Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

August 11, 2008 09:30 ET

Oro Gold Completes Non-Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2008) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) has completed a second closing of a previously announced non-brokered private placement for an additional 395,000 units at a price of $0.55 per unit. The total financing was 3,280,444 units at a price of $0.55 per unit for gross proceeds of $1.8 million.

Each unit consists of one common share and one-half of one common share purchase warrant, each whole warrant entitling the holder to purchase one additional common share of Oro Gold at a price of $0.75 per share for the first year and $1.00 per share for the second year after the date of issuance. The securities are subject to a four-month hold period (which expires December 9, 2008 in respect of the securities issued in the second closing).

No finder's fees were paid in connection with the subscriptions under the second closing of the private placement.

Robert Kendrick and Frank Powell, directors and/or officers of Oro Gold, each acquired 10,000 units as subscribers under the second closing of the private placement and, accordingly, insiders have increased their security holdings in Oro Gold. No commission or finder's fee was paid for such participation.

Oro Gold intends to use the proceeds of the private placement to complete additional drilling at its 100%-owned flagship Trinidad property located in Sinaloa, Mexico, and for other corporate purposes and general working capital. Oro Gold is planning to complete over 20,000 metres of drilling on its properties in the Rosario Gold belt by the end of 2008, and plans to further define and expand its current gold resource base of 200,930 ounces (4,491,800 tonnes at an average gold grade of 1.4 g/t, at a 0.5 g/t gold cut-off, as reported in Oro Gold's May 29, 2008 press release).

About Oro Gold

Oro Gold is a gold exploration company with 12 properties located in Mexico and Panama, with 5 of the properties optioned to joint venture partners. The district-scale Trinidad property continues to be the company's top priority project and the main focus of exploration and resource definition efforts. Ongoing generative activity and a joint venture strategy will continue to be a fundamental part of Oro Gold's growth. Oro Gold's mission is to build shareholder value by making discoveries and developing low-cost gold resources through early and advanced stage exploration.

ON BEHALF OF THE BOARD OF DIRECTORS

Darren Bahrey, President and CEO

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, development and production activities, the completion of financings and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing and success of future exploration, development and production activities, the timing and amount of future financings and the timing and amount of expenditures.

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

Contact Information

  • Oro Gold Resources Ltd.
    Darren Bahrey
    President and CEO
    (604) 646-1580
    (604) 642-2411 (FAX)
    Website: www.orogoldresources.com