Glass Earth Gold Limited
TSX VENTURE : GEL

Glass Earth Gold Limited

December 28, 2010 09:00 ET

Glass Earth Closes First Tranche of $4 Million Placement; Adds Program to Improve Liquidity

WELLINGTON, NEW ZEALAND--(Marketwire - Dec. 28, 2010) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") today announces that it has closed the non-brokered portion of its previously announced Private Placement. A total of 10,016,299 units have been sold at a price of $0.30 per unit for gross proceeds of C$3,004,890.  

Each Unit consists of one common share and one half of a common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.50 per share, exercisable for a period of 24 months from the date of issuance. The units are subject to a four month hold period expiring on April 24, 2011.

The Company anticipates closing the brokered portion of the private placement in early January.

The proceeds of this financing will be used for mineral exploration and general working capital purposes.

Market Liquidity Program

Glass Earth Gold Limited has initiated a Market Liquidity Program (more commonly known as market-making), as part of investor relations' services provided by CHF Investor Relations. First retained in June 2008, CHF Investor Relations has offered its clients market-making since 2002. Subject to TSX Venture approval, fees paid to CHF will increase, accordingly, to C$7,500 per month while all other terms of their IR agreement remain unchanged (see news release dated June 20, 2008). Simon Henderson, Glass Earth President and CEO, has provided 100,000 GEL shares, in certificate form from his personal holdings, for the purposes of this program.

The market-making activity is undertaken using a registered broker, Mackie Research Capital, in compliance with the guidelines established by the TSX Venture Exchange Policy 3.4 and other relevant policies so that trading orders in the Issuer's stock are made to manage volatility and improve liquidity.

About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 2,800 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 around the Waihi/Martha Gold Mine; The Newmont-Glass Earth Waihi West JV (65/35) is currently being explored and managed by Newmont. The Newmont-Glass Earth Hauraki JV (65/35) has recently announced significant results on its WKP – West Project (August 25th press release).

WKP West - Follow-up drilling campaigns planned for the last quarter 2010 will now commence in early 2011, following delays in site access and drill equipment scheduling.

Central Volcanic Region – Glass Earth has defined several significant epithermal gold targets in this region, drilling is currently underway on the Muirs Reef project (Mamaku district) where the strike and depth potential of the Muirs Massey Reefs are being tested, as well as the new East and West vein systems interpreted from 3D resistivity surveying. Two rigs have been drilling, with results anticipated in early 2011.

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

Otago Region – Field programmes to commence the drilling of highly ranked Serpentine and Game Hen gold targets is planned for early 2011.

Two alluvial mining operations continue into the 2011 year, coupled with an acceleration of alluvial exploration and resource definition; Glass Earth / Dunstan Mining (placer mining 50/50 partner) plan to treble gold output in 2011.

To receive Company news via email, contact jennie@chfir.com and mention "Glass Earth news" in the subject line.

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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