Auriga Gold Corp.
TSX VENTURE : AIA

Auriga Gold Corp.

July 12, 2011 12:39 ET

Auriga Gold Completes First Tranche of $3.0 Million Private Placement Financing

TORONTO, ONTARIO--(Marketwire - July 12, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") is pleased to announce that it has completed the first tranche of a non-brokered private placement offering of 1,400,000 flow-through units ("FT Units") at $0.50 per FT Unit for aggregate gross proceeds of approximately $700,000. Each FT Unit consists of one flow-through common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one additional common share at an exercise price of $0.75 per share for 18 months.

The securities issued pursuant to the first tranche of the private placement are subject to a hold period of four months. The gross proceeds from the sale of the FT Units will be used to fund exploration and development at the Company's Maverick Gold Project in Manitoba, Canada. The private placement remains subject to the final approval of the TSX Venture Exchange.

In connection with the first tranche of the financing, Auriga paid finders' fees of $49,000 to various finders, as well as issuing an aggregate of 56,000 compensation options ("Compensation Options") to various finders with each Compensation Option entitling the holder to acquire one additional common share at an exercise price of $0.50 per share for 24 months.

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.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to Auriga's financings, use of proceeds and opportunities in the precious metals space. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Auriga to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Auriga's management discussion and analysis for the year ended December 31, 2010, available on www.sedar.com. Although Auriga has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Auriga does not undertake to update any forward-looking information, except in accordance with applicable securities laws. 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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