Exile Resources Inc.
TSX VENTURE : ERI

Exile Resources Inc.

May 16, 2006 15:34 ET

Exile Resources Closes First Tranche of Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - May 16, 2006) -

Not for dissemination into the United States or through U.S. Newswire Services

Exile Resources Inc. (TSX VENTURE:ERI) is pleased to announce that it has closed the first tranche of its previously announced private placement led by Westwind Partners Inc. and MGI Securities Inc. (the "Agents"), to raise initial gross proceeds of approximately C$6,591,122.

In connection with the closing of the first tranche of the private placement, Exile Resources issued 13,182,244 units (the "Units") at a price of C$0.50 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant exercisable at a price of C$0.75 until (i) May 16, 2008; or (ii) in the event that the common shares of the Company commence trading on Tier 1 of the TSX Venture Exchange or the Toronto Stock Exchange prior to May 16, 2008, then May 16, 2011, subject in the latter case to the receipt of all necessary regulatory approvals including the approval of the stock exchange upon which the common shares may trade at the applicable time.

In connection with the closing of the first tranche, Exile Resources paid the Agents a commission together with broker warrants entitling the holders to acquire an aggregate of 922,757 Units.

The proceeds of this private placement will be used by Exile Resources for working capital and to fund its ongoing exploration programs in Africa.

The private placement will be effected pursuant to prospectus exemptions under applicable securities legislation and the overall private placement is expected to be completed in two tranches with the second tranche closing on or before June 5, 2006. All securities issued and issuable in connection with the closing of the first tranche of the private placement are subject to a hold period in Canada expiring September 17, 2006.

About Exile Resources Inc.

Exile Resources Inc. is an oil and gas exploration company with interests in the Brazeau River Project, located 160 km south west of Edmonton, Alberta. The Company is also pursuing oil and gas, exploration and development opportunities in Africa. Exile Resources Inc. and, prior to this private placement, had 18,760,979 issued and outstanding common shares. Please visit Exile Resource's web site for further information: www.exileresources.com.

To receive press releases from Exile, please email Julia@chfir.com and mention Exile Resources on the subject line.

The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

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