Nevsun Announces "Bought Deal" Financing Increased to CDN $20,000,000

NEVSUN ANNOUNCES “BOUGHT DEAL” FINANCING
 INCREASED TO CDN$20,000,000

June 24, 2005
 

This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.

Nevsun Resources Ltd. (“Nevsun”) (NSU: TSX and AMEX) is pleased to announce that it has received a receipt for its final short form prospectus that was filed on June 17, 2005 (see news release of June 15, 2005).  As a result of the exercise of an overallotment option by the syndicate of underwriters led by Canaccord Capital Corporation and including First Associates Investments Inc., Haywood Securities Inc. and TD Securities Inc, the offering now relates to the sale of 8,000,000 Units at a price of $2.50 per Unit to raise gross proceeds of $20,000,000. Each Unit consists of one common share and one-half of one transferable share purchase warrant, each whole warrant exercisable for three years at an exercise price of $3.25 per share.  The closing date of the Offering is expected to occur on or about June 29, 2005.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.  This release does not constitute an offer for sale of securities in the United States.