Manitou Gold Inc.
TSX VENTURE : MTU

Manitou Gold Inc.

March 16, 2011 07:24 ET

Manitou Gold Inc. Announces $7 Million Private Placement

SUDBURY, ONTARIO--(Marketwire - March 16, 2011) -

NOT FOR DISSEMINATION INTO THE UNITED STATED OR THROUGH U.S. NEWS WIRE SERVICES

Manitou Gold Inc. (TSX VENTURE:MTU) ("Manitou Gold" or the "Company") is pleased to announce that it has engaged Canaccord Genuity Corp. (the "Agent") to act as agent in connection with a proposed offering of gross proceeds of up to $7,000,000. The proceeds will be raised by the issuance of any combination of units and flow-through Shares of Manitou Gold Inc. at a price of $0.55 per unit or flow-through share, subject to a maximum of $3,000,000 issued in flow-through shares. In addition, the Company will grant the Agent an option to sell additional units and flow-through shares of the Company, to raise additional gross proceeds of up to $3,000,000 in any combination of units and flow-through shares exercisable up to 48 hours prior to closing to cover over-allotments, if any.

Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.70 per share, for a period of twenty-four months following the date of closing. However, if over a period of 20 consecutive trading days between the date that is 4 months following the closing date and the expiry of the warrant, the daily volume weighted average trading price of the common shares on the TSXV or such other stock exchange where the majority of the trading volume occurs, exceeds $1.40 on each of those 20 consecutive days, the Company may, within 60 days of such an occurrence, give written notice to the holders of the warrants that the warrants will expire at 4:00 p.m. (Toronto time) on the 30th day following the giving of notice unless exercised by the holders prior to such date.

The proceeds of this offering will be used to advance the Company's Ontario projects and for general working capital purposes.

Terms of the financing are subject to acceptance by the TSX Venture Exchange.

About Manitou Gold

Manitou Gold Inc. is a well-funded gold exploration company focused with a dominant land position in the Gold Rock Mining Camp, located in the Kenora Mining District, in Northwestern Ontario. The Company's largest individual shareholder is Goldcorp Inc, who holds a 15% 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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