December 23, 2011

Mediterranean Closes Private Placement

Vancouver, B.C., - Mediterranean Resources Ltd. (TSX: MNR; Frankfurt: MHM1) (‘’Mediterranean" or the "Company’’) announces that, further to its news release of December 7, 2011, it has raised gross proceeds of $1,500,850 by way of a non-brokered private placement of 11,545,000 units at a price of $0.13 per unit.  Each unit consists of one common share and one warrant (each warrant exercisable at $0.25 per share for 24 months). The securities issued under the financing are subject to a four month hold period.

Williams de Broë Limited, an investment firm based in London, UK, received a finder’s fee of $45,026 in connection with the financing.

Use of Proceeds

The net proceeds received by the Company from the sale of these units will be used for advancement of the Company’s Red Mountain projects, and for general working capital purposes.

Signed on behalf of the Board of Directors.

For further information please contact:

Christopher Ecclestone
Chief Executive Officer

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction. The securities to be issued pursuant to the Offering by the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any states of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

Certain information set out in this News Release constitutes forward-looking information, which may include information relating to the exploration and development of the Company’s properties. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to risks, uncertainties and other factors that are beyond the control of the Company, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.