July 10

Raytec Announces Closing of Brokered Private Placement of Units and Flow-Through Shares, Filing of NI 43-101 Report and Formal Grant of Potash Permit by the Government of Saskatchewan

Raytec Metals Corp. (the \"Company\") (TSX-V: RAY) announces today that it has closed its $25,000,200 brokered private placement led by Canaccord Capital Corporation and including Integral Wealth Securities Limited (together, the \"Agents\"). Pursuant to the Private Placement, the Company has issued an aggregate of 14,166,700 units (\"Units\") at a price of $1.20 per Unit for gross proceeds of $17,000,040 (including Units sold under the Over-Allotment Option granted to the Agents) and 5,714,400 flow through shares (\"FT Shares\") at a price of $1.40 per FT Share for gross proceeds of $8,000,160 (including FT Shares sold under the Over-Allotment Option granted to the Agents). Each Unit consisted of one common share and one transferable common share purchase warrant (\"Warrant\"). Each Warrant will entitle the holder to subscribe for one additional common share at a price of $1.60 for a period of 2 years from the date of closing.

As compensation for their services in connection with the private placement, the Company paid the Agents and an arms\' length finder cash commissions totaling $1,750,014 and issued a total of 1,540,488 non-transferable warrants entitling the holders to acquire up to 1,540,488 common shares of the Company at a price of $1.60 per common share for a period of 2 years from the closing date. Canaccord Capital Corporation was also granted a corporate finance fee of 100,000 Units in connection with the private placement.

The gross proceeds of the private placement of FT Shares will be used for general exploration expenditures on the Company\'s Ontario and Saskatchewan properties which will constitute Canadian Exploration Expenditures (\"CEE\"). The net proceeds raised from the issuance of Units will be used for the advancement of the Company\'s mineral assets and for general working capital purposes.

All securities issued under the private placement are subject to a hold period expiring on November 11, 2008.

Formal Grant of Potash Permit by the Government of Saskatchewan and Filing of NI 43-101 Report

The Company is also pleased to announce that the Government of Saskatchewan, Energy and Resources, Mines Branch has issued a permit to prospect for subsurface minerals for KP441, to Kulwant Malhi. KP 441 (the \"Langham Potash Project\") is located in Saskatchewan and covers an area of approximately 88,320 acres in central Saskatchewan, in an area of both highly prospective properties and producing potash mines, including Potash Corp\'s Cory Mine, located 20 km south of the property. The Langham Potash Project is subject to an option agreement between the Company and Mr. Malhi.

The Company has today filed on the SEDAR website at www.sedar.com its National Instrument 43-101 \"Technical Report Concerning Subsurface Mineral Permit Application KP 441, Langham Area Saskatchewan\" dated July 7, 2008 (the \"Report\") prepared by Agapito Associates, Inc (\"Agapito\") -- co-authored by Dr. Michael Hardy, P.E. and Joseph E. Crawford L.P.G, both Qualified Persons under NI 43-101. Agapito is a professional organization of engineers and geologists with over 25 years experience in Mining and Civil Engineering and Geology.

Information from the Report was included in the Company\'s June 10, 2008 news release. The final version of the NI 43-101 report contains corrections to the June 10 summary, which are indicated in the following two paragraphs.

Recoverable in-place potash equivalent tonnes, using standard deductions and an overall recovery of 36% (10% geologic anomaly and expected 40% extraction), are calculated to a net recoverable Indicated resource of 12.49 million metric tonnes (\"MMT\") of K2O and a net recoverable Inferred resource of 12.24 MMT (corrected figure) of K2O.

The Report estimates a total Indicated mineralization of 148.02 MMT grading 23.44% K2O and an additional Inferred mineralization of 162.97 MMT (corrected figure) grading 20.85% K2O (corrected figure).

Indicated Mineral Resources and Inferred Mineral Resources have been estimated based on the distance from cored and assayed drill holes using best available practice similar to that adopted by Mosaic at the Belle Plaine operations. The distance from an existing cored and assayed drill hole for inclusion of resource in the inferred and indicated categories is as follows:

- Indicated Mineral Resource: 1-Mile (1.60 km) radius - Inferred Mineral Resource: 5-Mile (8.05 km) radius

The Indicated Mineral Resource and Inferred Mineral Resource has been estimated based on the radius from the cored drill holes, the estimated extent of the beds with grade and thickness greater than estimated cutoff values of 1.1m and 12% K2O, the thickness and grade of the selected mining intervals at the corehole locations, the loss factors for unaccounted geologic anomalies assumed to be 10%, an areal extraction ratio of 40%, and losses incurred by removal of resources in buffer zones.

This resource estimate determined using the Volumetric and Borehole Radius Analysis method, is based on two drill holes approximately 3.2 kilometers apart in the southwest corner of the KP441 disposition. This resource covers an area of approximately 17% of the KP441 disposition or approximately 5% of the Company\'s 291,330 acres under application.

It is important to note that the information used by the authors in preparation of the resource estimate only accounts for the extreme southwest corner of KP441. The potash resource remains open to the north and east of the study area, truncated to the south and west by the limits of the Company\'s potash lease application boundary.

The Company\'s disclosure of a technical or scientific nature has been reviewed by Michael Hardy, P.E. and co-author of the Report. Dr. Hardy is a Qualified Person under National Instrument 43-101.

On behalf of the Board, RAYTEC METALS CORP. Casey Forward, Chief Financial Officer

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

Statements in this press release, other than purely historical information, including statements relating to the Company\'s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact: RAYTEC METALS CORP. Suite 1128 - 789 West Pender Street, Vancouver, BC, V6C 1H2 Tel: (604) 669-9330 Fax: (604) 669-9335