Private Placement 2012-07-24

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Private Placement 2012-07-24 Powered By Docstoc
                WITH A $1,300,000 PRIVATE PLACEMENT

Val-D’Or, Québec, Canada, July 24, 2012. Knick Exploration Inc. is pleased to
announce that it has engaged MGI Securities Inc. (“MGI”) as agent, on a best efforts
agency basis without underwriting liability, for a private placement of up to 10,000,000
“flow-through” shares at a price of $0.10 per “flow-through” share, and up to 3,750,000
units at a price of $0.08 per unit, for gross proceeds to Knick Exploration Inc. (“Knick”)
of $1,300,000

Each unit will be comprised of one common share and one common share purchase
warrant. Each warrant will entitle the holder thereof to purchase one additional common
share of Knick at a price of $0.15 for a period of 24 months following the closing date.

Knick also granted MGI an option exercisable for a period of 30 days following the
closing of the private placement, to purchase at the issue price up to 15% of the issue
size to cover over-allotments, if any.

Knick will use the proceeds from the placement of “flow-through” shares to incur
exploration drilling expenses on either the East-West or Trecesson mining properties.
Knick will use the net proceeds from the placement of the units to pay the costs of the
offering, for working capital and for general corporate purposes.

As consideration for acting as agent, Knick has agreed to pay MGI a cash commission
of 10% of the aggregate proceeds from the private placement, payable upon closing. In
addition MGI will receive agent’s warrants equal to 10% of the aggregate number of
“flow-through” shares and units sold, each agent’s warrant entitling MGI to purchase
one common share of Knick at an exercise price of $0.15 for a period of 24 months from
the closing date.

MGI may appoint a selling group consisting of other registered dealers acceptable to
Knick, for the purpose of arranging for purchasers of the “flow-through” shares and

The placement will be effected pursuant to prospectus exemptions under applicable
securities legislation and is expected to close on or about September 10, 2012 or such
other date mutually agreed upon by Knick and MGI. The placement is subject to receipt
of all necessary corporate and regulatory approvals, including that of the TSX Venture
Exchange, and to the execution of an Agency Agreement. The securities issued in the
private placement will be subject to a four months and one day “hold period”.

Knick also announces that its previously announced non-brokered private placement
has been cancelled.

For more information contact:

                                  Jacques BRUNELLE
                                  President and CEO
                                  Knick Exploration Inc.
                                  536, 3e Avenue
                                  Val-D’Or (Québec) J9P 1S4
                                  Tel : - 819 874-5252

This press release does not constitute an offer to sell or a solicitation of an offer to buy
any of the securities in the United Shares. The securities have not been and will not be
registered under the United Shares Securities Act of 1933, as amended or any state
securities laws and will not be offered or sold within the United-States or to United
States Persons. This press release is not for distribution to United-States newswire
services or for dissemination in the United-States.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.

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