Malaga: Rights issue financing of $3.4 M

MONTREAL -- Malaga Inc. ("Malaga" or the "Company") (TSX: MLG) today announced the terms of a rights offering to existing shareholders to raise gross proceeds of up to approximately $3.43 million (the "Offering"). The Company will be offering to eligible holders of its outstanding common shares of record as at the close of business on July 8, 2009 (the "Record Date") approximately 137 million rights (each, a "Right") to subscribe for up to approximately 34.3 million common shares of the Company (each, a "Common Share") on the terms set forth in a rights offering circular (the "Circular") to be mailed by the Company to shareholders (and which will also be available on SEDAR). Each such holder will receive one Right for each Common Share held on the Record Date. Four Rights will entitle the holder to purchase one Common Share at a price of $0.10. The Rights will expire at 5:00 p.m. (Montreal time) on August 5, 2009. Shareholders who exercise all of their Rights will also be entitled to acquire additional Common Shares pursuant to an additional subscription privilege to be provided for under the Offering, the terms of which are described in the Circular.

Net proceeds of the Offering will be approximately $3.33 million, assuming that all of the Rights are exercised. The Company intends to use the proceeds of the Offering towards the development of the Pasto Bueno Property, including exploration and development of the Pasto Bueno mine and improvement of the mill and the balance, for general corporate purposes.

The Rights will be listed on the Toronto Stock Exchange (the "TSX") and are expected to commence trading on July 6, 2009. The TSX has also approved the listing of the Common Shares issuable upon exercise of the Rights. The Common Shares of the Company will commence trading "ex-rights" on July 6, 2009.

The Rights and underlying Common Shares are not being offered to, and the Rights may not be exercised by, persons who are residents of any jurisdiction other than each of the provinces and territories of Canada. Reference is made to the section in the Circular entitled "Ineligible Shareholders".

No placement agent was used for this transaction.

This press release is not an offer to sell nor the solicitation of an offer to buy any securities of the Company.

THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.

ABOUT MALAGA INC.

Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, through increasing its tungsten concentrate production, continuing the exploration of the Pasto Bueno property, and through strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.

SOURCE: MALAGA INC.

Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224

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