Duluth Metals and Franconia Minerals Complete Plan of Arrangement 

TORONTO - Duluth Metals Limited and Franconia Minerals Corporation reported the successful completion of their previously announced plan of arrangement.

The Arrangement was completed on the terms and conditions of an arrangement agreement between Duluth and Franconia dated December 20, 2010, as amended, and effected by way of a plan of arrangement under the Business Corporations Act (Alberta).

Pursuant to the Arrangement, Duluth has acquired all of the issued and outstanding common shares of Franconia that it did not already own in a transaction valued at approximately C$77 million. Franconia's assets are expected to be rolled into Twin Metals Minnesota LLC ("TMM"), a Duluth (60%) and Antofagasta plc ("Antofagasta") (40%) joint venture which includes the Nokomis deposit, one of the world's largest undeveloped deposits of copper, nickel and precious metals.

Some of Franconia's deposits and their land holdings are contiguous with those of TMM, and the acquisition will consolidate TMM's position in the Duluth Complex region in northeastern Minnesota. Four deposits with NI 43-101 compliant Mineral Resources have been delineated: the Spruce Road Deposit; the Nokomis Deposit; the Maturi Deposit, and the Birch Lake Deposit. The joining of land positions between TMM and Franconia Minerals gives TMM over 25,000 acres of land/mineral interests and increases TMM's overall qualified resources that may support a larger scale mine development plan. Christopher C. Dundas, the Chairman and CEO of Duluth, stated: "The merger between Duluth and Franconia will provide TMM the platform to plan the development of one the world's largest nickel-copper-PGM deposits. This merger potentially creates a stronger development project of much larger size, scale and mine life for TMM. Our partnership with Antofagasta will provide the financing and execution capability necessary to develop this high economic impact project for Northern Minnesota." The company's address is 80 Richmond St. West, Suite 1500, Toronto, ON M5H 2A4, 416-369-1500, fax: 416-369-1501.