Choice Gold Corp.
CNSX : CHF
MUN : OCG

Choice Gold Corp.

December 13, 2011 17:41 ET

Choice Gold Corp. Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2011) -

NOT FOR DISSEMINATION IN THE US OR TO US WIRE SERVICES.

Choice Gold Corp. (CNSX:CHF)(MUN:OCG) ("Choice Gold" or the "Company") is pleased to announce that it has closed the non-brokered private placement announced on November 17, 2011. A total of 2,500,000 units (the "Units") have been issued at a price of $0.30 per Unit for gross proceeds of CDN $750,000.

Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase, on exercise, one common share (a "Warrant Share") for a period of two years as follows: if exercised in the first year after issuance, each Warrant will be exercisable at a price of $0.50 per Warrant Share; if exercised in the second year after issuance, each Warrant will be exercisable at a price of $0.80 per Warrant Share. All of the securities are subject to a 4 month hold period in accordance with applicable securities regulations.

Net proceeds from the private placement will be used in furtherance of the Company's Sugarloaf Peak Gold Project and for general working capital purposes.

About Choice Gold Corp.:

Choice Gold Corp. was created to acquire and advance select, high-potential mineral projects and thereby unlock shareholder value. With this goal in mind, the company has entered an option agreement with Riverside Resources Ltd. (TSX VENTURE:RRI) to acquire a 100% interest in the Sugarloaf Peak Gold Project just west of Quartzsite, Arizona. Sugarloaf Peak covers over 24 km² and was the subject of intermittent drilling and small-scale mining from the 1950s through to the 1990s. The project is the subject of an historical, non-National Instrument 43-101 compliant mineral resource and Choice Gold has a mandate to prove its economic viability. For more information about Choice Gold please visit our website at www.choicegoldcorp.com.

This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

These securities have not and will not be registered under United States federal or state securities laws and may not be offered or sold in the United States or to a U.S. Person unless so registered, or an exemption from registration is relied upon. This news release does not constitute an offer of securities for sale in the United States.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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