Glass Earth Gold Limited

Glass Earth Gold Limited

June 15, 2012 08:34 ET

Glass Earth Announces Private Placement

WELLINGTON, NEW ZEALAND--(Marketwire - June 15, 2012) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") announced today that it is undertaking a non-brokered private placement financing for gross proceeds of up to C$2,200,000.

The proceeds of this private placement will primarily be used to finance the purchase of 50% of the placer gold operations announced on March 15, 2012, bringing Glass Earth Gold's ownership to 100%. This allows for improved planning and coordination of activities so that all 3 sites with mining permits can be operating. It will also provide working capital for the operations.

Placer gold operations are expected to generate up to $2 million in 2012 and up to $6 million in cash in 2013, thereby covering general and administrative expenses and a large portion of exploration costs.

The private placement will consist of up to 11 million Units at a price of C$0.20 per Unit. Each Unit will consist of one common share and one common share purchase Warrant. Each Warrant will entitle the holder to purchase one common share at a price of C$0.35 per share, exercisable for a period of 24 months from the date of issuance.

Glass Earth will pay Finders a cash finder's fee of 6% of the funds raised. In addition, Glass Earth will issue to qualified Finders, non-transferable finder's warrants ("Finders' Warrants") to acquire Warrants in the amount that is equal to 6% of the number of Units sold. Each of the Finders' Warrants will entitle the holder to acquire one Unit of Glass Earth having the same terms and conditions as the Units sold.

All of the Units and Finders' Warrants issued will be subject to a four month hold period.

The Private Placement is subject to acceptance by the TSX Venture Exchange.

About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of approximately 10,000 square kilometres in the North and South Islands.

In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki/Central Volcanic Region. This Region is host to the 10 million ounce Martha Gold Mine, (Newmont Mining).

Hauraki Region - Glass Earth occupies a significant ground position adjacent to the Waihi/Martha Gold Mine; The Newmont-Glass Earth Waihi West JV (Newmont earning 65%) and Hauraki JV (North and Central Areas - 65/35), including drilling at the WKP discovery, is being actively explored and managed by Newmont in concert with Glass Earth Gold.

Central Volcanic Region - Glass Earth has defined several significant epithermal gold targets in this region including the Muirs Reef project (Mamaku district).

In the South Island, exploration efforts are focused on the Otago Region for mesothermal "Macraes-style" gold targets and placer/alluvial gold.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor New Zealand Exchange Limited has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.

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