Sunridge Gold Corp.
TSX VENTURE : SGC

Sunridge Gold Corp.

October 05, 2005 08:00 ET

Sunridge Gold Closes Private Placement Financing; Arranges Delivery of a Second Drill for Asmara Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 5, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sunridge Gold Corp. (TSX VENTURE:SGC) has closed a non-brokered private placement of 6,040,000 units at a price of $0.65 per unit for gross proceeds of $3,926,000. Each unit consists of one common share and one-half of one non-transferable common share purchase warrant, with each whole warrant entitling the subscriber to purchase one additional common share in the capital of the Company at a price of $0.90 for a period of two years from closing of the private placement, subject to earlier trigger provisions (see NR2005-12). The Company issued 25,000 units as finders' fees in connection with this placement. The common shares issued, and any common shares issued pursuant to the exercise of share purchase warrants prior to February 5, 2006 are restricted from trading until February 5, 2006.

Management has contracted a second diamond drill rig which is scheduled to commence drilling by the end of October 2005. This new contract is for an additional 5,000 metres of diamond drilling which would, with the other drill contract, total approximately 15,000 metres of drilling for the current program. The two diamond drill rigs will continue drilling the high-grade zinc-gold-copper-silver Adi Nefas Deposit. The results of both geochemical and geophysical surveys show the Adi Nefas anomaly extending about one kilometre to the north and one kilometre to the south of the present drilling where the Adi Nefas mineralization has been drilled over approximately 300 metres of strike length. Management is negotiating to contract a third drill rig for the Asmara Project.

Proceeds of this private placement will be used, together with funds on hand, for continued development and exploration drilling at the Asmara Project, Eritrea and for general working capital.

The common shares and warrants and any securities which may be issued thereunder have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person in the absence of such registration or an exemption therefrom.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

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

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