EM Resources Inc.

July 31, 2006 19:47 ET

EM Resources Inc.: Press Release

TORONTO, ONTARIO--(CCNMatthews - July 31, 2006) - EM Resources Inc. announced on July 28, 2006, that it has completed the sale of 1,200,000 common shares at $0.15 per share for gross proceeds of $180,000 pursuant to the final prospectus of EM Resources Inc. dated June 28, 2006. As announced at that time, a portion of the offering was sold to a director of EM Resources, Dennis H. Peterson. Mr. Peterson acquired a total of 715,000 shares at $0.15 per share for a total purchase price of $107,250. Mr. Peterson did not exercise control or direction over any securities of EM Resources prior to the offering. As a result of the offering, Mr. Peterson owns 715,000 shares representing approximately 37.6% of the 1,900,000 issued and outstanding common shares.

This portion of the private placement sold to Dennis H. Peterson was a related party transaction under Ontario Securities Commission Rule 61-501 - Insider Bids, Issuer Bids, Business Combinations and Related Party Transactions (the "OSC Rule") as Mr. Peterson is a director of EM Resources. The private placement was approved by all of the non-interested directors of the Corporation, Eduard H. Ludwig and Ian A. Shaw. Dennis H. Peterson abstained from approval of this matter. The private placement completed by Dennis H. Peterson was exempt from the related party valuation and minority securityholder approval requirements of the OSC Rule on the basis that no securities of the Corporation are listed or quoted on any specified markets, such markets specified by the OSC Rule to be the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock Market, or a stock exchange outside of Canada and the United States.

EM Resources has commenced its exploration program on the Muskasenda Project near Timmins, Ontario, as described in its prospectus dated June 28, 2006, which is filed on www.sedar.com. Further announcements will be made when results are available.

WARNING: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • EM Resources Inc.
    Dennis H. Peterson
    Director
    (416) 777-6772
    (416) 352-5693 (FAX)
    dhp@petelaw.com