Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

May 31, 2006 13:58 ET

Linear Gold Update on the Reorganization and Anticipated Distribution of Linear Metals Corporation as a Dividend-in Kind to Linear Gold Shareholders

HALIFAX, NOVA SCOTIA--(CCNMatthews - May 31, 2006) - Linear Gold Corp. (TSX:LRR) reports that the planned reorganization involving the shareholder distribution and listing of the shares of Linear Gold's 100% owned subsidiary, Linear Metals Corporation ("Linear Metals"), on the TSX Venture Exchange is proceeding well and is expected to be completed during the month of June 2006. The reorganization, which is expected to be completed in substantially the same form as announced on April 24, 2006, has encountered some minor delays in receiving the necessary regulatory approvals and accordingly the initially anticipated record date of May 30, 2006 was not met. The actual record date will be established following receipt of all required regulatory approvals and will be announced in a Linear Gold press release issued immediately after the record date has been established.

Linear Metals Strategy

Linear Metals plans to explore and advance its initial portfolio of properties while aggressively pursuing non-gold assets with an initial focus on Mexico. Linear Metals will pursue acquisitions that are not in competition with Linear Gold.

Wade K. Dawe, President

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

Contact Information

  • Linear Gold Corp.
    Brian MacEachen
    Chief Financial Officer
    (902) 422-1421
    or
    Linear Gold Corp.
    Terry Christopher
    Manager of Investor Relations
    (902) 422-1421
    www.lineargoldcorp.com
    or
    Fuller Fletcher & Associates Ltd
    Nick Fuller or Samantha Fletcher
    European Investor Relations
    +44 207 256 5204
    +44 207 256 5678 (FAX)