Exile Resources Inc.
TSX VENTURE : ERI

Exile Resources Inc.

June 08, 2006 13:07 ET

Exile Resources Closes Second Tranche of Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - June 8, 2006) -

Not for dissemination into the United States or through U.S. Newswire Services

Exile Resources Inc. (TSX VENTURE:ERI) is pleased to announce that it has closed the second tranche of its previously announced private placement led by Westwind Partners Inc. and MGI Securities Inc. (collectively, the "Agents"), to raise gross proceeds of approximately C$1,677,600. Exile Resources raised aggregate gross proceeds of C$8,268,622 in connection with the closing of both tranches.

Earlier today, Exile Resources issued 3,355,000 units (the "Units") at a price of C$0.50 per Unit in connection with the closing of the second tranche of the private placement. Each Unit consists of one common share and one-half of one common share purchase warrant exercisable at a price of C$0.75 until (i) May 16, 2008; or (ii) in the event that the common shares of the Company commence trading on Tier 1 of the TSX Venture Exchange or the Toronto Stock Exchange prior to May 16, 2008, then May 16, 2011, subject in the latter case to the receipt of all necessary regulatory approvals including the approval of the stock exchange upon which the common shares may trade at the applicable time.

In connection with the closing of the second tranche, Exile Resources paid the Agents and another finder a commission together with broker warrants entitling the holders to acquire an aggregate of 234,850 Units.

The proceeds of this private placement will be used by Exile Resources for working capital and to fund its ongoing acquisition of properties and subsequent exploration programs in Africa.

The private placement was effected pursuant to prospectus exemptions under applicable securities legislation. All securities issued and issuable in connection with the closing of the second tranche of the private placement are subject to a hold period in Canada expiring October 9, 2006.

About Exile Resources Inc.

Exile Resources Inc. is an oil and gas exploration company with interests in the Brazeau River Project, located 160 km south west of Edmonton, Alberta. The Company is also pursuing oil and gas, exploration and development opportunities in Africa. Exile Resources Inc. and, prior to this tranche of the private placement, had 31,943,223 issued and outstanding common shares. Please visit Exile Resource's web site for further information: www.exileresources.com.

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The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

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