FRANC-OR RESOURCES CORPORATION
TSX : FOR

FRANC-OR RESOURCES CORPORATION

July 09, 2008 15:33 ET

Franc-Or Completes Second Tranche of Private Placement for $1.8 Million

MONTREAL, QUEBEC--(Marketwire - July 9, 2008) - Franc-Or Resources Corporation (TSX:FOR) is pleased to announce the closing of the second tranche of a two-tranche Private Placement. Combined with the first tranche of $200,000 as announced on June 5, 2008, this brings a total of $2 million in proceeds which will be used by Franc-Or for working capital and ongoing exploration purposes. This second tranche consists of 18,000,000 Units at $0.10 per Unit with a lead order from Aberdeen International Inc. (TSX:AAB), and is subject to normal regulatory approvals.

Each Unit consists of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant shall entitle the holder to acquire one Common Share of the Company for $0.12 until June 9, 2011. The Common Shares and the Common Shares issuable upon the exercise of the Warrants will be subject to a hold period of four months plus one day pursuant to applicable securities legislation. Details of the conditions that may accelerate the expiry date for exercise of the Warrants, as well as details of an advisory fee that comprises 6% each in cash commission and compensation warrants are presented in the original Press Release of May 12, 2008 that announced the non-brokered, best efforts Private Placement.

This second tranche of the Private Placement was approved at the Annual and Special Meeting of Shareholders to be held on June 26, 2008. Effective July 10, Robert J. Casaceli will resign as President, CEO, and Director of Franc-Or Resources, and will be replaced in all positions by Scott Moore. Mr. Stan Bharti will also be appointed to the Board of Directors of the Corporation, upon the resignation of Mr. David Z. Royle. The appointments of Scoot Moore and Stan Bharti are subject to normal regulatory approvals.

Franc-Or currently owns and operates the Mario property in central Peru which exhibits Zn-Pb-Ag-Au vein and replacement mineralization, and the Humboldt Springs Au/Ag exploration property in north-central Nevada.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Franc-Or, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Franc-Or's expectations are the risks detailed herein and from time to time in the filings made by Franc-Or with securities regulators.

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