The Herald (Harare)

26 November 2012

Zimbabwe: New Dawn Completes Private Placement

NEW Dawn Mining Corporation says it has completed a US$2 million non-brokered private placement with a Zimbabwe-focused fund managed by an international investment firm at about US$1 per share.

The private placement did not include any warrants, and no finder's fees or brokerage commissions were paid, New Dawn said.

The private placement shares are subject to a four month hold period expiring on March 22 next year.

The proceeds from the private placement will be used to fund the acquisition of ordinary shares of the company's 85 percent owned subsidiary in Zimbabwe, Falcon Gold Zimbabwe and for general working capital purposes.

The acquisition of the Falgold shares by New Dawn is intended to facilitate implementation of New Dawn's proposed plan of indigenisation at the Zimbabwe subsidiary level.

The Falgold Scheme of Arrangement is conditional upon, and will not become effective until, the satisfaction of the remaining conditions precedent, which consist primarily of the receipt of necessary regulatory approvals.

The satisfaction of the conditions precedent could take up to several months.

Upon the conclusion of this private placement, New Dawn had 45,612,383 common shares outstanding.

New Dawn is a junior gold company listed on the Toronto Stock Exchange that is focused on expanding its gold mining operations in Zimbabwe. New Dawn owns 100 percent of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.

In addition, New Dawn, through its Falgold subsidiary, owns approximately 85 percent of the Dalny Mine, the Golden Quarry Mine and the Venice Mine, and a portfolio of prospective exploration acreage in Zimbabwe. The Venice Mine is not currently in production. These six mines, five of which are currently operational, are operated as three gold camps.

In addition to gold production, New Dawn is also actively exploring on highly prospective ground employing modern exploration techniques and deploying capital in Zimbabwe, a country that is proven to be geologically rich, highly prospective, and significantly under explored.

New Dawn, with its large gold resource, existing mine sites and production facilities, and current exploration programs, is a growing gold mining company in Zimbabwe, active in both gold production and gold exploration.

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