Reunion Gold Corporation

Reunion Gold Corporation

August 18, 2009 10:04 ET

Reunion Gold Corporation Arranges US$250,000 Loan

LONGUEUIL, QUEBEC--(Marketwire - Aug. 18, 2009) - Reunion Gold Corporation (TSX VENTURE:RGD) (the "Company") announces that it has arranged a loan of US$250,000 from a company controlled by two directors of the Company. The funds will be used for interim working capital while the Company seeks longer-term financing for its activities.

The loan will be unsecured and will accrue interest at 15% per annum until the time of repayment. The loan may be repaid by the Company without penalty at any time, and will be subject to repayment on demand by the lender at any time after March 1, 2010. At the time of repayment, the lender will have the option to elect for repayment of all principal and accrued interest due under the loan in either cash or in common shares of the Company. The loan has been approved by the independent directors of the Company, with the interested directors abstaining from voting, and remains subject to TSX Venture Exchange approval.

Due to limited financial resources, exploration activities at the Company's projects were halted in October 2008 and these projects have since been on care and maintenance.

Forward-looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the Company's plans to obtain longer-term financing for its activities. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website.

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.

Contact Information