Galahad Metals Inc.

Galahad Metals Inc.

August 25, 2010 13:24 ET

Galahad Metals Announces a Correction of Current Private Placement Terms

OTTAWA, ONTARIO--(Marketwire - August 25, 2010) - Galahad Metals Inc (TSX VENTURE:GAX) announced today an amendment to its news release of July 21, 2010. The July 21st release stated that the warrants issued with respect to the Regular Units was exercisable at $0.10 per warrant. That was incorrect. The correct price is $0.07 per warrant. 

The Company may issue up to a maximum of 6,000,000 (the "Regular Units") at a price of $0.05 per unit with each unit comprised of one common share and one common share purchase warrant, each whole warrant is exercisable at an amended price of $0.07 per common share from the date of issue up to and including August 31, 2012. The gross proceeds of up to $300,000 from Regular Units will be used for working capital and to pay Board of Land Management fees due on the Company's Bottle Creek, Nevada property.

The flow-through offering remains unchanged and consists of an aggregate of flow-through common shares and warrants of the Issuer equal to a maximum of 4,300,000 (the "Flow-Through Units") for gross proceeds of up to $301,000. Each flow-through unit is priced at $0.07 per unit and consists of one flow-through common share and one Warrant. Each Warrant shall entitle the subscriber to subscribe for and purchase one additional Share at a price of $0.10 per Share from the date of issue up to and including August 31, 2012.

The proceeds obtained from the issuance of the Flow-Through Units, to a maximum of $301,000 shall be used for a diamond-drilling and down-hole geophysics exploration programme at Galahad's Regcourt Property near Val d'Or QC.

The Company reserves the right to raise more Hard Dollars and less Flow-Through Dollars.

The Company will pay a Finder's Fee payable in a combination of cash and the issuance of securities of the Issuer equal to 4% of the cash and such number of Regular Units equal to 6% of the proceeds in connection with proceeds received by the Corporation from the sale of either Regular or Flow-Through Units to subscribers.

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"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

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