Update on Niocan's Strategic Process

MONTREAL, QUEBEC--(Marketwire - March 4, 2011) - Niocan Inc. ("Niocan" or the "Company") (TSX:NIO) is pleased to provide the following update regarding its ongoing strategic process.

As a result of receiving previously announced acquisition proposals from both Nio-Metals Holdings LLC ("Nio-Metals") and Augyva Mining Resources Inc. ("Augyva") in mid-January, the Company formed a special committee of directors (the "Special Committee") and engaged legal and financial advisors to evaluate these opportunities and to explore other potential strategic alternatives, all with the objective of maximizing shareholder value.

On March 2, 2011, Nio-Metals announced by press release that it has withdrawn its proposal for a business combination with the Company. The Company has had numerous discussions with Nio-Metals regarding its proposal and the Special Committee, with the advice of its advisors, concluded that the price proposed by Nio-Metals was inadequate and not fair to the Company's shareholders. While the Special Committee is disappointed with Nio-Metals' decision, it remains willing to continue discussions with Nio-Metals if Nio-Metals is willing to propose a transaction that adequately values the Company and which is in the best interests of all of its shareholders.

The Company also looks forward to receiving Augyva's previously announced formal takeover bid and assessing the terms and conditions of that offer. 

In addition, the Special Committee is actively engaged in the process of exploring and evaluating other strategic alternatives. The Company has set up a data room and is currently in discussions with a number of additional third parties who have expressed interest in exploring a transaction with the Company. 

The Special Committee is committed to pursuing alternatives that will maximize shareholder value and looks forward to providing future updates as the strategic process progresses.

About Niocan

Niocan's mission is to become a ferroniobium producer as soon as possible, following the issuance of a Certificate of Authorization from the Ministry of Sustainable Development, Environment and Parks for its Oka niobium property. Mining assets include mining rights in two (2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and the Hudson Bay Great Whale Iron property covering 17,098 acres.

2000 rue Peel, bureau 760

Montréal (Québec) H3A 2W5

Tél: (514) 288-8506

Fax: (514) 843-4809

On behalf of the Board of Directors

FORWARD LOOKING STATEMENTS

Certain statements contained in this press release are forward-looking and are subject to numerous risks and uncertainties, know and unknown. For information identifying known risks and uncertainties, relating to the issuance by the Ministry of Environment of the Certificate of Authorization to build the mine in Oka, financial resources, market prices, exchange rates, politicosocial conflicts, competition, the purchase of the old St-Lawrence Columbium mine site from the Municipality of Oka should the Certificate of Authorization be issued, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk and Uncertainties Section of the Corporation's most recent Management's Discussion and Analysis, which may be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.