Telkwa Gold Corporation

Telkwa Gold Corporation

March 03, 2005 19:43 ET

Telkwa Gold Arranges Financing for Nevada Gold Property




MARCH 3, 2005 - 19:43 ET

Telkwa Gold Arranges Financing for Nevada Gold Property

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Telkwa Gold
Corporation (TSX VENTURE:TKW) is pleased to announce that it has signed
an agency agreement with First Associates Investments Inc. to act as
agent on a best efforts basis to arrange a brokered public offering to
raise up to $1,080,000 by way of a Short Form Offering Document.

Through its agent, Telkwa Gold Corporation will offer a minimum of 4.5
million units and up to a maximum of 9 million units at $0.12/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. Telkwa Gold Corporation retains the right to accelerate the
expiry of the purchase warrants if the published closing trade price of
the common shares on the TSX Venture Exchange is greater than or equal
to $0.30 for 10 consecutive trading days, in which event the holder will
be given notice that the warrants will expire 30 days following the date
of such notice.

First Associates, as agent for this offering, will be paid a commission
of 10% on the gross proceeds of the offering, plus an option to acquire
that number of common shares as is equal to 10% of the number of Units
sold at an exercise price of $0.12 per share for a period of 18 months
following the closing of the offering.

Proceeds from the offering will be used to advance exploration work on
Telkwa Gold's Warm Springs Property in Nye County Nevada, and for
property research and acquisitions, general corporate and working
capital purposes. The offering is subject to TSX Venture Exchange

Telkwa Gold Corporation's current exploration focus is Nevada where it
has two properties but it also has two legacy exploration properties
located in the British Columbia Cordillera. Telkwa maintains its website
( ) with corporate information, reports and images of
our exploration projects. Telkwa uses this website to maintain
communication with shareholders, investors and the financial community.

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.


Contact Information

    Telkwa Gold Corporation
    Michael Marchand, Ph.D., P. Geol.
    (403) 282-5105
    Telkwa Gold Corporation
    Darrell McTavish
    VP Corporate Development
    (403) 540-5200
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.