Reunion Gold Corporation

Reunion Gold Corporation

October 19, 2007 16:44 ET

Reunion Gold Corporation Seeks Approval to Accelerate Warrant Exercise


Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Corporation") is pleased to announce that it is making an application to the TSX Venture Exchange (the "Exchange") for approval of an incentive program to encourage the early exercise of warrants issued in 2004 (the "2004 Warrants"). This incentive offer is applicable to 14,913,500 2004 Warrants, which can be exercised at a price of $1.25 per share for aggregate gross proceeds of $18,641,875. The proceeds from the early exercise of the 2004 Warrants will be used to fund exploration expenditures and for general working capital purposes.

Early Warrant Exercise

The 2004 Warrants were issued as part of a private placement completed in January and February of 2004 and expire on January 7 or February 12, 2009, as applicable. In order to encourage the early exercise of the 2004 Warrants, the Corporation will be seeking to amend the terms of the 2004 Warrants such that each warrant holder who exercises its 2004 Warrants during the 30-day incentive program shall receive one unit (in lieu of one common share) consisting of one common share and one half of one warrant (each whole warrant, a "2007 Warrant"). Each 2007 Warrant shall allow the holder to acquire one common share of the capital of the Corporation at an exercise price of $1.50 for a period of 24 months following the date of the issuance of the units. The 2007 Warrants will be subject to a four-month hold period. If a holder of the 2004 Warrants does not exercise the amended 2004 Warrants by the end of the 30-day period, the amended 2004 Warrants shall continue to be exercisable for common shares of the Corporation on their original terms. The incentive program is subject to approval by two-thirds of the holders of the 2004 Warrants and the approval of the Exchange.

Dundee Securities Corporation has agreed to assist in soliciting the exercise of the 2004 Warrants and shall receive a fee equal to 1% of the proceeds received from the early exercise of the 2004 Warrants as a result of the incentive program.

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Corporation's control, including statements regarding future plans and objectives of the Corporation, completion of transactions, raising sufficient financing to fund the planned work in a timely manner and on acceptable terms, changes in planned work resulting from weather, logistical, technical or other factors; potential mineralization and resources. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements.

Additional information about the Corporation is available through regular filings and press releases on SEDAR ( and on the Corporation's website (

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

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