Nevada Pacific Gold Ltd.
TSX VENTURE : NPG

Nevada Pacific Gold Ltd.

May 12, 2006 15:20 ET

Nevada Pacific Closed Second Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2006) - Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) is pleased to announce that the second and final tranche of the $5.0 million private placement announced December 9, 2005 with Robert McEwen has closed on May 11, 2006. The second tranche consists of 5,578,787 Units of the 12,500,000 Unit total at a price of $0.40 per Unit. Each Unit is comprised of one common share and one share purchase warrant, each warrant exercisable to acquire one common share at an exercise price of $0.50 per share for a term of 2 years.

As a result completing the second tranche of the private placement, Mr. McEwen now holds 18.12% of the outstanding shares of the Company and, in the event of exercise of all of the warrants, Mr. McEwen will hold 30.69% of the outstanding common shares of the Company.

The Common Shares and Warrants of this second tranche are subject to a four-month hold period expiring September 12, 2006.

The proceeds of the placement will be used to advance exploration on the Company's gold and silver exploration projects in Nevada and for general working capital purposes.

Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns an exploration property portfolio covering approximately 890 square miles of mineral rights in Mexico including the Magistral Gold Mine and an exploration property portfolio covering approximately 85 square miles of mineral rights in the State of Nevada. A description of these projects, including maps and photographs can be viewed on the Company's website at www.nevadapacificgold.com.

ON BEHALF OF NEVADA PACIFIC GOLD LTD.

David Hottman, Chairman, CEO and President

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

Contact Information