Southern Star Resources Inc.

Southern Star Resources Inc.

September 14, 2005 17:13 ET

Southern Star Announces Closing Of Flow-Through Financing

TORONTO, ONTARIO--(CCNMatthews - Sept. 14, 2005) - Southern Star Resources Inc. (TSX VENTURE:SSR) is pleased to announce that it has raised $1,400,000 pursuant to its non-brokered financing originally announced on August 31, 2005. In connection with the financing, Southern Star issued 2,800,000 flow-through units at a price of $0.50 per flow-through unit. Each flow-through unit consists of one flow-through common share of Southern Star and one-half of one flow-through share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of Southern Star at a price of $0.60 per common share for a period of twelve months from the closing date provided that if after four months following the closing date, the common shares of Southern Star close above $1.00 on the TSX Venture Exchange for 20 consecutive days, then the expiry date of the share purchase warrants shall be automatically reduced to 30 days from the date of issuance of a news release by Southern Star announcing the change to the expiry date of the share purchase warrants.

Securities issued pursuant to the financing have a 4 month hold period which expires on January 15, 2006. Completion of the financing remains subject to the final approval of the TSX Venture Exchange.

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

Contact Information

  • Southern Star Resources Inc.
    John Tait
    (416) 628-5905