SOURCE: Spartan Gold Ltd.

January 28, 2011 13:00 ET

Spartan Gold Ltd. Secures Financing Commitment for up to $5,000,000 USD From Geneva, Switzerland Based Institutional Investor

Company Received Initial $500,000 USD Upon Signing the Financing Agreement

SCOTTSDALE, AZ--(Marketwire - January 28, 2011) - Spartan Gold Ltd. ("Spartan Gold") (OTCBB: SPAG), a diversified U.S. based junior gold exploration company, has today announced the execution of a $5,000,000 USD financing commitment agreement with Geneva, Switzerland based Knightstown Business Ltd.("Knightstown"). The Company has already received the first tranche of $500,000 USD from Knightstown, in the form of a restricted (rule 144) equity private placement at a price of $0.60 per share. Under terms of the agreement, Knightstown has committed to an additional $4,500,000 USD over the next 6 months for a total of $5,000,000 USD. This additional funding is subject to an additional definitive agreement and the acceptance of future use of proceeds by the management team. The Company intends to immediately commence work programs on all three of its gold prospects: Arbacoochee, Alabama, "Poker Flats" (Carlin Trend, Nevada), and "Ziggurat" (Northumberland Trend, Nevada).

Malcolm Stevens, CEO Spartan Gold, commented "We are very pleased to have secured a substantial financing commitment and an immediate $500,000 USD at terms that greatly limit share dilution. The initial funding enables the Company to begin full mining exploration activities on its recently acquired gold prospects in both Alabama and Nevada. The Company will update shareholders when meaningful data is acquired concerning the potential gold resources within the Alabama and Nevada concessions."

Mr. Rainer Buchecker of Knightstown stated, "After completing a stringent period of due diligence, we are pleased to have signed a financing agreement with Spartan Gold Ltd. We have great confidence that Spartan's management team will successfully monetize its three properties."

About Spartan Gold Ltd:

Spartan Gold Ltd. (OTCBB: SPAG) is a publicly traded U.S. based junior gold exploration and mining company with gold exploration and development activity centered in both the Carlin-Rain and Round Mountain-Northumberland Gold Trends in Nevada. The Carlin region is the location of the Spartan Gold prospect known as Poker Flats and Round Mountain, and Northumberland Mining Districts of Nevada are home to the Ziggurat project. Each of these regions is endowed with major gold deposits operated by many of the world leaders in the mining industry. Major mining projects in the Carlin Trend are currently operated by Barrick Gold Corporation (trading on the NYSE and the TSX) and Newmont Mining Corporation (trading on the NYSE) which exist both north and south of the Poker Flats prospects respectively. Additionally, some of the major mining projects in the Round Mountain-Northumberland districts are currently operated by Barrick Gold Corporation and Fronteer Gold (trading on the ASE) which exist in close proximity to the Ziggurat prospect. The company also has mining interests in the northeast region of Alabama in the historical Arbacoochee Mining District. The company is currently pursuing opportunities for several acquisition targets around the world and focusing on operational plans for current projects. The directors, management and advisers of Spartan Gold have over 90 years of combined experience in the exploration and development of global mining projects.

Spartan's commitment to asset growth and increased shareholder value will be sustained by the development of highly prospective projects, accelerated exploration activities and the acquisition of viable resources. Spartan has selected an international board of directors experienced in undertaking exploration, development and funding of numerous energy and minerals projects around the world.

About Knightstown Business Ltd.

Knightstown Business Ltd. is a private venture capital fund and business angel investor with a focus on start up and/or junior enterprises. Knightstown Business Ltd. also has a private equity arm investing in more mature mining and exploration projects with a focus on precious and base metals. The fund also has invested in many real estate projects around the world most specifically in South Africa, Asia, United States and Japan.

Forward-Looking Statements: Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on Spartan Gold Ltd. predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, changes in metal prices, the ability to successfully fund any exploration activities, consumer and business consumption habits, the ability to fund operations and other factors over which Spartan Gold Ltd. has little or no control. Such forward-looking statements are made only as of the date of this release, and Spartan Gold Ltd. assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in Spartan Gold Ltd. Form 10-K for its fiscal year ended December 31, and other documents filed from time to time by Spartan Gold Ltd. with the Securities and Exchange Commission.

Contact Information

  • For more information:

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    Spartan Gold Ltd.
    Investor Relations:
    Mr. Seth Shaw
    Tel: +1-917-796-9926
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