Knight Resources Ltd.
TSX VENTURE : KNP
FRANKFURT : KRL

Knight Resources Ltd.

December 07, 2009 17:06 ET

Knight Resources Ltd.: Private Placement Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2009) – Further to the Company's news release dated November 11, 2009, Mr. David Patterson, Chairman of Knight Resources Ltd. (TSX VENTURE:KNP)(FRANKFURT:KRL), reports that the Company has increased its non-brokered private placement from $2,750,000 to $3,279,200.

The Company will raise these funds by issuing 40,990,000 flow-through units ("FT Unit") at a price of $0.08 per FT Unit. Each FT Unit consists of one flow-through common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one non-flow-through common share at a price of $0.12 per share for a period of 12 months. However, in the event the closing price of the Company's common shares on the Exchange is at least $0.25 for ten consecutive trading days (at any time following four months from the date of Closing) the Company may reduce the remaining exercise period of the Warrants to not less than 30 days from the date of providing notice of such reduced exercise period.

The Company closed the first tranche of the private placement on November 19, 2009, raising gross proceeds of $2,576,000 by issuing 32,200,000 FT Units.

The Company anticipates closing the balance of the private placement later this week. The funds raised by way of the financing will be used for exploration of the West Raglan Project, located in northern Québec.

ON BEHALF OF THE BOARD OF
KNIGHT RESOURCES LTD.

"David Patterson"
Chairman

Neither the 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 news release.

Contact Information