Santoy Resources Ltd.
TSX VENTURE : SAN

Santoy Resources Ltd.

March 13, 2007 10:05 ET

Santoy Closes 1st Tranche Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 13, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to announce that it has closed the first tranche of its non-brokered private placement reported in the Company's news releases dated February 26 and 28, 2006. The Company has sold 2,593,857 million Units, comprised of one common share and one half warrant, to 34 arms-length placees at a price of $1.40 per Unit for gross proceeds of $3,631,400. Each full warrant will be exercisable into one common share of the Company at an exercise price of $2.15 for a period of 18 months from the closing date. The warrants will be subject to an accelerated expiry, wherein the expiry period may be reduced, upon notice to holders and at the election of the Company, if the closing price of the shares is equal to or greater than $2.50 per share for 10 consecutive trading days. If this condition is met and the Company so elects, the exercise period will be reduced to 25 business days from the date notice is provided by the Company to the warrant holders.

This financing is subject to regulatory approval and finders' fees will be paid to accredited agents on that portion of the funds raised by third parties. The shares issued under this financing are subject to a hold period of 4 months and one day from the closing date of the offering. The funds will be applied to advance uranium exploration on the recently announced Otish Mountains acquisitions (see news release dated Jan. 9/07, Jan. 29/07, and Feb. 19/07) and general working capital.

It is anticipated that the second and final tranche of the private placement will close on or before March 23, 2007.

About Santoy Resources Ltd.

Santoy Resources Ltd. is a Canadian mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in British Columbia, Saskatchewan, Manitoba, Otish Mountains of Quebec and the Central Mineral Belt of Labrador; 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 for the adequacy or accuracy of this news release.

Contact Information

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