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Trevali Closes $7.7-Million Non-Brokered Private Placement

^{Published on 2009-12-11 06:37:26 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2009) - Trevali Resources Corp. ("Trevali" or the "Company") (CNSX:TV)(PINK SHEETS:TREVF)(FRANKFURT:4TI) is pleased to announce that it has completed the non-brokered private placement financing announced November 5, 2009 issuing 11,002,000 units at $0.70 per unit, including an overallotment of 1,000,000 units at $0.70 per unit, for total gross proceeds of $7,701,400. Each unit is comprised of one common share and one-half a share purchase warrant. Each whole warrant is exercisable at a price of $1.15 per common share for a period of two years from the closing date of the financing.

The warrants carry a forced conversion feature such that should the common shares of Trevali trade at or above $1.30 per share for 20 consecutive trading days on a volume weighted average price basis, that Company may (within 30 days of such occurrence) notify warrant holders in writing that the warrants must be exercised within 30 calendar days of the notice - subsequent to which any unexercised warrants will expire.

All securities issued in the offering have a hold period of four months from the closing.

The proceeds of the financing will be utilized to advance exploration and development of the Company's Santander silver-lead-zinc mine project in Peru in addition to fulfilling the Company's 18-month budgetary requirements for its Toronto Stock Exchange listing application.

The Company has made an application to list its common shares on the Toronto Stock Exchange ("TSX") in an effort to increase its exposure in financial markets. The TSX has yet to conditionally approve the Company's listing application and any such approval granted is expected to be subject to certain conditions. If the Company is not able to meet the minimum listing requirements of the TSX, then the Company will either seek to list its common shares on another North American stock exchange or maintain its listing on the CNSX.

PROJECT BACKGROUND

The Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima in Peru's world-class Central Mineral Belt. The mine previously operated from 1958-1993 targeting a single Carbonate Replacement Deposit-type pipe and manto structure, the Santander Orebody.

Substantial site infrastructure includes a fully refurbished 200-man camp (currently being expanded to 350-person capacity) and associated support facilities, and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Santander project and the considerable existing infrastructure form a highly strategic asset in this mining district. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date.

A recently completed independent resource estimate of the three Magistral deposits reviews a total Indicated Mineral Resource of 5,298,000 tonnes with an average grade of 3.34% zinc, 1.27% lead and 38 g/t silver (using a 2% ZnEQ(i) cut-off grade) - for a contained metal inventory of 390 million lbs. zinc, 149 million lbs. lead and 6.5 million oz. silver in the Indicated category. An additional Inferred Mineral Resource of 2,244,000 tonnes grading 2.92% zinc, 0.50% lead and 18 g/t silver was also reviewed in the three deposits using the same cut-off grade - for contained metals of 144 million lbs. zinc, 25 million lbs. lead and 1.3 million oz. silver. All three Magistral bodies remain open at depth and to the East.

Additionally, a further 100 million contained lbs. of zinc are estimated within the 1,656,000 indicated tonnes grading at 2.74% zinc (using a 2.0% zinc cut-off grade) at the Santander Tailings Impoundment.

(i) ZnEQ = ((Ag Price(g) x Ag Recovery x Ag Grade) + (Pb Price(t) x Pb Recovery x (Pb Grade(%)/100)+(Zn Price(t) x Zn Recovery x (Zn Grade(%)/100)))/Zn Price(t). Golder utilized the three year rolling average price for all three metals. Price for silver is per gram ($0.43339) and that for Pb ($1,983) and Zn ($2,742) is per tonne. A recovery of 85% was applied to Ag, 94% for Pb and 91% for Zn based upon Trevali's metallurgical testwork. A 2% ZnEQ(i) cut-off grade is the nominal base case estimated grade of material that can be mined and processed considering all applicable costs.

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the Company, as he is an officer and shareholder.

The work programs at Santander were designed by, and are supervised by, Dr. Mark D. Cruise, President & CEO, Trevali, and Tim Kingsley (independent geological consultant), who together are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ACME Laboratories, Vancouver, for assay. ACME's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Trevali personnel in order to independently assess analytical accuracy. Finally, representative blind duplicate samples are routinely forwarded to ACME and an ISO-compliant third party laboratory for additional quality control.

The resource estimates on the Magistral North, Central and South deposits were conducted by and under the supervision of Kevin Palmer P.Geo., an independent qualified person employed by Golder Associates Ltd. of Vancouver, Canada.

About Trevali Resources Corp.

The Company in conjunction with partner Glencore International A.G. has entered into a definitive development agreement for the Santander project that will see Glencore provide and operate a 2,000-tonne-per-day concentrate plant, undertake mining operations on a 'contractor/toll basis' and enter into a long-term concentrate offtake agreement for 100% of Santander project production at benchmark terms.

Additionally, through its wholly owned subsidiary Trevali Renewable Energy Inc., the Company is undertaking a significant upgrade of the Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow the potential sale of surplus power into the Peruvian National Energy Grid.

The common shares of the Company are currently listed on the CNSX (symbol TV). For further details on the Company, readers are referred to the Company's web site ([ www.trevali.com ]) and to Canadian regulatory filings on SEDAR at [ www.sedar.com ].

On Behalf of the Board of Directors of TREVALI RESOURCES CORP.

Mark D Cruise, President

The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.