Golden Band Resources Inc.
TSX VENTURE : GBN

Golden Band Resources Inc.

April 07, 2006 14:29 ET

Golden Band Resources Closes $3.5 Million Private Placement

SASKATOON, SASKATCHEWAN--(CCNMatthews - April 7, 2006) - Golden Band Resources Inc. (TSX VENTURE:GBN) announced today that it has closed its previously announced (March 14, 2006) private placement for a total of $3,500,000. The financing totals 7,777,777 units at a price of $0.45 that consist of one common share and one common share purchase warrant. Each warrant is exercisable to purchase one common share of the company at a price of $0.65 for a period of two years from the closing date of the private placement, subject to adjustment. Commencing on the date that is four months and one day after the closing date of the private placement, if the closing price of the company's common shares is equal to or greater than $0.90 for 15 consecutive trading days, and upon written notice to the holders of the warrants, the company has the option to reduce the expiration date of the warrants to 25 business days from the date notice is provided by the company to the warrant holders.

The shares issued pursuant to the financing will be subject to a hold period expiring August 8, 2006, in accordance with applicable securities laws.

Finder's fees based on 5% of the gross proceeds raised are payable to arms-length parties.

Proceeds from the private placement will be used to fund work on the company's La Ronge Project in Saskatchewan and for general working capital. Subject to positive Preliminary Economic Assessment (scoping study) reports for the Greater Waddy Lake and Bingo projects being received, this work will include predevelopment-related engineering studies, including the refurbishment of the company's 100%-owned Jolu gold mill, and environmental baseline studies in the Greater Waddy Lake area. The scoping study reports are expected from the independent consultants in May 2006.

On behalf of the Board of Directors,

Ronald Netolitzky, President, and Director

Forward-Looking Statements: Some of the statements in this news release contain forward-looking information which involves inherent risk and uncertainty that may affect the business of Golden Band Resources Inc. Actual results may differ materially from those currently anticipated in such statements.


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

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