Sur American Gold Corporation

Sur American Gold Corporation

August 05, 2005 11:25 ET

Sur American Gold Corporation: $2.5 Million Financing Fully Subscribed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 5, 2005) - Sur American Gold Corporation (TSX VENTURE:SUR) announces that further to its announcement on August 3, 2005 that it intends to complete a private placement of up to 6.25 million units at a price of $0.40 per unit for gross proceeds of up to $Can 2,500,000 the issue was fully subscribed and no further subscriptions are being accepted.

Each unit in the placement will be comprised of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of $0.55 for a period of 12 months after the closing and $0.75 between 12 and 24 months after the closing.

The private placement is subject to approval by the TSX Venture Exchange.

The proceeds of the private placement will be used for financing exploration and development on the Company's Philippine mineral projects including a 12,000 metre initial drilling program at its Batoto gold-silver-copper porphyry project and construction of its first commercial CIP gold plant.

Upon receipt of regulatory approval for the financing the Company will have approximately $Can 3,600,000 in working capital.

Sur American Gold Corporation is a junior exploration Company that is focused on the exploration and development of the Comval and T'Boli projects in Mindanao, Philippines. The Company trades on the TSX Venture Exchange (Canada) with trading symbol SUR-V.

On behalf of the board of directors

J. Rennie Blair, President

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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