Santoy Resources Ltd.
TSX VENTURE : SAN

Santoy Resources Ltd.

August 24, 2005 09:00 ET

Santoy Announces $1.5 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2005) - Santoy Resources Ltd. (TSX VENTURE:SAN) announces that it has proposed a $1.5 million non-brokered Private Placement consisting of a $1.0 million issuance of Flow Through Units and a $500,000 issuance of Non-Flow Through Units. Each Flow Through Unit will comprise one common share at $0.45 per share, and each Non-Flow Through Unit will comprise one common share at $0.40 and one half of one share purchase warrant exercisable at $0.55 per share in year one and at $0.65 per share in year two. The warrants will have an accelerator clause wherein the remaining exercise period may be reduced, upon notice and at the election of the Company, to 30 days if the shares trade at or greater than $0.75 per share for twenty consecutive trading days. The Offering, to be undertaken on a best efforts basis by the Company, will be sold in Alberta, British Columbia and Saskatchewan. Finders fees may be payable on that portion of the funds raised by accredited third parties. The financing is subject to regulatory approval.

The proceeds of this Private Placement will be used to advance Santoy's uranium projects located in British Columbia, Saskatchewan, Manitoba and in the Central Mineral Belt of Labrador; to advance Santoy's coal and coalbed methane projects located in Western Canada; and for general working purposes.

About Santoy Resources Ltd.

Santoy Resources Ltd. is a mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in Saskatchewan, Manitoba, CMB of Labrador, the United States and Central America; and on coal and coal bed methane in Western Canada. A description of our properties, including maps and photographs, can be viewed on the Company's website at www.santoy.ca.

On Behalf of the Board of Directors

SANTOY RESOURCES LTD.

Ron Netolitzky, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.


The TSX Venture Exchange has not reviewed and does not accept responsibility fro the adequacy or accuracy of this news release.

Contact Information

  • Santoy Resources Ltd.
    Ron Netolitzky
    President
    (604) 669-4799
    or
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    (604) 669-2543 (FAX)
    www.santoy.ca