ROSE.L Regulatory News (ROSE)

VANE Minerals plc (AIM:VML)

("VANE" or the "Company")

Convertible Loan Notes

VANE is pleased to announce that the Company has reached an agreement with the holders of its convertible loan notes.

VANE currently has two convertible loan notes outstanding, the first for £1m, issued to Geiger Counter Limited in May 2007 which was due to be repaid at end of May 2012; and the second loan, amounting to £500,000, was issued to City Natural Resources High Yield Trust plc in September 2007 and was due to be repaid at end of September 2012. Both funds are managed by New City Investment Managers.

The principal points of the agreement are:

·; VANE will repay £500,000 on 31 May 2012 out of existing cash resources to settle the loan with City Natural Resources High Yield Trust plc

·; VANE will carry forward a loan note of £1 million, issued to Geiger Counter Limited (the "new loan note")

·; The maturity date for the new loan note is 31 May 2017

·; The new loan note will continue to attract interest at 8% per annum, payable every six months

·; The new loan note is convertible by the holder, at any time, into 80 million ordinary shares in VANE at a price of 1.25p (a 34 per cent premium to the current mid-market price of 0.935p per ordinary share as at the close of business on 22 May 2012)

·; The Company may repay the loan note early in the event that i) the share price is equal or greater than 2.5p or ii) after three years, the share price is equal or greater than 1.25p. The amount which the Company would have to pay in these circumstances is calculated by multiplying the prevailing share price by the number of shares into which the loan note is convertible at 1.25p per Ordinary Share

·; VANE has undertaken to seek shareholder approval to dis-apply the relevant pre-emption rights at a general meeting, thus enabling conversion of the new loan note

David Newton, Chief Executive of VANE, commented:

"I am delighted to have reached this agreement with the loan note holders. The maximum dilution to existing shareholders would equate to only 15.3% of the enlarged share capital of the Company and the agreement allows the Company to continue to devote its current cash resources to the development of its highly promising copper and uranium exploration assets."

For further information, please contact:

Simon Rothschild