Conquest Resources Limited

Conquest Resources Limited

January 11, 2005 10:18 ET

Conquest Resources Limited: Private Placement Financing of $200,000 Closes & Drilling to Commence at King Bay Gold Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CONQUEST RESOURCES LIMITED

TSX VENTURE SYMBOL: CQR

JANUARY 11, 2005 - 10:18 ET

Conquest Resources Limited: Private Placement
Financing of $200,000 Closes & Drilling to Commence at
King Bay Gold Project

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) -

PRIVATE PLACEMENT FINANCING OF $200,000 CLOSES

DRILLING TO COMMENCE AT KING BAY GOLD PROJECT

Conquest Resources Limited (TSX VENTURE:CQR) reports that the TSX
Venture Exchange has accepted for filing documentation with respect to a
Non-Brokered Private Placement announced December 24, 2004, and that the
financing has closed. The securities issued pursuant to the placement
will have a hold date of May 2, 2005.

The private placement comprised 1,600,000 flow-through common shares at
a subscription price of $0.125 per share. Insiders of the Corporation
have subscribed for 480,000 shares of the placement (30%). The gross
proceeds of the placement will be used for the exploration of the
Company's King Bay Gold Project at Sturgeon Lake, Ontario.

A drilling contract has been awarded and Conquest plans to commence a
first phase drill programme at King Bay in the last week of January to
evaluate targets under the waters of King Bay for a total of
approximately 1,500 metres of drilling in 6-10 shallow holes.

High grade gold values have been recorded in blue-black quartz boulders
in three distinct boulder trains with the highest value of 521.1gm/t
gold (15.2 opt). The average grade of boulders sampled from the Central
train is 18.2 gm/t gold (0.53 opt) while the Eastern train averages 18.9
gm/t gold (0.55 opt) and the Western train averages 5.14 gm/t gold (0.15
opt). Significantly anomalous gold values also occur within the
surrounding soils with values up to 32.9 gm/t gold (0.96 opt). Gold
mineralization is associated with pyrite and pyrrhotite and occurs in
veins associated with quartz feldspar porphyries of the North Arm
plutonic suite.

ABOUT CONQUEST

Conquest is exploring several gold projects in Ontario. These include
the Alexander gold project at Red Lake, the King Bay gold project at
Sturgeon Lake, the Smith Lake gold project at Missanabie, and the
Aurora, Sunday Lake and Nash Creek gold projects at Detour Lake
(Ontario). Cash and short-term investments at September 30,2004 amounted
to approximately $2.2million.

There are currently 60,196,677 shares of Conquest issued and outstanding.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Conquest Resources Limited
    Terence N. McKillen
    President
    (416) 362-8243
    or
    Conquest Resources Limited
    D. Brett Whitelaw
    Vice-President
    (604) 699-2320
    or
    Conquest Resources Limited
    John F. Kearney
    Chairman
    (416) 362-6686
    info@conquestresources.net
    www.conquestresources.net
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.