Bishop Gold Inc.

Bishop Gold Inc.

September 14, 2005 11:09 ET

Bishop Announces Settlement and Joint Venture Proposal with Guardsmen Resources and Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 14, 2005) - Bishop Gold Inc. ("Bishop") (TSX VENTURE:BSG), listed on the TSX Venture Exchange Inc. (the "Exchange") under the trading symbol "BSG", announces that it has entered into a joint venture and settlement proposal (the "JV Proposal") for the settlement of outstanding disputes relating to the Mineral Claim Purchase and Sale Agreement ("Toodoggone Agreement") between Guardsmen Resources Inc. ("Guardsmen") and Bishop dated July 22, 2003 and for development of the Al/Bonanza property located in the Toodoggone district of North Central British Columbia. Pursuant to the key terms of the JV Proposal, Bishop has agreed: (i) to pay to Guardsmen the aggregate sum of $275,008.66 representing amounts outstanding to Guardsmen pursuant to the terms of the Toodoggone Agreement and exploration activities undertaken by Guardsmen on Bishop's behalf; (ii) to place $350,000 in an escrow account for the payment of future Guardsmen invoices for services relating to the fall exploration program of Bishop; (iii) until the expiration of the Toodoggone Agreement, not to transfer any of the claims on Bishop's Lawyers Property located in the Toodoggone district of North Central British Columbia without the prior approval of Guardsmen; and (iv) to enter into a joint venture agreement with Guardsmen whereby Guardsmen and Bishop will develop the Al/Bonanza property on an 85%/15% ownership basis, respectively (the "Al/Bonanza Joint Venture"). The required work commitment of Bishop for the Lawyers mineral claims for the period July 23, 2005 to July 22, 2006 pursuant to the Toodoggone Agreement has been reduced from $1,000,000 to $500,000, with the $500,000 reduction added to the last year of the Toodoggone Agreement (July 23, 2007 to July 22, 2008.

Pursuant to the proposed terms of the Al/Bonanza Joint Venture, Guardsmen will also be required to expend a minimum of $400,000 in exploration expenditures during a 60 month period and will be the exclusive operator of the Al/Bonanza property. Guardsmen will be able to purchase Bishop's 15% interest in the Al/Bonanza property for the term of the Al/Bonanza Joint Venture for a purchase price of $400,000.

Bishop is also pleased to announce a private placement offering for maximum gross proceeds of $1,200,000 through the issuance of a total of 24,000,000 units ("Units") of the Corporation at a purchase price of $0.05 per unit. Each Unit will consist of one common share and one common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to acquire one common share of the Company for a period of two years at an exercise price of $0.10 per share.

Proceeds from this private placement will be used to fund the current work program on the Lawyers group of claims in the Toodoggone region of British Columbia, and the remaining funds will be used for general working capital.

This placement and JV Proposal are subject to acceptance by regulatory authorities and the TSX Venture Exchange. The shares issued under the private placement will be subject to a four-month hold period. A finder's fee may be paid in connection with the private placement.


Terry Fields, President

The company seeks safe harbor on forward-looking statements.

The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents of this press release.

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