Spider Resources Inc.

Spider Resources Inc.

January 05, 2005 12:47 ET

Spider Resources Inc.: Private Placement Of Flow-Through Shares


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SPIDER RESOURCES INC.

TSX VENTURE SYMBOL: SPQ

JANUARY 5, 2005 - 12:47 ET

Spider Resources Inc.: Private Placement Of
Flow-Through Shares

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2005) - Spider Resources Inc.
(TSX VENTURE:SPQ) ("Spider") is pleased to announce the closing of a
flow-through private placement for proceeds of over $1,500,000 on
December 30, 2004. Pursuant to this offering, Spider issued 8,917,918
units at the price of $0.17 per unit. Each unit consists of one
flow-through common share of Spider and one common share purchase
warrant, each of which entitles the purchaser to purchase one common
share that is not a "flow-through" share of Spider at an exercise price
of $0.19 at any time on or before 5:00 p.m. (Toronto time) on December
30, 2006. The flow-through common shares, the common share purchase
warrants and the underlying common shares issued in this offering have a
hold period of four months expiring on May 1, 2005.

The transaction was concluded on both a brokered and non-brokered basis.
The MineralFields Group purchased an aggregate of 7,647,705 units
through a brokered arrangement with Limited Market Dealer Inc. (the
"Broker"). Pursuant to this arrangement the Broker was paid a 4% cash
finder's fee totalling $52,000 and a 5% due diligence fee totalling
$69,500 (including GST). Additionally, the Broker received 764,705
broker's warrants, each of which entitles the Broker to purchase one
common share that is not a "flow-through" share of Spider at an exercise
price of $0.19 at any time on or before 5:00 p.m. on December 30, 2006.
The remaining 1,270,213 units were sold on a non-brokered basis. The
broker's warrants and underlying common shares issued in this offering
have a hold period of four months expiring on May 1, 2005.

The proceeds of this financing will be used to further advance the
various exploration programs held by the company and its joint venture
partner KWG Resources Inc. The initial field crew has already arrived at
the McFauld's Lake base camp, and are currently preparing for the
arrival of the Geotech airborne geophysical "VTEM" survey crew scheduled
for January 9th. The Heath & Sherwood drill crew are scheduled to arrive
by mid January, to continue the testing of the McFauld's #3 VMS
occurrence where the joint venture intersected 18.8 meters that averaged
8.02% Cu in hole McF-04-57 as announced November 8, 2004. A second drill
crew is scheduled for arrival before month end to continue the drill
testing of the MacFadyen diamond project, located adjacent to De Beers,
Victor diamond project on the Attawapiskat River. With these funds, and
the $1.0 million financing recently completed by joint venture partner
KWG, the project is well financed for the next phase of exploration.

On Behalf of the Board of Directors

Bryan Wilson,

President and CEO

For more information on Spider Resources Inc. and its other exploration
projects, Please visit our website www.spiderresources.com

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Spider Resources Inc.
    Jim Voisin
    Communication Manager
    (519) 699-5352
    or
    Spider Resources Inc.
    Neil Novak
    Chief Operating Officer, VP Exploration
    (416) 815-8666
    www.spiderresources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility of the adequacy or accuracy of this release.