Tagish Lake Gold Corp.
TSX VENTURE : TLG

Tagish Lake Gold Corp.

July 14, 2005 13:25 ET

Tagish Lake Gold Corp.: Non-Brokered Private Placements Closed

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - July 14, 2005) - Tagish Lake Gold Corp. (TSX VENTURE:TLG) ("the Company") announces that it has closed on the private placement originally announced on May 16, 2005. The Company placed a total of 1,250,000 units priced at C$0.10 per unit with investors in BC, Ontario and offshore for gross proceeds of $125,000. An additional $190,000 for 1,900,000 units also priced at C$0.10 per unit from an offshore investor has been received, subject to the TSX Venture Exchange approval. Each unit consists of one common share and a full warrant at $0.15. These funds will be used for underground exploration of the Company's Skukum Creek deposit and for general corporate expenses.

The Company has also closed on a flow-through private placement of 1,109,091 flow-through units priced at $0.11 per unit with two investors in Ontario for gross proceeds of $122,000. Each unit consists of one flow-through common share and a full non-flow through warrant at $0.18. The proceeds raised through this distribution will be used for eligible Canadian Exploration Expenses ("CEE"), as defined in subsection 66.1(6) of the Income Tax Act (Canada), related to exploration of the Company's Skukum Creek deposit.

The Company is actively pursuing sources of financing that would be less dilutive to existing shareholders. These sources could include an income trust arrangement, or sale of a royalty on production, or issue of silver-denominated debentures and/or preferred shares.

All securities issued in this private placement will be subject to a four month hold period in accordance with TSX Venture Exchange policy and applicable securities laws.

No commissions or finders fees were paid with this placement.

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 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.

Contact Information