J-Pacific Gold Inc.
TSX VENTURE : JPN
OTC Bulletin Board : JPNJF

J-Pacific Gold Inc.

October 16, 2006 11:15 ET

J-Pacific Arranges Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - J-Pacific Gold Inc. ("the "Company") (TSX VENTURE:JPN)(OTCBB:JPNJF), a company engaged in the exploration of gold prospects in North America, is pleased to announce a non-brokered private placement pursuant to which the Company will issue up to 11,500,000 non flow-through units (the "Units") at a price of $0.35 per Unit and up to 2,500,000 flow-through units ("FT Units") at a price of $0.40 per FT Unit for total proceeds of up to $5,025,000. Each Unit will consist of one common share and one warrant (a "Warrant"), which will entitle the holder to purchase one additional common share at a price of $0.55 per share for a period of 24 months after the closing of the private placement. Each FT Unit will consist of one common share which will qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one Warrant. The Company will, subject to TSX Venture Exchange approval, pay a finder's and administration fee to certain finders in the total amount of $117,914 and will issue 296,200 finder's warrants. Each finder's warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.55 per share for a period of 24 months after the closing of the private placement.

All securities issued will be subject to a four-month hold period. The proceeds of the financing will be used to pursue exploration programs on the Company's Blackdome, Elizabeth, Montgolfier and Callaghan projects and for corporate working capital. The proceeds from the sale of the FT Units will be used for exploration expenses that will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2006 taxation year.

The private placement is subject to regulatory approval.

On behalf of the Board of Directors,

N. Ferris, President and CEO

Statements in this press release, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward-looking statements include comments regarding the establishment and estimates of mineral reserves (and non-reserve mineralized material), future increases in mineral reserves, the recovery of any mineral reserves, construction cost estimates, construction completion dates, equipment requirements and costs, production, production commencement dates, grade, processing capacity, potential mine life, results of feasibility studies, development, costs and expenditures. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, tons mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms for equipment, construction, working capital and other purposes; the availability of adequate power and water supplies; the availability of adequate mining equipment; technical, permitting, mining or processing issues; and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management.

The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the past 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • J-Pacific Gold Inc.
    Nick Ferris
    President and CEO
    1-888-236-5200 or (604) 684-6677
    (604) 684-6678 (FAX)
    Email: info@jpgold.com
    Website: www.jpgold.com
    or
    Marston Webb International
    Victor Webb
    Media Inquiries
    (212) 684-6601
    or
    Marston Webb International
    Madlene Olson
    Media Inquiries
    (212) 684-6601
    (212) 725-4709 (FAX)
    Email: marwebint@cs.com