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Ecometals Limited Announces Private Placement Final Closing

TORONTO, ONTARIO--(Marketwire - Dec. 13, 2010) -


Ecometals Limited (the "Company") (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) announces that it has closed the final tranche of a previously announced non-brokered private placement in which investors have subscribed for 2,166,666 units (each, a "Unit") at a price of CDN$0.15 per unit (the "Issue Price") for gross proceeds of CDN$325,000 (the "Offering"). 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. In lieu a cash fee, the Company has also issued 77,333 finder's units of the Company (each a "Finder's Unit) to certain finders, as a finder's fee in respect of subscribers located by each finder in connection with this final tranche. Each Finder's Unit comprises a Common Share and a non-transferable Warrant. The securities issued in the final tranche of the Offering are subject to a four month hold period expiring on April 11, 2011.

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

The Company also wishes to announce that it has issued a total of 309,672 Units to General Research GmbH at a price of $0.15 per Unit to settle an outstanding debt for $46,451. The Units issued in full satisfaction of the said debt are subject to a four month hold period expiring on April 11, 2011.

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.

Forward-looking information: Statements contained in this release that are not historical facts are forward looking statements, including, without limitation, statements relating to the funding of drilling costs for the Rio Zarza Project, 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. Factors that could cause actual results to differ materially from current expectations include but are not limited to delays to the start of drilling in the event the community relations process is not successful or if final approval from the Ministry of Mines is not forthcoming. 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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