BrazAlta Resources Corp.

BrazAlta Resources Corp.

June 02, 2005 16:51 ET

BrazAlta Resources Corp. Announces First Closing of Brokered Private Placement

CALGARY, ALBERTA--(CCNMatthews - June 2, 2005) - BrazAlta Resources Corp. (TSX VENTURE:BRX) ("BrazAlta") is pleased to report it has closed a first tranche of its previously announced brokered private placement with Octagon Capital Corporation. An aggregate of 2,584,500 Units at a price of $0.35 per Unit were issued for gross proceeds of $904,575. Each Unit is comprised of one common share ("Common Share") and one half of one common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to acquire one Common Share at a price $0.50 per Common Share for a period of 12 months. Octagon Capital Corporation received consideration for services provided.

After giving effect to the private placement, BrazAlta now has 13,328,753 Common Shares issued and outstanding. The securities issued in connection with the private placement are subject to a four month statutory resale restriction.

The net proceeds of the private placement are expected to be applied to seismic and drilling costs at the Corporation's South Larne License in Northern Ireland, as well as initial lease purchases in Brazil.

BrazAlta has also approved the change of its financial year end from May 31, to June 30 to match the reporting cycles of most public companies. In addition, BrazAlta has approved the change of auditor to Deloitte & Touche LLP.

BrazAlta is a publicly traded Canadian based international oil & gas and resource company with operations in both Canada and Northern Ireland.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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