Grande Portage Resources Ltd.

Grande Portage Resources Ltd.

December 07, 2006 15:07 ET

Grande Portage Resources Closes Brokered and Non-Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - Grande Portage Resources Ltd. (TSX VENTURE:GPG) ("Grande Portage" or "the Company") is pleased to announce that it has closed the previously announced brokered private placement led by Pacific International Securities Inc. and including Dundee Securities Corporation (the "Agents") (November 7 and 15, 2006) to raise gross proceeds of $9 million, and it has closed a non brokered offering to raise a further $616,000, for a grand total of $9,616,000 (the "Offerings").

The Company has issued 4,250,000 flow-through units ("FT Units") of the Company at $0.80 per FT Unit to raise gross flow-through proceeds of C$3,400,000 (the "FT Offering"). As previously announced, each FT Unit consists of one (1) flow-through common share (a "FT Share") of the Company and one half of one common share purchase warrant (one whole warrant being a "Warrant"). Each Warrant is exercisable to purchase one additional non flow-through common share at an exercise price of $1.10 per share, if exercised on or before June 7, 2008. The Company has also issued 8,000,000 non flow-through units (the "Units") at $0.70 per Unit to raise gross proceeds of $5,600,000. Each Unit consists of one common share of the Company and one-half of one Warrant.

The Company paid the Agents a commission of 7% in cash and Units, and also issued to the Agents options to purchase common shares equal in number to 8% of the number of FT Units and Units sold under the brokered offering, at an exercise price of $0.85 per share until June 7, 2008.

The Company has also issued under the non-brokered private placement another 880,000 Units at a price of $0.70 per Unit to raise gross proceeds of an additional $616,000. Each Unit shall also consist of one common share of the Company and one half of one Warrant. There was no finder's fee paid in connection with the non brokered financing. All Warrants have the same terms and conditions and expire on June 7, 2008. All securities issued have resale restrictions until April 8, 2007.

The Company intends to use the net proceeds from the Offerings to advance the Merry Widow properties to feasibility stage. Specifically, the Company will grid drill the Merry Widow along strike and length for the 3.5 kilometer extension. The Company shall also drill extensively along the 8 kilometer strike length of the Old Sport Horizon. The funds will also be allocated for the expansion of airborne geophysics, fieldwork, environmental and metallurgy, property management, logistics and general working capital. The gross flow-through proceeds raised from the FT Offering will be used for Canadian exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2006 taxation year.


Alistair MacLennan, President/CEO

About Grande Portage Resources Ltd.

Grande Portage Resources Ltd. is a mineral exploration and development company focused on massive sulphide exploration in British Columbia. Grande Portage is operated by experienced managers and professionals who have been effective in discovery, mine development, and mining operations throughout North and South America, Africa, Europe, and Central Asia.

Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". These statements involve risks and uncertainties due to the inherent nature of the Company's mineral resource exploration activities, and therefore are subject to change at any time. The Company's actual results may differ materially from the expected results.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

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