This is off Mineweb,However there is no media release on the...

This is off Mineweb,

However there is no media release on the website and I didnt see one on the KZl anns.if someone else has posted it, my apologies.

Mungana Goldmines IPO raises A$56.5 million
Wednesday , 02 Jun 2010

Mungana Goldmines Ltd (Mungana Goldmines') is pleased to advise that the Mungana Goldmines IPO has received acceptances for 59.5 million shares, raising a total of A$56.5 million and on behalf of the directors, I would like to thank all those involved in bringing this exciting new gold focused company to the market.

An updated timetable will be announced in due course.

Mungana Goldmines is now fully funded to carry out the exploration and development programs outlined in the prospectus. These programs, comprised predominantly of drilling in the Mungana and Red Dome area, are targeting an expansion of the current measured, indicated and inferred resource of 1.85 million ounces of gold to a level that is capable of sustaining production of 150,000 ounces of gold and 60,000 tonnes of copper concentrate annually.

Diamond drilling will commence later this month, with additional drilling capacity of both diamond and RC drilling rigs to be mobilised as soon as practicable. The exploration program is expected to provide investors with an extended period of positive news flow and resource upgrades as the program progresses.

Under the terms of the offer, Kagara Ltd will retain a 62.1% interest in Mungana Goldmines which will remain escrowed for two years. The issue was strongly supported by Kagara Ltd's retail shareholder base, together with Guangdong Foreign Trade Group and Prosperity Steel United Singapore who will become 16.0% and 8.3% shareholders respectively.

Mungana Goldmines' directors believe that the successful capital raising of A$56.5M in the current difficult investment climate clearly demonstrates the strong growth prospects of Mungana Goldmines' assets and the markets continuing interest in gold resource companies.

Valid applications have been accepted in full. Applicants can confirm their allocation by telephoning the Mungana Goldmines information line on 1300 880 923.

All applicants are responsible for determining and confirming the number of shares allocated to them prior to selling any shares. Applicants who sell Mungana Goldmines shares before receiving their allotment confirmation do so at their own risk.