Treasury Metals Announces Closing of Private Placement

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TORONTO, ONTARIO--(Marketwire -12/06/11)- Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX: TML.TO - News) is pleased to announce that it has closed its previously announced brokered private placement (the "Offering"), led by Cormark Securities Inc. and Canaccord Genuity Corp. and including Raymond James Ltd. (the "Agents"). The Offering consisted of 3,521,073 flow-through common shares (the "Flow-Through Shares") of the Company at a price of $1.15 per Flow-Through Share, for aggregate gross proceeds of approximately $4.0 million.

The net proceeds of the financing will be used to incur eligible Canadian Exploration Expenses and flow-through mining expenditures, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2011. The funds are intended to be used to explore and advance Treasury Metals' gold projects located in the Kenora Mining District of northwestern Ontario.

The Company paid the Agents a cash commission equal to 6% of the gross proceeds of the Offering and issued the Agents compensation options ("Compensation Options") equal to 3% of the aggregate number of Flow-Through Shares subscribed for under the Offering. Each Compensation Option entitles the holder thereof to purchase one common share of the Company at a price of $1.15 (subject to adjustment) until December 6, 2013.

For additional information on Treasury Metals, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Actual results or developments may differ materially from those in forward-looking statements. Treasury Metals disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

Contact:

Treasury Metals Inc.
Greg Ferron
Vice President Corporate Development
1.416.214.4654
greg@treasurymetals.com
Treasury Metals Inc.
Martin Walter
CEO
1.416.214.4654
martin@treasurymetals.com
www.treasurymetals.com

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