Eskay Mining Announces Proposed Flow-Through Offering of Up to $2,520,000 and Working Capital Offering of Up to $1,500,000

TORONTO, ONTARIO -- (Marketwire) -- 05/11/10 -- ESKAY MINING CORPORATION ('Eskay' or the 'Corporation') (TSX VENTURE: ESK)(FRANKFURT:878 985)(BERLIN:878 985) wishes to announce that it is offering up to 8,400,000 units on a flow-through basis (the 'FT Units') priced at $0.30 per FT Unit with each FT Unit consisting of one (1) flow-through common share (the 'FT Share') and one-half (1/2) of a share purchase warrant (a 'FT Warrant') for gross proceeds of up to $2,520,000 (the 'FT Offering'). Each full FT Warrant entitles the holder to acquire a further common share of the Corporation at a price of $0.45 per common share until the earlier of: (i) the date which is twenty-four (24) months following the closing; and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at least $0.60 for ten (10) consecutive trading days, and the 10th trading day (the 'Final Trading Day') is at least four (4) months from the Closing Date, the date which is thirty (30) days from the Final Trading Day (the 'Trigger Date').

In addition, Eskay is offering up to 6,000,000 working capital units (the 'WC Units') priced at $0.25 per WC Unit with each WC Unit consisting of one (1) common share (the 'WC Share') and one (1) share purchase warrant (a 'WC Warrant') for gross proceeds of up to $1,500,000 (the 'WC Offering'). Each WC Warrant entitles the holder to acquire a further common share of the Corporation at a price of $0.40 per common share until the earlier of: (i) the date which is twenty-four (24) months following the closing; and (ii) the Trigger Date.

The Corporation may pay a finder's fees and/or commissions in cash and/or securities to eligible parties.

Insiders of the Corporation may subscribe for up to 280,000 FT Units for proceeds of up to $84,000 and 400,000 WC Units for proceeds of up to $100,000, if available. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ('MI61-101') by virtue of the exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization.

The funds will be used for exploration on the Corporation's properties and for working capital.

This transaction is subject to the approval of the TSX Venture Exchange.

Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

Neither 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 release.

Contacts:

ESKAY MINING CORPORATION
info@kenrich-eskay.com
www.eskaymining.com