Grandview Gold Inc.
OTC Bulletin Board : GVGDF
TSX : GVX

Grandview Gold Inc.

December 28, 2006 15:47 ET

Grandview Gold Inc. Announces $1.5 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Dec. 28, 2006) - Grandview Gold Inc. ("Grandview" or the "Company") (TSX:GVX) (OTCBB:GVGDF) is pleased to announce that it has raised gross proceeds of $1,559,998.70 (CAD) by way of a non-brokered private placement.

The private placement consisted of 2,399,998 "flow-through" units (the "Units") at a price of $0.65(CAD) per Unit. Each Unit consisted of one 'flow through' common share of Grandview and one-half of one non flow-through common share purchase warrant ("Warrant"). Each whole Warrant is exercisable to acquire one common share of Grandview at a price of $1.40 (CAD) for a period of 24 months from closing.

The proceeds from the Unit offering will be used to fund the Company's Canadian gold exploration programs at its newly optioned Rocky Ridge Gold Property in Manitoba, the Rice Lake Gold Property in Manitoba, and its Red Lake Gold Property in Ontario.

Grandview management is committed to the application of advanced geology, geophysical and geochemical science to historic and emerging data, to build targeting and modeling reports that reduce exploration risks and cost, and deliver maximum value to shareholders.

"We want to be ready to hit the ground running on our Canadian properties and make the most of the 2007 field season. We already have, in our opinion, world-class boardroom and field intelligence, but in order to continue our work in the field and remain accountable to our shareholders, we must continue to generate the capital necessary to risk-reduce and undertake exploration programs. These flow-thru funds will help us gain traction here in Canada in 2007," says Grandview President and CEO Paul Sarjeant.

In connection with the offering Grandview was required to pay out of their working capital a cash finder's fee of 8% of the gross proceeds raised under the private placement and they were also required to issue finder's options to acquire non-flow-through Units of Grandview at a price of $0.65 per Unit for a period of 24 months from closing.

Grandview has an option to earn an undivided 70 percent interest in the Rocky Ridge property by incurring $600,000 (CAD) in resource exploration and development expenditures, $85,000 (CAD) in payments, and issuing 225,000 Grandview shares, over a two-year period.

This is not an offer for sale, or a solicitation of an offer to buy, in the United States or to any US Person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act") of any equity shares or any other securities of Grandview Gold Inc. Securities ("securities") of Grandview Gold Inc. are traded on the Toronto Stock Exchange (TSX) and on the OTC BB. This does not constitute, and should not be construed as, "general solicitation or general advertising" as defined under Regulation D of the Securities Act, or "directed selling efforts" under Regulation S of the Securities Act.

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