Flinders announces closing of private placement for gross proceeds of $15 million

VANCOUVER, April 17, 2012 - Flinders Resources Limited ('Flinders'). Further to Flinders' press releases dated March 26, 2012 and March 27, 2012, Mr. Martin McFarlane, President & CEO, is pleased to announce that Flinders has closed its private placement raising gross proceeds of $15,000,001.

The net proceeds of the private placement will enable Flinders to substantially advance the Kringel graphite mine in Sweden toward production.

The private placement was comprised of a brokered private placement (the 'Brokered Offering') and a non-brokered private placement (the 'Non-brokered Offering').

The Brokered Offering raised gross proceeds of $10,002,400.50 with a syndicate of agents led by Cormark Securities Inc. and including Euro Pacific Canada Inc., Dundee Securities Ltd., Byron Capital Markets Ltd. and Octagon Capital Corporation (together, the 'Agents').

The Brokered Offering involved the issuance of 5,883,765 units at a price of $1.70 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at $2.20 per common share for a period of two years from the date of closing of the Brokered Offering.

In consideration of the Agents' services, Flinders paid the Agents a cash commission of 6% of the gross proceeds of the Brokered Offering. The Agents were also issued compensation warrants equal to 6% of the units sold pursuant to the Brokered Offering. Each compensation warrant entitles the holder to acquire one common share of Flinders at a price of $1.70 for a period of two years from the date of closing of the Brokered Offering.

The Non-brokered Offering raised gross proceeds of $4,997,600.50. The Non-brokered Offering involved the issuance of 2,939,765 units at a price of $1.70 per unit, each unit having the same terms and conditions as the units issued in the Brokered Offering. In connection with the Non-brokered Offering, Flinders paid to certain finders a cash commission of 6% of certain proceeds of the Non-brokered Offering and issued 159,495 finder warrants, each finder warrant having the same terms and conditions as the compensation warrants.

The securities issued pursuant to the Brokered and Non-brokered Offerings are subject to a four-month hold period from the date of closing of such offerings.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or for the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.


On behalf of the Board

'Martin McFarlane'
Martin McFarlane, President and CEO



Certain information set out in this news release, including but not limited to the use of proceeds of the Brokered and Non-brokered Offerings and the advancement of the Kringel graphite mine in Sweden towards production, may constitute forward-looking information. Forward-looking statements are based upon the opinions and expectations of management of Flinders as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although Flinders believes that the expectations reflected in the forward-looking statements contained in this new release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. These statements are made as at the date hereof and unless otherwise required by law, Flinders does not intend, or assume any obligation, to update these forward-looking statements.

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

Not for distribution to U.S. news wire services or dissemination in the United States



CONTACT:

Flinders Resources Limited
Jim Powell
+1 647 478 5806
info@flindersresources.com