Reunion Gold Corporation

Reunion Gold Corporation

July 13, 2010 08:00 ET

Reunion Gold Repays Convertible Loan

LONGUEUIL, QUEBEC--(Marketwire - July 13, 2010) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") announces that it has repaid a US$250,000 principal convertible loan made in August 2009 (please see news release dated August 18, 2009) plus all accrued interest, through the issuance of 2,865,287 of its common shares.

The loan was made to Reunion by a company controlled by two directors of Reunion to provide the Company with interim working capital while it sought longer-term financing for its activities. The loan, which was approved by the independent directors of the Company and accepted by the TSX Venture Exchange ("TSXV"), was unsecured and accrued interest at 15% per annum until the time of repayment. Under a non-brokered private placement financing completed in May and June 2010, the Company raised $5,250,000 and gave notice to the lender to repay the loan. Under the terms of the loan agreement, the lender exercised its option to have the principal and interest repaid in common shares of the Company. The shares were issued at a deemed price per share of $0.10, based upon the volume-weighted average price of the Reunion common shares over the five days prior to the date of notice to repay, as provided under the loan agreement.

The listing of these shares was accepted by the TSXV on July 7, 2010. Under applicable Canadian securities laws, the shares issued to repay the loan are subject to a hold period expiring November 10, 2010.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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