Gold Point Energy Corp.
TSX VENTURE : GPE

Gold Point Energy Corp.

December 08, 2006 16:22 ET

GP Energy Undertakes Short Form Offering Through Canaccord Capital Corporation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2006) - Gold Point Energy Corp. (the "Company") (TSX VENTURE:GPE)(FWB: WKN# A0HGQ1) has entered into an agreement with Canaccord Capital Corporation ("Canaccord") to use its commercially reasonable efforts to complete a Short Form Offering of 5,000,000 Units, to raise $2,000,000, at $0.40 per Unit. Each Unit consists of one share and one Warrant. Each Warrant will entitle the holder to acquire one additional share at a price of $0.50 for a period of two years following the date of closing of the Offering. The Warrants will be transferable and, subject to evidence of satisfactory distribution in accordance with the rules of the TSX Venture Exchange, will be listed and posted for trading on the Exchange.

In addition to the Short Form Offering, the Company has arranged a brokered financing with Canaccord of 625,000 Units, at $0.40 per Unit for gross proceeds of $250,000, with each Unit comprising a share and a warrant with each warrant entitling the holder to purchase an additional share for a period of two years at a price of $0.50 per share. These securities will be subject to a four month hold period. These Warrants will be transferable and, subject to evidence of satisfactory distribution in accordance with the rules of the TSX Venture Exchange, will be listed and posted for trading on the Exchange after expiry of the four month hold period. Insiders may participate in the private placement.

Canaccord will receive a cash commission equal to 8% of the gross proceeds of the sale of Units under the Short Form Offering and under the brokered financing, and agent's warrants entitling it to subscribe for that number of common shares equal to 8% of the aggregate number of Units sold in the Offerings at $0.50 per share for a period of two years following the closing of the Offering. A reduced commission may be paid for orders directed to Canaccord in the private placement. In addition, a corporate finance fee payable in Units and an administration fee are payable.

This transaction is subject to regulatory approval.

The net proceeds received by the Company will be used to fund on-going work programs on the Company's properties and for general working capital purposes.

ON BEHALF OF THE BOARD

Nick DeMare, Chief Financial Officer


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