Knight Resources Ltd.
TSX VENTURE : KNP
FRANKFURT : KRL

Knight Resources Ltd.

October 16, 2006 19:47 ET

Knight Resources Ltd.: Private Placement and West Raglan Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Mr. David Patterson, Chief Executive Officer of Knight Resources Ltd. (TSX VENTURE:KNP)(FWB:KRL), reports that the Company has successfully raised $600,000 through a non-brokered private placement. These funds were raised by the Company issuing a total of 2,500,000 units at a price of $0.24 per unit. Each unit is comprised of one flow-through common share and one-half of one common share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one additional non flow-through common share of the company, for a period of twelve months from the closing of the private placement, at a price of $0.29 per share. Closing of the private placement is subject to only TSX Venture Exchange approval.

The Company is paying a finder's fee of 6% of the gross proceeds received from the private placement.

The Company has recently completed its 2006 exploration program on the West Raglan Project. Approximately 4,300 metres of drilling was completed during the program, 1,300 metres more than announced in the Company's news release dated July 13, 2006. The Company will issue a news release with results from the 2006 program when assay results are available.

ON BEHALF OF THE BOARD OF KNIGHT RESOURCES LTD.

David Patterson, Chief Executive Officer

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

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