Tinka Resources Limited Announces $5 Million Financing

VANCOUVER, June 1, 2011 /CNW/ - Tinka Resources Limited (the "Company") (TSXV: TK) (Frankfurt: TLD) (Pinksheets:TKRFF) is pleased to announce that it has engaged Union Securities Ltd. (the "Agent") to act as agent, on a reasonable commercial efforts basis, for a private placement (the "Offering") to raise up to $5 million by the issuance of up to 10 million units of the Company (each a "Unit") at a purchase price of $0.50 per Unit. Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one additional common share of the Company (a "Warrant Share") at an exercise price of $0.75 per Warrant Share for a period of 12 months following the closing (the "Closing Date") of the Offering, subject to an accelerated expiry date in the event that, after the date which is 4 months after the Closing Date, the closing price of the common shares of the Company listed on the TSX Venture Exchange is greater than or equal to $1.00 for a period of 10 consecutive trading days. In addition, the Agent has been granted an over-allotment option (the "Over-Allotment Option") to increase the Offering size by up to $750,000 (up to 1,500,000 Units) on the same terms as the Offering, exercisable at any time, in whole or in part, for a period of 30 days after the Closing Date. If the Over-Allotment Option is exercised in full, the total gross proceeds to the Company from the Offering will be $5,750,000.

In consideration for its services, the Agent will receive a cash commission equal to 8% of the gross proceeds from the sale of the Units (including the gross proceeds received from the sale of any Units issued upon exercise of the Over-Allotment Option) and options (the "Agent's Options") exercisable into that number of Units equal to 10% of the number of Units sold pursuant to the Offering (including any Units issued upon exercise of the Over-Allotment Option). The Agent's Options will be exercisable, in whole or in part, at any time up to 12 months following the Closing Date to acquire Units at an exercise price of $0.50 per Unit. The Company will also pay the Agent a work fee and reimburse the Agent for reasonable expenses incurred in connection with the financing.

The Offering is subject to the receipt of all necessary regulatory approvals, including acceptance by the TSX Venture Exchange. The securities issued under the Offering will be subject to a four month hold period under applicable Canadian securities laws.

The net proceeds from the Offering will be used to finance exploration on the Company's Colquipucro and Tibillos projects located in Peru and for general corporate purposes.


On behalf of the Board,

"Andrew Carter"
Andrew Carter, President & CEO



Forward Looking Statements

This Company Press Release may contain certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.



For further information:

Company information contact:
Mariana Bermudez at (604) 699 0202 or
email:mbermudez@chasemgt.com
website: www.tinkaresources.com

Investor Information Contact:
Bay Street Connect,
Michael D'Amico
Tel: 1.647.500.6023
Email: michael@baystreetconnect.com