EQT Corporation press release

MacDonald Mines Commences Drill Program and Announces $1,270,000 in Private Placement Financings

2006-03-28

NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · United States

TORONTO, March 28 /CNW/ - MacDonald Mines Exploration Ltd. (TSX:BMK) (the "Corporation") - Kirk McKinnon, President & Chief Executive Officer of MacDonald Mines is pleased to announce that drilling has commenced on the McNugget property of the Corporation located in the James Bay Lowlands Region of Northern Ontario and that Dundee Securities Corporation ("Dundee") has agreed to act as the agent of the Corporation in connection with the private placement financing.

EXPLORATION PROGRAM - 2,000 METERS

The exploration program is under the direction of Joe Campbell, P.Geo of GeoVector Management, with the field work to be conducted under the supervision of Chris Roney, P.Geo. The recently completed ground geopyhsics by Exsics Exploration Limited has identified several excellent VMS targets as well as potential Kimberlite targets. Cartwright Drilling has been contracted for the required drill work and Expedition Helicopters will provide helicopter support. All supplies have been moved into the First Nations Community of Webequie via winter road or by air as Webequie will be the primary staging area for this exploration program. The planned program consists of 12-14 holes totaling about 2,000 meters with a contingency to expand the program based on drill results. Drill core will be logged and prepared for assay in accordance with Quality Procedures developed by GeoVector Management. All samples will be shipped to Accurassay Laboratories in Thunder Bay for analysis.

FINANCING

Richard Schler, the Vice-President & Chief Financial Officer of the Corporation, is pleased to announce that the Corporation intends to raise aggregate gross proceeds of up to $970,000 by way of a brokered private placement (the "Offering"). The private placement will consist of up to 6,250,000 "flow-through units" of the Corporation (the "F/T Units") offered on a best efforts basis at a price of $0.12 per F/T Unit and up to 2,000,000 units (which are non-flow-through) of the Corporation (the "Units") offered on a best efforts basis at a price of $0.11 per Unit. Each F/T Unit will consist of one "flow-through" common share of the Corporation and one-half of one common share purchase warrant (the "F/T Warrants"). Each whole F/T Warrant will entitle the holder thereof to acquire one common share of the Corporation at a price of $0.18 for a period of 24 months from the date of issuance. Each Unit will consist of one common share of the Corporation and one share purchase warrant (the "Unit Warrants"). Each Unit Warrant will entitle the holder thereof to acquire one common share of the Corporation at a price of $0.15 for a period of 24 months from date of issuance. Dundee has agreed to act as the agent of the Corporation in connection with the Offering, pursuant to which Dundee will be paid a fee equal to 7% of the gross proceeds raised in the Offering, such fee to be payable in common shares of the Corporation (the "Fee Shares") at an effective price of $0.12 per Fee Share. In addition, Dundee will receive a broker warrant (the "Broker Warrant") exercisable to acquire common shares of the Corporation equal in number to 7% of the aggregate number of F/T Units and Units sold under the Offering at a price of $0.12 per common share for a period of 24 months after the date of the closing of the Offering. Dundee may, at its discretion, elect to receive its fees payable in cash. In addition, the Corporation will be completing a non-brokered private placement for gross proceeds of up to $300,000, the terms of which are consistent with those of the offering of the F/T Units described above. The Corporation has agreed to pay a finders fee equal to 9% of the aggregate gross proceeds raised. The Corporation intends to use the gross proceeds from the sale of the Flow-Through Units for exploration programs on its projects located in the James Bay Region of Ontario and the proceeds from the sale of the Units for working capital and general corporate purposes. Completion of the financings remains subject to regulatory approval. The securities issued under the financings will be subject to a four-month resale restriction in Canada. The financings are expected to close on or before April 4, 2006.

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.