Goldrush Resources Ltd.
TSX VENTURE : GOD

Goldrush Resources Ltd.

May 04, 2006 09:30 ET

Goldrush Announces Closing of Two Private Placements

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 4, 2006) - Goldrush Resources Ltd. (TSX VENTURE:GOD) ("Goldrush" or the "Company") has closed two non-brokered private placement of 14,000,000 units of its securities, first announced on April 7 and April 20, 2006. The Company has issued 13,000,000 units at a price of $0.25 per unit and 1,000,000 units at a price of $0.27 per unit for gross proceeds of $3,520,000. Each unit is comprised of one common share and one common share purchase warrant entitling the holder to purchase one additional share at a price of $0.35 up to May 4, 2007. Proceeds of the placements will be used to fund exploration programs on the Company’s extensive collection of exploration permits located in Burkina Faso, West Africa and for working capital purposes. Finder’s fees of $123,800 in cash and 615,000 share purchase warrants with the same terms as the share purchase warrants attached to the units were paid in relation to these financings.

Shares issued on the private placement and any shares issued pursuant to the exercise of the warrants are subject to a hold period expiring September 5, 2006.

For further information on Goldrush Resources Ltd., investors are invited to visit the Company’s website at www.goldrushresources.ca.

ON BEHALF OF THE BOARD OF DIRECTORS GOLDRUSH RESOURCES LTD.

Len Brownlie – President

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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