Copper Mesa Mining Announces Bridge Loan Facility

Subject to shareholder and TSX approval, the terms of the Loan also provide the private investors with the right, in the event of a future equity financing by the Company, to convert the principal and interest outstanding and accrued on the Loan at the time of the financing into the equity securities offered in that financing at the same price per security that such securities are sold in the financing. The Company has the right to pre-pay the Loan at any time prior to its due date with no penalty.

In connection with the Loan the Company has agreed to issue one warrant for each dollar loaned to the Company in respect of US$2.0 million under the Loan facility, and 1.5 Warrants for each dollar loaned to the Company in respect of US$300,000 under the Loan facility.

Each Warrant will be exercisable for a five year term from the date it is issued, and will be convertible for one common share of the Company at an exercise price per share equal to the volume-weighted average closing price per share on the TSX for the 5 trading days preceding the date the Warrants are issued. If all 2,450,000 Warrants are issued, they would be exercisable for an aggregate of 2,450,000 shares, representing approximately 2.4% of the shares currently issued and outstanding.

The proceeds from the Loan will be used for general working capital and certain capital asset expenditures including funding the advancement of the Zonia copper mine in Arizona. -- www.cnxmarketlink.com