Otis Gold Corp.
TSX VENTURE : OOO

Otis Gold Corp.

May 15, 2009 17:38 ET

Otis Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2009) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO) is pleased to announce a non-brokered private placement of up to 4,000,000 units at a price of $0.25 per unit, for aggregate gross proceeds of up to CDN$1,000,000. Each unit will consist of one common share and one warrant, exercisable by the holder to acquire one additional common share at a price of $0.35 in year one and $0.55 in year two. The warrants are subject to a forced conversion which comes into effect once the shares trade above a weighted average price of $0.50 for any twenty consecutive trading-day period in year one, or $0.75 for any twenty consecutive trading-day period in year two. In the event a forced conversion, the expiry date will be the earlier of the regular two year expiry date and 30 days from the date the Company advises the placees of the forced conversion.

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 proposed financing is subject to the approval of the TSX Venture Exchange.

About the Company

Otis currently owns five precious metal projects located in Idaho and Nevada, two of which, including Kilgore, have NI 43-101 compliant resources totaling in excess of 700,000 ounces of gold.

ON BEHALF OF THE BOARD

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 or disapproved of the contents herein.

Contact Information