Scandinavian Minerals Limited

Scandinavian Minerals Limited

October 26, 2005 15:12 ET

Scandinavian Gold Announces Closing Of First Tranche Of Private Placement Of $2.85 Million

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - Scandinavian Gold Limited (TSX:SGL) today announced that it has closed the first tranche of its recently announced private placement financing pursuant to which today it issued an aggregate of 200,000 common shares at a price of $1.90 per share for gross proceeds of $380,000. This transaction was non-brokered and remains subject to final Toronto Stock Exchange approval. The closing of the second tranche of the offering amounting to 1,300,000 shares is expected to occur shortly.

The proceeds will be used to fund further development of the Company's 100%-owned Keivitsa, Finland, nickel-copper-PGE property including the pre feasibility study scheduled for completion by February 2006 and for general corporate purposes.

About Scandinavian Gold

Scandinavian Gold is a Canadian company exploring for precious and base metals in Scandinavia, with emphasis on Finland. The Company is currently developing one of Finland's largest mineral discoveries, the 100%-owned Keivitsa nickel-copper-PGE project. Scandinavian Gold believes that Finland offers excellent potential for large-scale discoveries in under-explored terrain, combined with a favourable, well-administered mining law, clear security of title and long-established political and economic stability. The Company's 11.3 million common shares trade on the Toronto Stock Exchange under the symbol SGL.

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