Pure Gold Minerals Inc.

Pure Gold Minerals Inc.

March 17, 2005 12:47 ET

Pure Gold Minerals Inc.: $1.2 Million Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PURE GOLD MINERALS INC.

TSX SYMBOL: PUG

MARCH 17, 2005 - 12:47 ET

Pure Gold Minerals Inc.: $1.2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 17, 2005) - Pure Gold
Minerals Inc. (TSX:PUG)

Donald R. Sheldon, President of Pure Gold Minerals Inc. (the "Company"),
is pleased to announce that, subject to regulatory acceptance, it has
arranged a brokered private placement through Dundee Securities
Corporation (the "Agent") of up to 15,000,000 flow-through shares at a
price of $0.08 per flow-through share.

The Agent will receive a fee equal to 8% of the total gross proceeds
raised payable as to 4% in cash and 4% in common shares of the Company.
In addition, the Agent will receive a compensation warrant
("Compensation Warrant") equal in number to 8% of the number of
flow-through shares sold under the Offering. Each Compensation Warrant
will be exercisable at a price of $0.08 per common share for twelve (12)
months from the closing date.

The Offering is subject to a number of conditions including the
execution of formal documentation and receipt of the applicable
regulatory approvals.

The proceeds from this Offering will be used for further exploration on
the Company's properties in Alberta, Nunavut and the Northwest
Territories, and for exploratory work on additional properties that the
Company is in the process of reviewing.

Conducting this private placement in conjunction with the Company's
Rights Offering gives the Company additional exploration funds necessary
to complete the required work programs on its existing properties and in
turn allows the Company to evaluate, acquire and explore new properties.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pure Gold Minerals Inc.
    Donald R. Sheldon
    President
    (604) 687-2038
    (604) 687-3141 (FAX)
    www.puregold.ca