Manitou Gold Inc.

Manitou Gold Inc.

June 11, 2010 16:58 ET

Manitou Gold Announces Closing of Private Placement

SUDBURY, ONTARIO--(Marketwire - June 11, 2010) -


Manitou Gold Inc. (TSX VENTURE:MTU) ("Manitou Gold" or the "Company") announced today that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 3,850,000 units ("Units") at a price of $0.75 per Unit to raise aggregate gross proceeds of $2,887,500. Each Unit consists of one flow-through common share and one-half of one share purchase warrant (each whole such share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of Manitou Gold at $0.75 until December 11, 2011.

In connection with the Offering, the Company has also issued an aggregate of 77,000 broker warrants to Oberon Capital Corporation, each such broker warrant entitling the holder to acquire one common share of the Company at an exercise price of $0.535 until December 11, 2011.

All of the securities issued in the Offering are subject to a statutory hold period expiring on October 12, 2010.

Proceeds of the Offering will be used to advance the Company's portfolio of gold exploration properties in the Gold Rock Mining Camp.

The Company also announces that it has granted 385,000 options to purchase shares of the Company, at a price of $0.45 per share for a period of 3 years, to certain officers, consultants and employees of the Company.

About Manitou Gold

Manitou Gold Inc. is a gold exploration company with a dominant land position in the Gold Rock Mining Camp, located in the Kenora Mining District, in Northwestern Ontario. The Company's largest shareholder is Goldcorp Inc, who holds a 14% interest in the Company.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers should also refer to the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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