August 18, 2005 16:06 ET

Lakota Raises Funds and Updates on Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2005) - Lakota Resources Inc. (TSX VENTURE:LAK) (the "Company") announces that it has obtained gross proceeds in the amount of $187,500.00 with respect to the sale of 375,000 units from the first tranche closing today of a previously announced (press release May 6, 2005) private placement of units. Each unit consists of one share and one warrant. Each warrant entitles the holder to purchase one share for two years at $0.65 per share if exercised in the first year or $0.75 per share if exercised in the second year. The agent, Integral Wealth Securities Limited ("Integral"), received $16,875.00 for payment of commission and work fee. In addition, Integral received 37,500 broker warrants, exercisable for one year at $0.50 per share.

Integral and the Company have mutually agreed to extend the closing date for closure of the balance of the private placement to September 18, 2005. Due to the summer holiday season, Integral has requested the extra time to allow for receipt and processing of subscriptions from the investors in this private placement. The TSX Venture Exchange has granted the Company the extension to September 18, 2005 to complete the subsequent tranche(s) of the financing.

As previously announced (press release May 6, 2005), the entire offering (including the first tranche) entails the placement of up to an aggregate total of 9,000,000 units of the Company at a price of $0.50 per unit, for gross proceeds of up to $4,500,000, on a best efforts basis. All terms of the private placement other than the completion date for the subsequent tranche(s) remain unchanged.


Statements included in this press release that are not historical facts may be considered "forward-looking statements". All statements regarding, the gross proceeds and the anticipated closing date are forward-looking statements that involve various risks and uncertainties. There can be no assurance that the Private Placement will raise the amount set forth herein or that the offering will close on the date anticipated. Important factors that could cause actual results to differ materially from these forward-looking statements.

Outstanding Shares: 27,791,134

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

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