Exall Resources Limited
TSX : EXL
OTC Bulletin Board : EXALF

Exall Resources Limited

March 30, 2006 15:55 ET

Exall Completes $10,400,000 Private Placement Financings

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) - Exall Resources Limited ("Exall")(TSX:EXL)(OTCBB:EXALF) announced today that it has closed the previously announced $10,400,000 financings.

Proceeds of $8,400,000 were raised by way of a brokered private placement through Dundee Securities Corporation and Dominick & Dominick Securities Inc. (the "Agents"). The brokered private placement consisted of 1,500,000 "flow-through" common shares of Exall (the "Flow-Through Shares") priced at $2.10 per Flow-Through Share and 3,000,000 units (that are not flow-through) of Exall (the "Units") priced at $1.75 per Unit and consisting of one common share of Exall and one-half of one share purchase warrant. Each whole share purchase warrant may be exercised to acquire one common share of Exall at a price of $2.25 for a period of 12 months, provided that if after four months and one day following the closing of the private placement, the closing price of the common shares of Exall on the principal market in Canada on which such shares trade is equal to or exceeds $3.00 for 20 consecutive trading days, then Exall may accelerate the expiry date of the share purchase warrants by giving notice to the holders thereof and in such case the share purchase warrants will expire on the 30th day after the date on which such notice is given by Exall. The Agents received a cash commission of 6% of the gross proceeds raised from the brokered private placement.

In addition, Exall closed the previously announced $2,000,000 non-brokered private placement of Units, the terms of which are consistent with that of the Units sold under the brokered private placement described above.

The securities issued under the financings are subject to a four month resale restriction in Canada.

Following the closing of the financings, Exall currently has cash of $11.7 million and marketable securities with a current market value of $11.1 million.

Exall intends to use the gross proceeds from the sale of the Flow-Through Shares for the exploration program at Exall's Gold Eagle Project and the proceeds from the sale of the Units for working capital and general corporate purposes.

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Exall's expectations and projections.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL; in the United States, Exall trades as EXALF on the US OTC Market (S.E.C. registration #82-3535). Exall is active in the business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore the United Kingdom. Exall also owns 3,310,000 common shares of Southern Star Resources Inc., Exall's joint venture partner in the Gold Eagle Project.

There are 77,660,530 million common shares issued and outstanding of Exall.

Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949
    (416) 368-5146 (FAX)
    www.exall.com