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Exercise of Polaris Warrants and Further Debt Reduction

VANCOUVER, Dec. 27, 2012 /PRNewswire/ - Polaris Minerals Corporation (TSX:PLS) (the "Company") is pleased to advise that the holders of the 13.2 million common share purchase warrants (the "Warrants") issued on March 1, 2012, have agreed to exercise the Warrants in full on, or before, December 31, 2012.

The Warrants have an exercise price of $0.44 each and their exercise will generate cash receipts to the Company of $5.8 million of which $1.9 million will be used to further reduce the Company's outstanding debt to $8.1 million. The balance will be used for general working capital purposes.

Herb Wilson, President and CEO, commented:  "We are delighted by this support from the warrant holders who unanimously agreed to exercise at this time. The Company will now enter 2013 in a strong position and is anticipating further increases in sales arising from the recently announced new supply agreement coupled with the widely forecast recovery in the US construction markets."

Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the Pacific coasts of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver and Hawaii.

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws.  These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes.  Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology.  Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's Annual Report and under the heading "Risk Factors" in the Company's Annual Information Form (AIF) in respect of its financial year-ended December 31, 2011, both of which are filed with Canadian regulators on SEDAR (www.sedar.com).  The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise.  All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.


SOURCE Polaris Minerals Corporation

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