Romarco Minerals Inc.
TSX VENTURE : R

Romarco Minerals Inc.

October 12, 2005 12:06 ET

Romarco Closes Private Placement with Large Shareholders of Romarco and Western Goldfields

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ROMARCO MINERALS INC. (TSX VENTURE:R) (the "Company") Romarco is pleased to announce that it has closed its previously announced private placement (see press release dated September 9, 2005) in anticipation of its planned merger with Western Goldfields, Inc. (OTCBB:WGDF). The largest shareholders of both companies have demonstrated their support of the merger by participating in the private placement.

Investors include US Global Investors, Latitude Resources PLC (LSE:LTR), and RMB Australia Holdings Limited, a member of the FirstRand Group. Latitude was the lead arranger on the private placement. Management of Romarco and Western Goldfields participated in the private placement as well.

The Company issued 22,400,263 units for gross proceeds of $3,808,045. The terms of the private placement are C$0.17 per unit with each unit consisting of one common share and one full common share purchase warrant. Each full warrant is priced at C$0.21 with a two-year term. The common shares issued pursuant to the private placement are subject to hold periods expiring no later than January 31, 2006. Current common shares outstanding after the private placement are 46,835,385.

A finder's fee of $19,712 was paid to M Partners Inc. of Toronto, Ontario and an arrangement fee of $120,000 was paid to Latitude Resources Plc of London, England in connection with this private placement.

The proceeds of the private placement will be used to fund the transaction costs associated with the merger between Romarco and Western (see press releases dated August 2, 2005 and October 3, 2005), advancement of the feasibility study at Western Goldfield's Mesquite Mine, holding costs relating to Romarco's mineral properties and drilling at its Buckskin-National Project and for general working capital purposes.

This press release is not an offer of securities for sale in the United States. The securities will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration under the U.S. Securities Act.


ON BEHALF OF ROMARCO MINERALS INC.

Diane R. Garrett, President and C.E.O.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

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