Guyana Goldfields Inc.
TSX : GUY

Guyana Goldfields Inc.

March 31, 2006 08:10 ET

Guyana Goldfields Inc. Announces $15 Million Bought Deal Equity Financing

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Guyana Goldfields Inc. (the "Company") (TSX:GUY) is pleased to announce that it has entered into an agreement with Sprott Securities Inc. pursuant to which Sprott has agreed to purchase (as underwriter) 3,703,704 units of the Company on a bought deal private placement basis at a price of $4.05. Each unit shall consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant shall be exercisable at any time for one common share at a price of $5.50 per share for a period of two years following closing. The Company shall have the right, 180 days after Closing, to call the outstanding Warrants should the common shares trade above $7.00 for 20 consecutive trading days Sprott shall be entitled to a cash commission equal to 6.0% of the gross proceeds of the Offering.

Sprott shall also have the option to purchase up to an additional 1,234,568 units at the issue price on or prior to the closing date in respect of the offering. The offering is scheduled to close on or about April 20, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

The net proceeds of the offering will be for continued exploration and development of the Aurora mine properties and for general working capital purposes.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

This document may contain or refer to forward-looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

About Guyana Goldfields

Guyana Goldfields Inc is a Canadian based mineral exploration Company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil. The Company holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996.

Additional Information

Information is available on the Company's website at www.guygold.com and on www.sedar.com and through the Company's offices at:

141 Adelaide Street West, Suite 301, Toronto, Ontario, Canada, M5H 3L5

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

Contact Information