Tagish Lake Gold Corp.
TSX VENTURE : TLG

Tagish Lake Gold Corp.

September 08, 2005 15:15 ET

Tagish Lake Gold Corp.: Non-Brokered Private Placement Convertible Silver Debentures

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - Tagish Lake Gold Corp. (TSX VENTURE:TLG) ("the Company") announces that it is undertaking a non-brokered private placement of a minimum of C$1,500,000 and a maximum of C$7,500,000 of unsecured, interest bearing, redeemable, convertible debentures. The debentures will mature on October 31, 2010, and permit the holders to elect to take repayment of the principal amount at maturity either in cash or in the cash equivalent of 120 ounces of silver bullion per C$1,000 principal amount of Debentures, the amount based on the daily silver price for an ounce of silver in United States dollars on the London Bullion Market converted to Canadian dollars based on the Bank of Canada daily noon spot exchange rate on the maturity date. The debentures are represented by silver in the Skukum Creek deposit.

Interest will be payable semi-annually on April 30 and October 31 of each year in cash based on 7.5 ounces of silver per C$1,000 principal amount of debentures multiplied by the price of silver on the Payment Date calculated in a similar manner as described above.

The Debentures will be redeemable, pro rata, in whole or in part at the option of the Company at any time after October 31, 2006 and prior to maturity at the greater of principal amount or in the equivalent market value of silver bullion notionally represented by each Debenture, based on 120 ounces of silver per C$1,000 principal amount of Debentures multiplied by the price of silver on the redemption date calculated in a similar manner as described above. Accrued and unpaid interest will be paid in cash upon redemption, adjusted proportionately for any accrual period less than six months.

After October 31, 2006 but prior to redemption or maturity, either the Company may elect to convert pro rata, or the holder may elect to convert in whole or in part the principal amount represented by the debenture into common shares at the weighted average trading price for the ten days preceding the fifth day prior to the specified date of conversion. Accrued and unpaid interest will be paid in cash upon conversion, adjusted proportionately for any accrual period less than six months.

The net proceeds of this Issue will be used to fund the program leading to production from the Skukum Creek deposit on the Company's Skukum Property, located in the Yukon, and for general corporate expenses. The initial work on the Skukum Creek deposit will include extension of the underground workings on the 1300m level to the Ridge Zone, followed by diamond drilling of the Rainbow Two, Ridge and Kuhn zones. From the recent drilling, the Rainbow Two Zone is shaping up into a significant high-grade zone, and additional work is warranted to expand the resource at Skukum Creek.

The offering is being made on a private placement basis pursuant to prospectus exemptions from the applicable securities laws to eligible persons resident in certain qualified jurisdictions in Canada who have received a copy of the Company's Offering Memorandum, or who are directors, officers or control persons of Tagish or who otherwise satisfy the definition of "accredited investors" under applicable securities laws in their jurisdiction. The offering is subject to regulatory and TSX Venture approval. The Debentures will be subject to a four month hold period in accordance with TSX Venture Exchange policy and applicable securities laws.

A finder's fee arrangement may be negotiated with registrants or other eligible persons, subject to TSX Venture guidelines, on the applicable proceeds, and paid on closing.

A copy of the Offering Memorandum and the Subscription Agreement are available from the Company at the contact name and address below.

About Tagish Lake Gold Corp.

Tagish Lake Gold Corp. is focused on exploration and development of high grade gold-silver mineral deposits in the Yukon territory of Canada, in particular in the Skukum Mineral District (covering 178 km2) that is owned by Tagish. The Skukum Mineral District, located 80 km by road south of Whitehorse, hosts the Skukum Creek gold-silver deposit, and the Goddell Gully and Mt. Skukum gold deposits.

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

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