High Desert Gold Corporation

High Desert Gold Corporation

December 17, 2009 13:11 ET

High Desert Gold Corporation Completes $595,000 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2009) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG) is pleased to report that it has closed the first tranche of a private placement financing for gross proceeds of $595,000 (the "Financing") through the issuance of 3,718,750 common shares of the Company (each a "Common Share") at a price of $0.16 per Common Share. The Common Shares issued today are subject to a statutory hold period expiring April 18, 2010. All amounts are in Cdn$.

The issuance of 3,718,750 Common Shares today is part of a larger offering by the Company of up to 7,812,500 Common Shares. Additional closings may occur up to January 30, 2010.

In connection with its work as selling agent for the Company on the Financing, the Company paid $47,600 in cash to IBK Capital Corp. ("IBK") and issued non-transferable broker warrants entitling IBK to subscribe for 371,875 Common Shares at a price of $0.16 per Common Share for a period of 24 months (until December 17, 2011).

The Company plans to use the net proceeds from the Financing for further exploration at Canasta Dorada and Gold Springs and for general corporate purposes.

Ralph Fitch, President and CEO of the Company, stated, "This infusion of cash allows us to reinvigorate the Company after the hostile bid for the Company that was resolved earlier this year. The Company has excellent gold properties which it now intends to drill. Both Canasta Dorada and Gold Springs have the immediate potential to demonstrate gold resource ounces through drilling."

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States of America (the "United States") or to or for the benefit of U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act) except in transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

The Company has recently signed a letter of intent to acquire a 60% interest in the Gold Springs gold property on the Nevada-Utah border. The Company will focus its resources on this property where it believes a modest drilling program can achieve substantial results.

The Company also plans to drill Canasta Dorada with or without a partner. Past drilling at Canasta Dorada has intersected plus one gram per tonne gold mineralization and management believes a large exploration program is justified.

At Artillery Peak, drill permits have been obtained and exploration will move forward if further funds are available.

HDG is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The two properties of focus held by the Company are the Canasta Dorada gold property in Sonora, Mexico, and the Gold Springs gold property on the Nevada-Utah border.

Certain statements in this press release constitute "forward-looking statements". These forward-looking statements include, but are not limited to, statements regarding the possibility of additional closings. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the effect of capital market conditions and other factors on capital availability and the ability to complete additional closings up to the maximum offering if at all; possible variations in mineral resources, grade or recovery rates, commodity prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; political, regulatory, environmental and other risks in the mining industry and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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