Garson Resources Ltd.
CNQ : GARR

Garson Resources Ltd.

December 05, 2006 16:00 ET

Garson Resources Ltd. Announces $4 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Garson Resources Ltd. (CNQ:GARR) ("Garson") is pleased to announce that it has engaged Bolder Investment Partners Ltd. to act as agent for an Offering of Non-Flow Through Units ("Units") and Flow Through Shares by way of brokered private placement for gross proceeds of up to $4,040,000. The Offering will be for up to 13,200,000 Units priced at $0.20 per Unit, each Unit consisting of one share and one-half a share purchase warrant, each whole warrant exercisable for one common share at $0.27 for a period of two years from closing. The Warrants will be subject to an accelerated expiry provision such that upon Piper's shares trading at or above a volume weighted average trading price of $0.55 for 20 consecutive trading days the Company may give notice that the Warrants will expire 30 days from the date of providing such notice. Additionally, the Offering will consist of up to 5,600,000 Flow Through Shares priced at $0.25 per Share. The Agent will receive compensation of a 7.5% commission and 8% Agent's warrants based on the total Units and Flow Through Shares placed, each warrant exercisable at $0.27 for two years and being subject to the shortened expiry clause. The Private Placement is subject to regulatory approval and all securities issued will have hold periods of four months.

Proceeds from the private placement will be used for financing the acquisition and exploration of the New Britannia Mine pursuant to its news release dated October 10, 2006 whereby Piper Capital (60%) and Garson Resources Ltd. (40%) announced that they had entered into a definitive purchase agreement with Kinross Gold Corporation ("Kinross") and Pegasus Mines Ltd. as well as a letter of understanding with High River Gold Mines Ltd. ("High River") to acquire a 100% interest in the New Britannia Mine and mill located in Snow Lake, Manitoba.

The New Britannia Mine assets include about 3,900 hectares of mineral claims and leases, the associated plant, infrastructure and some equipment including a fully permitted 2,150 tonne per day modern mill and tailings facility. A measured and indicated mineral resource of 364,000 ounces of gold (2,211,000 tonnes at 5.11 grams per tonne) for the mine, and an inferred mineral resource of 176,000 ounces of gold (1,094,000 tonnes at 5.01 grams per tonne) for the total property were estimated using a gold price of US$400 per ounce and reported in a recently completed National Instrument 43-101 technical report authored by William Lewis B.Sc., P.Geo of Micon International Ltd. that is available for viewing on the Company's website.

ON BEHALF OF THE BOARD

Edward Stringer, President and Director

This news release may contain forward-looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the TSX Venture Exchange or the CNQ Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.


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

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