POM Polymet Mining Corp

PolyMet Mining Corp. (TSX: POM)(NYSE Amex: PLM) ("PolyMet" or the "Company") today reported its financial results for the three months ended April 30, 2011, which have been filed at www.polymetmining.com and on SEDAR and EDGAR.

The Canadian Accounting Standards Board requires all public companies to adopt International Financial Reporting Standards ("IFRS") for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. These are PolyMet's first condensed interim consolidated financial statements prepared in accordance with IFRS. All amounts are in U.S. funds.

PolyMet controls 100% of the development-stage NorthMet copper-nickel-precious metals ore-body and the nearby Erie Plant, located near Hoyt Lakes in the established mining district of the Mesabi Iron Range in northeastern Minnesota.

Financial Highlights

--  Reconciliation from Canadian GAAP to IFRS: The most significant changes
    relate to the Asset Retirement Obligation. Under IFRS, the future
    obligation is discounted using a liability specific risk-free interest
    rate as opposed to a higher, company credit adjusted risk-free interest
    rate. The affect of this is to increase the book value of the Erie Plant
    with a slightly larger increase in the long-term environmental liability
    at the time of the acquisition - the difference being a larger accretion
    expense. The fair value of the convertible debt and slightly different
    accounting for subsequent extension of the term of the debt also cause
    minor some changes. The net affect is to reduce total equity at January
    31, 2011 by $0.323 million to $102.295 million and to increase the total
    comprehensive loss in the year ended January 31, 2011 by $0.401 million
    to $7.761 million.
--  At April 30, 2011 PolyMet had cash and cash equivalents of $5.909
    million compared with $10.361 million at January 31, 2011. In November
    2010, Glencore AG ("Glencore") agreed to purchase 15 million shares of
    PolyMet common stock at $2.00 per share for gross net proceeds of $30
    million. The first tranche of this private placement, comprising 5
    million shares, closed on January 17, 2011. The second tranche of 5
    million shares is scheduled to close on or before October 17, 2011 and
    the final tranche of 5 million shares is scheduled to close on or before
    October 15, 2012.
--  During the three months ended April 30, 2011, PolyMet made scheduled
    repayments of $0.5 million notes payable to Cliffs Natural Resources,
    Inc. related to the acquisition of the Erie Plant.
--  Loss for the three months ended April 30, 2011 was $1.319 million
    compared with $0.918 million in the prior year period. General and
    administrative expenses were $1.183 million compared with $0.851 million
    for the prior year period. Excluding non-cash stock-based compensation,
    general and administrative expense was $0.647 million compared with
    $0.841 million for the prior period, reflecting the Company's continued
    cost-cutting efforts during the past year.
--  PolyMet invested $2.914 million into its NorthMet project during the
    three months ended April 30, 2011, compared with $4.775 million in the
    prior year period. As of April 30, 2011 PolyMet had spent $33.648
    million on environmental review and permitting, of which $27.223 million
    has been spent since the NorthMet project moved from exploration to
    development stage.

Douglas Newby, PolyMet's Chief Financial Officer stated, "The transition to IFRS has gone smoothly and I am pleased that we have completed these interim statements ahead of the regulatory schedule. I believe that we have taken the necessary actions to ensure that we comply with reporting timelines in the future.

"We expect to finalize timing of the second tranche of the November 2010 private placement with Glencore imminently," he continued.

Key Statistics - unaudited
(in '000 US dollars, except per share amounts)
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Balance Sheet                            April 30, 2011    January 31, 2011
                                    ---------------------------------------

 Cash and equivalents                             5,909              10,361
 Working capital                                    693               4,199
 Total assets                                   155,975             156,614
 Long term liabilities                           43,773              43,717
 Shareholders' equity                           102,172             102,295
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                                               Three months ended
                                                    April 30,
                                    ---------------------------------------
Income Statement                                   2011                2010
                                    ---------------------------------------

 General and administrative
  (expense)                                      (1,183)               (851)
 Other income (loss)                               (136)                (67)

  Income (loss)                                  (1,319)               (918)

  Income (loss) per share                         (0.01)              (0.01)
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Investing Activities
 NorthMet Property                                2,914               4,775
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Weighted average shares outstanding         154,913,235         148,989,218
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Minnesota State Government

Most State of Minnesota government functions ceased operations on July 1, 2011 owing to a budget impasse between the Governor and the Minnesota Legislature. This shutdown has placed a temporary halt on the work of the Minnesota Department of Natural Resources ("MDNR"), which is the lead State agency responsible for PolyMet's Supplemental Draft Environmental Impact Statement (SDEIS).

The federal co-lead agencies, the US Army Corps of Engineers and the US Forest Service, are providing oversight for the EIS process. The third party contractor responsible for drafting the SDEIS is continuing to work during the shutdown, as will PolyMet's EIS contractors. PolyMet expects that the SDEIS process will continue to advance, although a prolonged state shutdown could affect the timing of completion of the SDEIS.

About PolyMet

PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100% of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet Mining Corp. has completed its Definitive Feasibility Study and is seeking environmental and operating permits to enable it to commence production. The NorthMet project is expected to require approximately one-and-a-quarter million hours of construction labor and create approximately 360 long-term jobs, a level of activity that will have a significant multiplier effect in the local economy.

POLYMET MINING CORP.

Joe Scipioni, CEO

This news release contains certain forward-looking statements concerning anticipated developments in PolyMet's operations in the future. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimates," "potential," "possible," "projects," "plans," and similar expressions, or statements that events, conditions or results "will," "may," "could," or "should" occur or be achieved or their negatives or other comparable words. These forward-looking statements may include statements regarding our beliefs related to the expected proceeds and closing of the registered direct offering, exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, actions by government authorities, including changes in government regulation, the market price of natural resources, costs, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet or due to actual facts differing from the assumptions underlying its predictions. PolyMet's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations and opinions should change.

Specific reference is made to PolyMet's most recent Annual Report on Form 20-F for the fiscal year ended January 31, 2011 and in our other filings with Canadian securities authorities and the Securities and Exchange Commission, including our Report on Form 6-K providing information with respect to our operations for the year ended January 31, 2011 for a discussion of some of the risk factors and other considerations underlying forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: PolyMet Mining Corp. - Corporate Douglas Newby Chief Financial Officer +1 (212) 867-1834 dnewby@polymetmining.com PolyMet Mining Corp. - Media LaTisha Gietzen VP Public, Gov't & Environmental Affairs +1 (218) 225-4417 +1 (218) 225-4429 (FAX) lgietzen@polymetmining.com PolyMet Mining Corp. - Investors Crystal Agresti +1 (845) 742-8153 cagresti@polymetmining.com PolyMet Mining Corp. Alex Macdougall +1 (226) 663-3000 amacdougall@polymetmining.com www.polymetmining.com