Auriga Gold Corp.
TSX VENTURE : AIA

Auriga Gold Corp.

June 21, 2011 09:27 ET

Auriga Gold Announces Expiry of Incentive Program for Early Exercise of Warrants and Raises Net Proceeds of $1,486,497

TORONTO, ONTARIO--(Marketwire - June 21, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") is pleased to announce that its early exercise warrant incentive program (the "Warrant Program") previously disclosed in its press releases dated June 14, 2011 and May 6, 2011 has expired. As previously announced the Warrant Program was designed to encourage the early exercise of up to 14,869,747 of its outstanding unlisted warrants that are exercisable at a price of $0.40 per share (the "Unit Warrants") and up to 1,271,196 of its outstanding unlisted warrants that are exercisable at a price of $0.45 per share (the "FTUnit Warrants"). All of the Unit Warrants and the FT Unit Warrants (collectively, the "Warrants") are exercisable to acquire one common share of the Company and expire between October 6 and October 12 of 2012. An aggregate of 4,206,316 Unit Warrants and 35,714 FT Unit Warrants have been exercised pursuant to the Warrant Program, leaving outstanding, 10,663,431 Unit Warrants and 1,235,482 FT Unit Warrants. The net proceeds from the exercise of warrants under the Warrant Program is $1,486,497. In connection with structuring the Warrant Program, the Corporation has agreed to pay to Jones Gable & Company Limited, subject to requisite regulatory approval, including without limitation, the TSX Venture Exchange, an advisory fee of 120,000 warrants at a strike price of $0.50 per common share for a term of 24 months, The common shares into which such warrants may be exercised will have a hold period of four months plus one day.

About Auriga Gold

Auriga Gold is a Canadian mine development and exploration company with an experienced team focused on expanding gold resources and developing the combined Puffy Lake and Nokomis properties (the "Maverick Gold Project"). The Company plans to upgrade and expand the historic resources at the Maverick Gold Project and bring the Puffy Lake Mine back into production.

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be achieved nor that the proposed operations will be economically viable. This press release is not and is not to be construed as an offer to buy or sell securities in the United States.

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.

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