Gallery Resources Limited
TSX VENTURE : GYR

Gallery Resources Limited

July 07, 2005 12:16 ET

Gallery Resources Limited Announces Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 7, 2005) - Gallery Resources Limited (the "Corporation") (TSX VENTURE:GYR) announced today a proposed non-brokered private placement of up to 15,000,000 units of the Corporation at a price of $0.06 per unit, for proceeds of up to $900,000. Each unit will consist of one common share or flow-through common share and a warrant to purchase an additional common share at an exercise price of $0.10 per share for a period of eighteen months from closing of the private placement.

The Corporation has agreed to terms with the MineralFields Group of Toronto, Ontario for the private placement of a minimum of 1,666,666 and a maximum of 4,166,666 units of the Corporation at a price of $0.06 per unit, for proceeds of a minimum of $100,000 and a maximum of $250,000. The purchasers will be one or two MineralFields flow-through limited partnership funds.

In connection with the private placement with the MineralFields Group, the Corporation will pay a finder's fee equal to 5% and issue warrants equivalent to 10% of the number of units purchased to Limited Market Dealer Inc. ("LMDI"). The warrants issued to LMDI have the same terms as the warrants to be issued pursuant to the private placement.

Additional finder's fees may be paid in connection with the private placement in accordance with applicable securities laws and TSX Venture Exchange Policies.

Completion of the private placement is subject to regulatory approval.

The proceeds from the private placement will be used for exploration of the Corporation's Shabogamo Project and general working capital.

Bruce Costerd, President & C.E.O.


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

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