Lero Gold Corporation
TSX VENTURE : LER

Lero Gold Corporation

November 19, 2007 10:08 ET

Lero Gold Corp. Private Placement to Raise C$2,500,000

LONDON, UNITED KINGDOM--(Marketwire - Nov. 19, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Lero Gold Corp. ("Lero", or the "Company") (TSX VENTURE:LER) the base and precious metal exploration company, announces that it has entered into an engagement letter with Canaccord Adams Limited ("Canaccord") as selling agent for a private placement to raise C$2,500,000.

10,000,000 common shares at a price of C$0.25 per share will be sold to qualified investors under applicable regulations (the "Private Placement"). A fee equal to 5 per cent of the gross proceeds raised will be paid to Canaccord at closing.

Closing is expected to occur on or around December 11, 2007. Lero intends to use the proceeds of the Private Placement for general corporate purposes.

In addition to the Private Placement, the Company has been advised that Oriel Resources plc ("Oriel"), an existing shareholder of the Company holding 30,000,000 common shares (approximately 49.35 per cent of the current issued share capital of the Company), is proposing to sell 100 per cent of its interest in the Company. 12,000,000 of these common shares are freely tradable, while 18,000,000 are still held in escrow and will be released in four blocks in January 2008, July 2008, January 2009 and July 2009. Freely tradable and escrowed shares will be pro-rated among the purchasers.

Upon completion of the sale of shares by Oriel and the Private Placement, to the Company's knowledge, no shareholder together with any of its individual affiliates and associates, will own, directly or indirectly, or exercise control over 10 per cent or more of the issued and outstanding common shares in the capital of the Company, including common shares issuable pursuant to the terms of any convertible security beneficially owned, directly and indirectly, or controlled by the new shareholders.

The Company is also continuing to pursue the sale of the Kyrgyzstan-based Tokhtazan gold deposit.

President and CEO of Lero, Nick Clarke said:

"This is a very positive move for Lero and its shareholders. With no single controlling investor, the Company's directors are free to actively pursue its advanced exploration activities within the Kazakhstan and Kyrgyzstan-based licences, while the C$2.5 million placement provides sufficient cash resources to do so."

The completion of the sale by Oriel of its escrowed shares of the Company and the Private Placement are subject to approval by the TSX Venture Exchange. It is intended that both transactions will complete concurrently.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Notes to Editors:

Lero Gold Corp. (TSX VENTURE:LER) is a base and precious metal exploration company led by a senior management team with extensive expertise in mineral exploration and advanced project management.

In July, 2006 Oriel Resources Plc completed its previously announced transfer and sale of its gold related assets into Lero Gold Corporation ('Lero') (formerly ELE Capital Corporation - 'ELE'). Lero resumed trading on TSX Venture Exchange (TSX-V) on Thursday July 27, 2006 under the trading symbol "LER".

Lero Gold is currently seeking and evaluating advanced exploration stage gold and base metal projects in Kazakhstan and Kyrgyzstan. The Company is currently exploring two advanced staged gold deposits in the Tien Shan gold belt in the Kyrgyz Republic and one in Kazakhstan. For avoidance of confusion;

- The Taldybulak-Talas copper gold porphyry is a separate deposit from the Taldybulak Levoberezhny gold deposit previously owned by Central Asia Gold Limited.

The Company is aggressively pursuing and evaluating high quality properties which it intends to add to its portfolios in Kyrgyzstan and Kazakhstan. The Company is well-funded and strategically positioned to fully participate in the current favourable investment climate through solid technical advances, unique in-country expertise, and timely business initiatives. With senior management and excellent technical expertise, Lero Gold intends to aggressively explore and develop a portfolio of new projects and targets.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lero Gold Corporation
    Nick Clarke
    President & CEO
    +44 (0) 20 7514 0590
    or
    Lero Gold Corporation
    Darryl Yea
    Non-Executive Chairman
    (604) 699-2458
    or
    Lero Gold Corporation
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    Email: info@lerogold.com
    Website: www.lerogold.com
    or
    Canaccord Adams Limited
    Robin Birchall / Ryan Gaffney
    +44 (0) 20 7050 6500
    or
    Bankside Consultants
    Michael Padley / Michael Spriggs
    +44 (0) 20 7367 8888