowden, Manitoba into production. Full commercial production is expected to be achieved at Bucko in early 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.

Cautionary Note on Forward-Looking Information

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Further information is available on the Company's website at or contact:

Mike HoffmanPresident and CEO
Crowflight Minerals
Tel: (416) 861-2964

Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803

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CANICKEL MINING LIMITED. P.O. Box 35 1655-999 West Hastings Street, Vancouver, British Columbia, Canada V6C 2W2 P: 778-372-1806 F: 604-254-8863 E: