Paramax Resources Ltd. Announces Further Details of Business Combination with MEGA Graphite Inc.

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Paramax Resources Ltd. (PXM-H.V), today announced further details on the proposed transaction with MEGA Graphite Inc.

On May 8, 2013, Paramax entered into a business combination agreement with MEGA Graphite and 2369505 Ontario Inc., a recently incorporated wholly-owned subsidiary of Paramax.

Former holders of common shares of MEGA Graphite ("MEGA Graphite Shares") will receive one common share of Paramax, at a deemed price of $0.30 per Paramax Share, for approximately each 9.366832 MEGA Graphite Shares held. Following completion of the Transaction, former holders of MEGA Graphite Shares will hold approximately 50% of the issued and outstanding common shares of the Resulting Issuer and former holders of Paramax Shares will hold approximately 50% of the issued and outstanding Resulting Issuer Shares. The Business Combination Agreement provides for the payment of $150,000, in respect of the reimbursement of expenses, payable in certain circumstances.

The Board of Directors of Paramax has unanimously approved the proposed Transaction.

Trading in Paramax shares is halted.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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