Shoreham Resources Ltd.
NEX BOARD : SMH.H

Shoreham Resources Ltd.

December 20, 2006 15:03 ET

Shoreham Completes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - Dec. 20, 2006) - David A. Bending, President & CEO of Shoreham Resources Ltd. (NEX:SMH.H) is pleased to announce the completion of the private placement financing, subject to regulatory approvals. The terms of the private placement originally announced for $450,000 were news released September 22, 2006. The private placement was over-subscribed. In order to adhere to NEX regulations, Shoreham will close the private placement at the $500,000 maximum currently allowed.

Shoreham has accepted private placement subscriptions for $500,000. The financing consists of shares at $0.15 with a full warrant exercisable at $0.25 for twelve months and exercisable for an additional twelve months at $0.35 subject to regulatory approval and listing on the TSX Venture Exchange. The current 20,455,053 common shares issued and outstanding will increase to 23,976,653 representing an increase of 3,521,600 including finder's fees of 188,267 common shares to be issued subject to regulatory approval. The current 1,666,666 warrants exercisable until January 16, 2007 at $0.25 will increase by the 3,333,333 warrants as described above. The 663,892 shares for debt settlement warrants issued last year exercisable at $0.25 until December 20, 2006 have expired. There are currently no stock options granted under Shoreham's stock option plan.



The private placement financing has been subscribed to by three insiders as
follows:

David Bending, P.Geo. President, CEO and Director 300,000 units
Glenn O'Gorman, P.Eng. Vice President and Director 30,000 units
David Hammond Audit Chairman and Director 50,000 units
-------------
380,000 units
equals 11.4% of
financing


The financing is expected to close the earlier of TSX Venture listing or January 16, 2007, which is one year from our previous NEX approved private placement financing.

Shoreham is also pleased to announce that the initial $25,000 cash and 125,000 common shares of Escape Group Inc. (NEX:EGT.H) due on the Bearskin Lake Property Option according to the terms as news released March 30, 2006 have been received. Escape is required to pay an additional $25,000 by January 31, 2008, issue 375,000 additional common shares to Shoreham by January 31, 2009, and spend $1,000,000 by January 31, 2010 to earn a 60% interest. The spending requirements include expenditures of $100,000 prior to January 31, 2008.

Shoreham is a resource company advancing through exploration properties of merit with which to build shareholder value. The Company will use the proceeds of this financing for corporate working capital requirements and to demonstrate compliance with the cash requirements for a TSX Venture listing. The company has received an independent listing property of merit report prepared under National Instrument 43-101 guidelines on its Favourable Lake Silver Moly Property in the Red Lake Mining District of Ontario to be used for the TSX Venture listing application.

Shoreham Resources Ltd. is located at 350 Wellington Street West, Suite G-19, Toronto, Ontario M5V 3W9

The TSX Venture Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Shoreham Resources Ltd.
    David C. Hammond
    Director
    (416) 867-1101
    (416) 867-1222 (FAX)
    Email: shoreham@bellnet.ca