WSR Gold Inc.

WSR Gold Inc.

April 25, 2008 09:28 ET

WSR Gold Inc. Announces Closing of $9 Million Guaranteed Private Placement Financing

TORONTO, ONTARIO--(Marketwire - April 25, 2008) -


WSR Gold Inc. (TSX VENTURE:WSR) ("WSR") is pleased to announce that it has closed its previously announced brokered private placement of units ("Units") and flow-through units ("FT Units") to raise gross proceeds of $9,000,000. In connection with the financing, WSR issued an aggregate of 11,000,000 Units and 5,833,331 FT Units. Each Unit was issued at a price of $0.50 per Unit, and consisted of one common share of WSR and one-half of one common share purchase warrant (each whole such warrant, a "Warrant"). Each FT Unit was issued at a price of $0.60 per FT Unit, consisted of one "flow-through" common share of WSR and one-half of one Warrant. Each whole Warrant shall entitle the holder thereof to acquire one additional common share of WSR at an exercise price of $0.65 per share for a period of 24 months from the date of issuance thereof.

The offering was largely purchased by institutional investors, including Rosseau Asset Management, Pinetree Capital Ltd., Sprott Asset Management; and Northfield Capital Corp.

Primary Capital Inc. and PowerOne Capital Markets Limited acted as agents in connection with the offering, pursuant to which they received an aggregate cash commission of 6.5% of the gross proceeds raised in the offering, as well as an aggregate of 1,094,166 compensation warrants ("Compensation Warrants"). Each Compensation Warrant is exercisable to acquire one Unit at an exercise price of $0.50 for a period of two years following the date of issuance thereof.

All securities issued in connection with the private placement are subject to a statutory hold period expiring August 25, 2008. The private placement remains subject to the final approval of the TSX Venture Exchange.

WSR's current cash position is approximately $14 million. These funds are to be used to aggressively explore WSR's substantial holdings (see map below) in the Ring of Fire, James Bay Lowlands, Ontario, Canada.

About WSR

WSR is a Canadian based mineral exploration company with extensive property holdings strategically located on and around the nickel/copper "Ring of Fire" in northern Ontario near James Bay.

WSR can earn a 50% interest in the McFauld's Lake Property pursuant to an option agreement with Noront Resources Ltd. (TSX VENTURE:NOT) (see press release dated November 1, 2007). The area covers 15 claim blocks comprising approximately 4,400 hectares (9,600 acres) in the Ring of Fire, McFauld's Lake, Ontario, near Noront's prolific nickel, copper and platinum group metals discovery.

WSR has the right to acquire a 75% interest in the Big Mac property from MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) consisting of 51 claim blocks comprising approximately 27,660 acres (see press release dated February 15, 2008).

WSR has also entered into an agreement with Metalex Ventures Ltd. (TSX VENTURE:MTX) and Arctic Star Diamond Corp. where by WSR has the right to fund up to $20,000,000 in exploration expenditures on James Bay Lowlands Properties over a 4 year period to earn a maximum 50% interest in such properties, subject to the approval of the TSX Venture Exchange. The James Bay Lowlands Properties comprise approximately 214.4 square kilometers (52,980 acres) (see press release dated March 26, 2008).

The common shares of WSR trade on the TSX Venture Exchange under the symbol "WSR".

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of WSR, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

To view a map of "James Bay Lowlands Property Holdings", please visit the link below:

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

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