Last updated on April 24, 2014 at 5:50 EDT

Duluth Metals Limited announces closing of US$10 million loan financing with Antofagasta Minerals S.A.

October 1, 2012

TORONTO, Oct. 1, 2012 /PRNewswire/ – Duluth Metals Limited (“Duluth Metals” or
the “Company”) (TSX: DM) (TSX: DM.U) is pleased to announce that it has
closed a US$10,000,000 loan financing with Antofagasta Minerals S.A. (a
subsidiary of Antofagasta plc) pursuant to the terms of a participation
agreement (the “Participation Agreement”) relating to the Twin Metals
Minnesota LLC joint venture (the “Joint Venture”).  The loan proceeds
have been invested in the Joint Venture as the Company’s share (35%) of
a capital call and will ultimately be repayable in cash, the Company’s
shares or offset against the exercise price of the option (granted to
Antofagasta plc) to acquire from the Company an additional 25% interest
in the Joint Venture at an exercise price calculated on the basis of a
formula as a pro rata share of the net asset value of the Joint Venture
project determined by a full feasibility study.  Concurrently,
Antofagasta has invested $18,600,000 into TMM as their share (65%) of
the capital call.

We make reference to Duluth Metals’ management’s discussion and analysis
(“MD&A”) for its second quarter ended June 30, 2012 which further
details the Participation Agreement, which MD&A is posted on Duluth
Metals’ website at www.duluthmetals.com and on Duluth Metals’ SEDAR profile.

About Duluth Metals

Duluth Metals is committed to acquiring, exploring and developing
copper, nickel and platinum group metal (PGM) deposits. Duluth Metals
has a joint venture with Antofagasta plc on the Twin Metals Project,
located within the rapidly emerging Duluth Complex mining camp in north
eastern Minnesota.  The Duluth Complex hosts one of the world’s largest
undeveloped repositories of copper, nickel and PGMs, including the
world’s third largest accumulation of nickel sulphides, and one of the
world’s largest accumulations of polymetallic copper and platinum group
metals. Aside from the Joint Venture, Duluth Metals retains a 100%
position on approximately 37,000 acres of mineral interests on
exploration properties adjacent to and nearby the Twin Metals Project.

SOURCE Duluth Metals Limited

Source: PR Newswire