Cusac Gold Mines Ltd.
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

March 24, 2006 09:00 ET

Cusac Outlines Terms of $6 Million Production/Exploration Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 2006) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF) (the "Company"), reports that further to the Company's March 3, 2006 news release whereby the Company engaged M Partners Inc. of Toronto (the "Agent") to assist the Company in raising up to $6 million, the Company and the Agent have agreed on pricing and other terms for the private placement (all figures in Canadian dollars). The issue will consist of a combination of flow-through units, common share units and convertible debentures, and will be subject to regulatory and shareholder approval. The proceeds of the offering will be utilized to resume gold production from the Company's 100% owned high-grade Table Mountain Gold Mine in Northern British Columbia ($3,750,000), to conduct further exploration work on the Company's 100% owned Taurus II open-pit target near the Table Mountain Gold Mine ($1,500,000), and to pay the expenses of the offering and for general working capital ($750,000).

The $3.75 million required to resume gold production at Table Mountain is to be raised through the issuance of 1,000 Convertible Debentures (the "Debentures") priced at $3,750 per Debenture, maturing in 18 months. The Debentures bear interest at a rate of 11% per annum, paid in cash semi-annually. The Debentures are convertible into common shares at a price of $0.35 during the first six months following issuance, $0.40 after six months but within one year of issuance, and $0.45 after one year but within 18 months following issuance. The Debentures will automatically convert into common shares at $0.45 in the event that the Company's shares close at $0.55 or higher on the Toronto Stock Exchange for a period of 10 consecutive trading days following one year of issuance.

The $1.5 million earmarked for exploration of the Taurus II project is to be raised through the issuance of 5,555,556 flow-through units at $0.27 per unit whereby each unit consists of one common flow-through share and one-half of one warrant to purchase a non-flow-through common share at $0.35 for a period of 12 months.

The $750,000 in working capital funds are to be raised through the issuance of 3,125,000 common share units at $0.24 per unit whereby each unit will consist of one common share and one full warrant to purchase an additional common share at $0.35 for a period of 12 months.

M Partners is a member of the IDA, a participating member of the Toronto Stock Exchange, the TSX Venture Exchange and the Canadian Investor Protection Fund (CIPF).


David H. Brett, President & CEO

Forward-Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "plans", will", "estimate", "continue", "anticipates", "intends", "expects" and similar uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Cusac's exploration results, lack of revenues, additional capital requirements, risks associated with the exploration activity. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

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

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