Hudson Resources Inc.

Hudson Resources Inc.

April 06, 2006 16:24 ET

Hudson Announces Terms for $3 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) -


HUDSON RESOURCES INC. ("Hudson") (TSX VENTURE:HUD) is pleased to announce the pricing of a $3 million brokered private placement of units, as previously announced in our news release dated March 6, 2006.

The offering consists of up to $3 million in units at a price of $0.60 per unit. Each unit consists of one Hudson common share and one-half of a common share purchase warrant. Each full common share purchase warrant will entitle the holder to purchase one common share of Hudson up to 12 months from closing at a price of $0.80 per share and at a price of $1.00 per share for a second 12-month period. Hudson has also granted the agents an option to raise up to an additional $2.0 million. Subject to stock exchange approvals, the offering is scheduled to close April 18, 2006.

Agents for the offering are Paradigm Capital Inc. and Raymond James Ltd. The agents will receive a cash commission equal to 7 per cent of the gross proceeds of the offering. The commission will be payable at closing. In addition, Hudson will grant the agents compensation options entitling the agents, for a period of 12 months from closing, to acquire the number of shares of Hudson, at the issue price for the units under the offering, that is equal to 10 per cent of the number of units issued in the offering.

The proceeds of the placement will be used to advance the Company's Greenland diamond properties. Hudson has outlined an aggressive exploration program for 2006 with the objective of determining the economic potential of the previously discovered Garnet Lake diamondiferous dike. As reported in the news release dated March 27, 2006, Hudson has already identified the Garnet Lake diamondiferous dike structure over 1,000m as it dips to the east. To date, diamonds have been found over a potential strike length of 1,000m in a north-south direction. Additional results will be reported shortly, upon the conclusion of the survey.

Hudson has also initiated a 5,000 km airborne geophysical survey that is being conducted by Fugro Airborne Surveys. The helicopter based system uses a magnetometer attached to a stinger in order to produce a high resolution end product. The survey is being flown at 50m line spacing at a height of 30m above the ground. Drilling is being targeted to start within one and a half months. The Company is also planning to complete a large 100+ tonne kimberlite sample and additional prospecting in 2006. The remaining balance of the financing will be used for general and administrative expenses as well as for working capital.


James Tuer, President

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the U.S. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the U.S. 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.

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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

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