Desert Sun Mining Corp.

Desert Sun Mining Corp.

March 22, 2005 08:23 ET

Desert Sun Completes $25 Million Bought Deal


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM
AMEX SYMBOL: DEZ

MARCH 22, 2005 - 08:23 ET

Desert Sun Completes $25 Million Bought Deal

TORONTO, ONTARIO--(CCNMatthews - March 22, 2005) - DESERT SUN MINING
CORP. (TSX:DSM)(AMEX:DEZ) has completed its previously announced bought
deal financing pursuant to which, as a result of the underwriters
exercising their over-allotment option in full, it raised $25 million
through the issuance of 10,729,614 units at a price of $2.33 per unit.
Each unit consists of one common share and one-quarter of one common
share purchase warrant of Desert Sun. Each whole warrant will be
exercisable at a price of $2.50 until November 20, 2008. The warrants
will trade on the Toronto Stock Exchange under the symbol "DSM.WT". The
underwriting syndicate for the offering was led by Sprott Securities
Inc. and included CIBC World Markets Inc., Salman Partners Inc.,
Canaccord Capital Corporation, First Associates Investments Inc.,
Haywood Securities Inc. and Pacific International Securities Inc.
Proceeds from the offering will be used by the Corporation as to US$10
million to expand its exploration program in Morro de Vento, Jacobina
mine, Pindabacu and Canavieras, as to US$5 million to finance
pre-feasibility and other development work at Morro de Vento and
Canavieras and the balance for working capital purposes.

Desert Sun Mining is a Canadian gold exploration and development company
listed on the Toronto Stock Exchange and the American Stock Exchange
with 100% ownership of the Jacobina Mine and the 155 km long Bahia Gold
Belt in the state of Bahia, in northeastern Brazil. For additional
information, please see Desert Sun's website at www.desertsunmining.com.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Desert Sun Mining Corp.
    Naomi Nemeth
    (416) 861-5901 or 1 (866) 477-0077
    www.desertsunmining.com