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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Search Minerals Inc. ("Search" or the "Company") (TSX VENTURE:SMY) is pleased to announce that, further to its news releases issued on December 10, 2010 and January 7, 2011, it closed on February 25, 2011 the second tranche of its non-brokered private placement of 13,611,112 units (the "Units") at a price of $0.45 per Unit for gross proceeds of $6,125,000.40 (the "Second Tranche"). Each Unit consists of one common share of the Company and one transferable common share purchase warrant of the Company (a "Warrant"). Each Warrant will entitle the holder to acquire an additional common share of the Company until February 25, 2014 at a price of $0.70 per share during the first year, $0.80 during the second year and $0.90 during the third year.

All securities issued pursuant to the Second Tranche are subject to a hold period expiring on June 26, 2011. No finders fees or commissions are payable in connection with the Second Tranche. The Second Tranche remains subject to final approval of the TSX Venture Exchange.

The proceeds from the Second Tranche will be used to finance the continued exploration of its properties located in the Port Hope Simpson district, Labrador, and for general working capital purposes.

The Company also announces that it has granted incentive stock options to two nominee consultants of Repalla Inc. and Sercor Ltd., both of which subscribed for Units in the Second Tranche, for an aggregate of 875,000 common shares of the Company for a period of five years at a price of $0.60 per share. These options have been granted pursuant to the Company's Stock Option Plan.

A third and final tranche of the private placement pursuant to which the Company anticipates issuing an additional 3,888,888 units for additional proceeds of $1,749,999.60 is expected to close later this week.

About Search Minerals Inc.

Search Minerals Inc. (TSX VENTURE:SMY) has a strong and dedicated management team with outstanding capabilities in separate but related mining activities, any of which has the potential to generate significant shareholder value. Search's mineral exploration team is led by Vice President Exploration Dr. Randy Miller. Dr. Miller is responsible for directing the current exploration programs on Search's large land position in Labrador. Search also has a technology arm headed up by Dr. David Dreisinger, Chair of Hydrometallurgy at the University of British Columbia in Vancouver, Canada, and a consultant to several major international mining companies. Search's business strategy is to fund new ideas or concepts in the mineral exploration or metallurgical fields that have low initial costs and high potential.

Cautionary Statement:

Certain disclosures in this release with respect to the proposed financings and use of proceeds constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company's operations as a mineral exploration company. Such risks and uncertainties may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the financings. Readers are cautioned not to place undue reliance on forward-looking statements. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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 of the adequacy or accuracy of this release.