Lynden Ventures Ltd.
NEX BOARD : LVL.H

Lynden Ventures Ltd.

August 31, 2005 19:38 ET

Lynden Closes $2.75 Million Private Placement, Agreement with Canadian Spirit Resources Approved, Re-qualifies for Tier 2 of TSXV

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 31, 2005) - Lynden Ventures Ltd. (NEX:LVL.H) reports that the previously announced private placement in the amount of C$2.75 million has closed. These funds were raised through a non-brokered private placement of 5.5 million units at C$0.50 per unit. Each unit consists of one share and one-half of a share purchase warrant. Every whole warrant will entitle the holder to purchase one share at a price of C$0.75 for a period of one year. The shares, and any shares to be issued on exercise of the warrants, are subject to a hold period expiring December 31, 2005. The Company paid finders' fees of C$109,375 to two individuals and 34,560 units to Haywood Securities Inc. in connection with the private placement.

Additionally, the Company has been informed by the TSX Venture Exchange ("TSXV") of their acceptance of the joint venture agreement dated April 27, 2005 with Canadian Spirit Resources Inc. ("CSRI") (TSX VENTURE:SPI) under which Lynden and CSRI have agreed to acquire, explore and develop petroleum and natural gas rights in central Alberta. The joint venture will be focused on, but not limited to, coalbed methane (natural gas from coal or "NGC") targets. Lynden will earn a 50% participating interest in the joint venture lands by incurring expenditures of C$2.5 million. CSRI, headquartered in Calgary, Alberta, will act as operator under the joint venture.

The initial joint venture lands are comprised of three sections (768 hectares) of land in the form of P&NG leases, none of which has been drilled by CSRI. These lands are located in an area with existing NGC and conventional production. CSRI has identified a number of NGC drilling locations initially targeting a Horseshoe Canyon prospect. The first well is expected to be spudded in mid-September.

With the closing of the private placement and TSXV acceptance of the joint venture agreement with CSRI, Lynden has re-qualified for listing on Tier 2 of the TSXV. The Company expects to begin trading on Tier 2 of the TSXV under the symbol LVL, effective September 2, 2005.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN VENTURES LTD.

Colin Watt, President and CEO

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

Contact Information

  • Lynden Ventures Ltd.
    Colin Watt
    President and CEO
    (604) 684-0561
    (604) 602-9311 (FAX)