Goldrush Resources Ltd.

Goldrush Resources Ltd.

May 30, 2006 09:30 ET

Goldrush Reports First Quarter 2006 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - Goldrush Resources Ltd. (NEX:GOD.H) today announced its first quarter 2006 financial results. All amounts are expressed in Canadian Dollars.

The Company’s net loss for the three months ending March 31, 2006 was ($71,960) or ($0.00) per share compared with a net income of $275 or $0.00 per share for the same period in 2005. In 2006, higher trust and filing fees ($17,322 in 2006 vs. $4,335 in 2005), management fees ($15,000 in 2006 vs $7,500 in 2005), shareholder communication expenses ($14,881 in 2006 vs. nil in 2005), travel expenses ($8,420 in 2006 vs. nil in 2005), accretion of long term debt related to the issuance of a convertible debenture ($7,132) and general exploration expenses ($3,886 in 2006 vs. nil in 2005) were indications of the increased corporate activity of the Company after it acquired 21 mining exploration permits in Burkina Faso, West Africa. These higher costs were partially offset by gains on foreign exchange ($3,976 in 2006 vs nil in 2005) and bank interest ($2,452 in 2006 vs nil in 2005) and reduced legal and accounting expense ($10,967 in 2006 vs $14,437 in 2005). Legal and accounting fees were higher in 2005 due to the completion of the Company’s reactivation and graduation to the Tier 2 board of the TSX Venture Exchange.

The Company had a net working capital of $579,346 at March 31, 2006, as compared to a working capital of $38,169 as at December 31, 2005. The Company’s increase in working capital is a result of the $700,000 received from the exercise of 7,000,000 share purchase warrants in early 2006. Subsequent to the end of the quarter, the Company completed two private placement financings which provided gross proceeds of $3,520,000 and the Company now has sufficient cash available to complete a minimum $2,500,000 work program on the Burkina Faso exploration permits and meet all administrative, legal and regulatory requirements for the remaining nine months of fiscal 2006.

Property Exploration

During the quarter, the Company conducted no exploration work on the OK Copper Property and assigned its interest in the OK Copper Property option to Prophecy Resources Ltd., ("Prophecy") an arms-length private B.C. Company in consideration of the issue of 100,000 Prophecy shares and the payment of $10,000 upon completion of Prophecy’s Initial Public Offering. The West African exploration program was initiated in March 2006 and the Company plans to announce initial exploration results in the near future.


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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