SOURCE: Calais Resources

July 08, 2005 08:30 ET

Calais Resources Completes USD $150,000 Private Placement

NEDERLAND, CO -- (MARKET WIRE) -- July 8, 2005 -- Calais Resources Inc. (OTC BB: CAAUF), herein the "Company," is pleased to announce the completion, on June 30, 2005, of a private placement of 750,000 common shares of the Company to a private individual at USD $.20 per share for proceeds to Calais of $150,000.

The Company has also approved an attached warrant agreement for an additional 750,000 shares at $.25 per share for a five-year period. The gross proceeds from the sale of the shares will be used by Calais to pay current accounts payable and to allow the company to continue work with its auditor KPMG. The proceeds have also allowed Calais to immediately employ the services of Brock and Company, CPAs in Boulder, Colorado, to provide a non-audit accounting review in conjunction with KPMG.

Calais also received and approved by a corporate resolution the terms for a "settlement agreement" with four 2004 investors. The "settlement agreement" provides for conversion of $515,000 plus accrued interest at 15 percent to common shares of Calais at $0.60 per share. Two of the parties have agreed to secure their investment of $166,000 as a mortgage loan at 15 percent interest. The parties have agreed to convert the interest portion of the loan to Calais common shares at $0.60 cents per share as of August 01, 2005.

The Company is diligently working on additional financing for the Company at this time. Calais is a gold mining company that owns or controls the historic Consolidated Caribou Mines District property at Caribou, Colorado, the historic Manhattan District property in Nye County, Nevada, and holds certain mining applications in Panama.

Safe Harbor

The future conduct of the company's business and its response to issues raised by third parties are dependent upon a number of factors, and there can be no assurance that the company will be able to conduct its operations as contemplated. Certain statements contained in this release using the terms "may," "expects to," "projects," "estimates," "plans," and other terms denoting future possibilities, are forward-looking statements in accordance with the Private Securities Litigation Reform Act of 1995. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability.

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