G2 Resources Inc.
TSX VENTURE : GRT

August 15, 2005 14:27 ET

G2 Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

G2 Resources Inc. (TSX VENTURE:GRT) announces that it intends to offer for sale on a private placement basis up to 10,000,000 units at a price of $0.40 per unit for total aggregate consideration of $4,000,000. Each unit will be comprised of one Class A share and one-half of a Class A share purchase warrant, each whole warrant entitling the holder to subscribe for one Class A share at a price of $0.50 until March 31, 2006. With the consent of G2, the agent will have the option to increase the size of the offering by an additional 2,500,000 units. The private placement will be offered on a best efforts agency basis by Acumen Capital Finance Partners Limited with Pacific International Securities Inc. acting as a special selling group member. It is expected that officers and directors of G2 will participate in the private placement.

G2 intends to use the proceeds of this financing for its capital expenditure program and for general corporate purposes.

G2 has been formed to continue certain exploration initiatives of both Goose River Resources Ltd. and SignalEnergy Inc. On August 9, 2005, G2 acquired certain producing assets and undeveloped lands and opportunities in

Alberta and Saskatchewan from each of Goose River and SignalEnergy. At the same time, the private placement of 3,552,000 shares of G2 at $0.161 per share to officers, directors and employees of G2 was completed. In addition, options to acquire an aggregate of 710,000 Class A shares of G2 were granted to officers, directors and employees of G2, exercisable at $0.161 per share.

There are currently 7,105,310 Class A shares of G2 issued and outstanding. G2 expects its shares to begin trading on the TSX Venture Exchange on or about August 16, 2005, under the symbol "GRT".

G2's management team consists of Curtis Hartzler, President and Chief Executive Officer; Leonard Arcovio, Vice President, Finance; Manfred Rockel, Vice President, Engineering; and Rod Morris, Vice President, Exploration. The board of directors of G2 consists of Hugh Mogensen (Chairman), Yook Mah, Jake Pronk and Curtis Hartzler.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • G2 Resources Inc.
    Curtis A. Hartzler
    President
    (403) 263-4310
    (403) 263-4368 (FAX)
    or
    G2 Resources Inc.
    Leonard D. Arcovio
    Vice President, Finance
    (403) 263-4310
    (403) 263-4368 (FAX)