Otis Gold Corp.

Otis Gold Corp.

October 18, 2010 14:50 ET

Otis Announces $2,200,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - Otis Gold Corp. ("Otis" or the "Company") (TSX:OOO)(PINK SHEETS:OGLDF) is pleased to announce a non-brokered private placement of up to 4,000,000 units at a price of $0.55 per unit, for aggregate gross proceeds of up to CDN$2,200,000. Each unit will consist of one common share and one transferable common share purchase warrant (each whole such purchase warrant being a "Warrant"). Each Warrant will be exercisable to purchase one common share of the Company for 18 months, at a price of $0.80 per share.

The net proceeds from this private placement will be used for general working capital purposes. Commissions or finder's fees may be paid to qualified entities up to the rates allowed by the TSX Venture Exchange. The financing is subject to the approval of the TSX Venture Exchange.

About the Company

Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho. The Company is currently developing its flagship property, the Kilgore Gold Project, Clark County, Idaho and has several other gold, silver and base metal projects located in Idaho.


Craig T. Lindsay, President and CEO

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has neither approved nor disapproved of the contents herein.

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