Auriga Gold Corp.

Auriga Gold Corp.

February 08, 2011 10:58 ET

Auriga Gold Withdraws Preliminary Prospectus; Shares and Warrants Have Been Distributed

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2011) - The Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company) notifies its shareholders that the company will not be filing a prospectus in connection with the $5,350,762 private placement of subscription receipts which closed in various tranches in October 2010, as announced in Auriga Gold's press releases of November 3, 2010 and December 2, 2010. An aggregate of 19,153,347 common shares and 16,140,943 warrants issuable upon conversion of the subscription receipts (collectively, the "Securities") have been distributed. 

The preliminary short form prospectus was filed with the regulatory authorities in the Provinces of British Columbia, Manitoba, Ontario and Newfoundland and Labrador on November 4, 2010, subject to regulatory approval, to qualify the Securities in these jurisdictions. The Company has determined not to proceed with the qualification of the Securities and consequently, the Securities are being issued subject to a four-month hold from the date of issuance of the subscription receipts. The hold period on the Securities will expire within the next week.

As of February 6, 2011, the Company has completed 10 drill holes for a total of 2,157 meters in a program to confirm historical resources at the Maverick Gold Property. Initial assay results are anticipated by the end of February, 2011.

About Auriga Gold

Auriga Gold Corp. is a Canadian exploration and development company with an experienced technical 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 evaluate bringing the Puffy Lake Mine back into production. The Puffy Lake Mine includes a 1,000 tpd flotation mill, a developed underground ramp to 130 metres depth, is road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba and includes historical resources (pre-NI 43-101) of 540,000 ounces of gold at Puffy Lake and 68,000 ounces of gold at Nokomis. The Flin Flon Greenstone Belt hosts a number of significant base and precious deposits.

Richard H. Sutcliffe, a director and a registered Professional Geologist, is designated as the Qualified Person under National Instrument 43-101 (NI 43-101) and has reviewed and approved the contents of this news release. NI 43-101: A qualified person has not done sufficient work to verify the historical resource estimates at Puffy Lake and Nokomis. These historic estimates predate NI 43-101, are not compliant with current definitions, have not been verified by the company and consequently should not be relied on by investors. The historical estimates are provided as an indication of historically reported estimates.

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.

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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