Bema Gold Corporation

Bema Gold Corporation

August 17, 2006 08:32 ET

Bema Enters "Bought Deal" Financing Agreement for CDN$115 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) -

This news release is not for dissemination in the United States or through United States newswire services.

Bema Gold Corporation (TSX:BGO)(NYSE:BGO)(AIM:BAU) is pleased to announce that it has entered into an agreement with a syndicate of investment dealers co-led by GMP Securities L.P., Genuity Capital Markets and BMO Nesbitt Burns Inc. and including Canaccord Capital Corporation, Orion Securities Inc., RBC Dominion Securities Inc., UBS Securities Canada Inc. and Haywood Securities Inc. (the "Underwriters"), which have agreed to purchase, on a bought deal basis, 18.4 million units of Bema at a purchase price of $6.25 per unit, for aggregate gross proceeds in the amount of $115 million. Each unit will consist of a common share of the Company and a one half of one share purchase warrant. Each whole warrant will entitle the holder to subscribe for a common share of Bema at a price of $10.00 for a period of five years from the Closing Date. Bema plans to use the net proceeds of this financing for further exploration and development of the Kupol Property in Russia and for general corporate purposes.

The offering is scheduled to close on or about September 7th, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

These securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.


"Clive T. Johnson"
Chairman, C.E.O., & President

Bema Gold Corporation trades on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). Symbol: BGO. Bema Gold also trades on the London Stock Exchange's Alternative Investment Market (AIM). Symbol: BAU.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

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