Gulf Shores Resources Ltd.
TSX VENTURE : GUL

Gulf Shores Resources Ltd.

April 04, 2011 11:23 ET

Gulf Shores Resources Ltd. Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 4, 2011) - Gulf Shores Resources Ltd. (TSX VENTURE:GUL) (the "Company") is arranging a non-brokered private placement of $800,000 to be raised through the issuance of 13,500,000 flow-through units ("FT Units") at a price of $0.05 per FT Unit and 2,500,000 non-flow-through units ("NFT Units") at a price of $0.05 per NFT Unit. Each FT Unit will be comprised of one flow-through common share and one-half of one flow-through common share purchase warrant ("FT Warrant"). One whole FT Warrant will entitle the holder to purchase one flow-through common share for a period of two years at a price of $0.10 per share. Each NFT Unit will be comprised of one common share and one share purchase warrant ("NFT Warrant"). One whole NFT Warrant will entitle the holder to purchase one non-flow-through common share for a period of two years at a price of $0.10 per share.

The FT Warrants and NFT Warrants are subject to an acceleration clause such that in the event the closing price of the Company's common shares on the Exchange is equal to greater than $0.15 per share for 20 consecutive trading days at any time following four months after the date of closing, the Company may, by notice to the warrant holders, reduce the remaining exercise price period of the FT and NFT Warrants to not less than 30 days following the date of such notice.

The proceeds of the financing will be used for the drilling of Bakken oil wells on the Company's recently acquired Petroleum & Natural Gas rights in the Wapella area of South East Saskatchewan and for general working capital purposes.

The private placement is subject to TSX Venture Exchange approval.

ON BEHALF OF THE BOARD

Michael Turko, CEO, President and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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