TSXV: SFR VANCOUVER, Aug. 29 /CNW/ - Starfire Minerals Inc. (TSXV: SFR) is pleased to announce that further to its news release of August 3, 2006, the Company has closed the first tranche of its private placement and has issued a total of 5,357,138 flow through units to the MineralFields Group at $0.28 per unit for total proceeds of $1,500,000. Each flow-through unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to acquire one additional share for a period of 2 years from the date of issue at an exercise price of $0.45 in the first year and $0.60 in the second year. A restriction on the warrants provides that if the Company's shares close at $0.60 or higher in the first year and $0.85 or higher in the second year on the TSX Venture Exchange for 20 consecutive trading days, then the warrants must be exercised within 30 calendar days of express written notice to the subscriber or they will be cancelled. In connection with this closing, the Company has issued an aggregate of 267,856 shares and 535,714 share purchase warrants as a finder's fee. Each warrant entitles the holder to acquire one share for a period of 2 years from the date of issue at an exercise price of $0.45 in the first year and $0.60 in the second year. A restriction on the warrants provides that if the Company's shares close at $0.60 or higher in the first year and $0.85 or higher in the second year on the TSX Venture Exchange for 20 consecutive trading days, then the warrants must be exercised within 30 calendar days of express written notice to the subscriber or they will be cancelled. All securities issued pursuant to this private placement are subject to a Canadian hold period expiring December 22, 2006. About Starfire: --------------- Starfire Minerals Inc. includes uranium, nickel and precious & base metal divisions with ten Canadian properties in Ontario, Quebec and British Columbia. A drilling program is currently underway on the companies 100% owned Langmuir South Nickel Property in Timmins Ont. Drill results are pending. A field crew has commenced work on the Company's Porphyry Pearl Gold Copper Property in the Toodoggone region of North-Central B.C. The Toodoggone Mineral Belt hosts several large Porphyry copper gold reserves and has several epithermal high grade Gold silver deposits that have been mined or are being mined. A further crew has been dispatched to the Company's Cross-Structure Uranium Property 700 miles east of MontrDeal, Que. Follow up exploration is planned on this property as a result of encouraging Uranium showings delineated from its Airborne Radiometric and Magnetic survey and a limited ground work completed in the fall of 2005. The Company has authorized an Airborne Radiometric and Magnetic Survey, to be flown on 3 of its 4 Uranium Properties. (The Cross-Structure airborne survey was completed last year). Results from these surveys will allow the Company to prioritize prospective target on these properties. All exploration work is being subcontracted to experienced contractors with a proven track record, the necessary equipment and qualified personnel. The Company plans to continue work throughout the summer and fall and will disseminate results from operations as they become available. About Mineral Fields: --------------------- Mineral Fields Group is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about Mineral Fields Group is available at www.mineralfields.com. ON BEHALF OF THE BOARD OF DIRECTORS OF STARFIRE MINERALS INC. "Dan Mosher" ------------------------- Dan Mosher President/CEO THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.