Telkwa Gold Corporation
TSX VENTURE : TKW

Telkwa Gold Corporation

April 05, 2006 15:44 ET

Telkwa Arranges Financing

CALGARY, ALBERTA--(CCNMatthews - April 5, 2006) - Telkwa Gold Corporation (TSX VENTURE:TKW) is pleased to announce that it has signed an agency agreement with Blackmont Capital Inc. to act as agent on a best efforts basis to arrange a brokered public offering to raise up to $1,000,000 by way of a Short Form Offering Document.

Through its agent, Telkwa Gold Corporation will offer a minimum of 5.0 million units and up to a maximum of 10 million units at $0.10/unit to purchasers in British Columbia and Alberta. Each unit will consist of one common share and one half of one non-transferable share purchase warrant. Each full warrant will entitle the holder to acquire one additional common share for a period of one year at a price of $0.20 per share.

Blackmont, as agent for this offering, will be paid a cash commission of 10% on the gross proceeds of the offering, plus an option to acquire that number of common shares as is equal to 15% of the number of Units sold at an exercise price of $0.10 per share for a period of 24 months following the closing of the offering.

Proceeds from the offering will be used to advance exploration work on Telkwa Gold's Buckskin North and Warm Springs Properties in Nevada, and for property research and acquisitions, general corporate and working capital purposes. The Company's AIF and a 43-101 compliant Geological report on the Buckskin North project have recently been filed on Sedar (www.sedar.com). The offering is subject to TSX Venture Exchange acceptance.

Telkwa Gold Corporation's current exploration focus is Nevada where it has three properties but it also has two exploration properties located in the British Columbia Cordillera. Telkwa maintains its website (www.telkwagold.com) with corporate information, reports and images of our exploration projects.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

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