Bear Lake Gold Ltd.

Bear Lake Gold Ltd.

August 11, 2011 12:35 ET

Bear Lake Gold Ltd. Announces Private Placement to Raise Up to $3,500,000

LONGUEUIL, QUÉBEC--(Marketwire - Aug. 11, 2011) -


Bear Lake Gold Ltd. (the "Company" or "Bear Lake") (TSX VENTURE:BLG) announces plans to complete a non-brokered private placement of its securities comprised of Units and Flow-through Units priced at $0.15 per Unit or Flow-through Unit, to raise up to $3.5 million (the "Financing").

Each Unit will consist of one common share of Bear Lake and one whole common share purchase warrant (a "Warrant"), with each Warrant exercisable to acquire one common share at $0.20 for a period of 24 months from the closing date of the Financing. Each Flow-through Unit will consist of one common share of Bear Lake issued on a flow through basis (a "FT Share") and one-half of one Warrant. The Warrants will be subject to a right of accelerated expiry at the Company's option where the closing price of its common shares on the TSX Venture ("TSXV") has exceeded $0.50 for twenty consecutive trading days at any time after six months from closing of the Financing. Approximately 18% of the Financing is being subscribed for by insiders of Bear Lake.

The Company intends to use the gross proceeds of the sale of FT Shares for exploration on its Larder Lake project. The Company plans to use the net proceeds from the balance of the Financing for exploration and general corporate purposes.

Closing of the Financing is subject to certain conditions, including without limitation the receipt of all necessary corporate and regulatory approvals, including that of the TSXV. Closing of the Financing is expected to take place on or about August 23, 2011.

The Company may pay finder's fees to qualified finders in connection with the Financing, in accordance with applicable securities laws and the policies of the TSXV.

All securities issued in conjunction with the Financing will be subject to a four-month hold period under applicable securities laws.

Forward-Looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the Company's plans to complete the private placement on the terms announced and the use of proceeds. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

About Bear Lake Gold

Bear Lake Gold is engaged in the exploration of gold projects located in the Cadillac-Larder Lake Break mining district of north-eastern Ontario. Additional information about the Company is available on its website at and on SEDAR at

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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