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Ecometals Limited Announces Private Placement First Closing

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) -


Ecometals Limited (the "Company")(TSX VENTURE:EC)(BERLIN:EDQ)(FRANKFURT:EDQ) announces that it has closed the first tranche of a previously announced non-brokered private placement for up to 26,666,666 units (each, a "Unit")at a price of CDN$0.15 per unit (the "Issue Price") for gross proceeds of up to CDN$4,000,000 (the "Offering"). 3,565,000 Units were sold in this first closing for gross proceeds of CDN$534,750. Each Unit comprises one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of CDN$0.25 for a 24 month period. The Company also issued 228,800 finder's units of the Company (each a "Finder's Unit) to General Research GMBH, as a finder's fee in respect of subscribers located by it in connection with this first closing. Each Finder's Unit comprises a Common Share and a non-transferable Warrant. The securities issued in this first closing are subject to a four month hold period expiring on February 16, 2011.

The Company is now proceeding with the second tranche of this placement, on the same terms as the first tranche, which it is anticipated will close by November 5th.

Gross proceeds from the total placement proceeds will be used for funding the Rio Zarza Project drilling costs, and for working capital.

The Company will be paying additional finder's fees representing 8% of the gross proceeds raised from subscribers introduced to the Company by its finders in respect of a second closing. The fees will be satisfied by the issuance of Finder's Units at the Issue Price.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.

About Ecometals

Ecometals Limited is a Canadian-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration activities in Ecuador, Ecometals also has significant manganese and iron projects in Brazil at grass roots and development planning stages.

Safe Harbor Statement: Statements contained in this release that are not historical facts are forward looking statements, including, without limitation, statements relating to a second closing, which involve risk and uncertainties, which could cause actual results to differ materially from those expressed in forward looking statements. Accordingly, readers should not place undue reliance on forward looking information. This includes references to the anticipated start of drilling after a successful outcome from the community relations process and the issuance of a final approval from the Ministry of Mines . In the event the community process is unsuccessful the risk is that drilling might not be permitted. The company does not undertake any obligation to update publicly forward looking information, except as required by law.

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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