Tyhee Gold Corp.
TSX VENTURE : TDC

Tyhee Gold Corp.

April 02, 2012 18:28 ET

Tyhee Announces Non-Brokered Private Palcement and Update on Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2012) - Tyhee Gold Corp. (TSX VENTURE:TDC) (the "Company") announces that the Company, Euro Pacific Canada Inc. and Byron Capital Markets Ltd. have mutually agreed to terminate the brokered private placement of announced December 16, 2011. A total of 31,240,614 units were placed to purchasers on the President's list.

The Company is pleased to announce that it will be proceeding with a non-brokered private placement of up to 72,222,222 units (the "Units") at $0.09 per Unit, and has received subscriptions for approximately 10.2 million units for proceeds on the initial closing of approximately $920,000. Each Unit is comprised of one common share of the Company and one transferable common share purchase warrant of the Company (the "Warrants"). Each Warrant will entitle the holder to purchase a further common share in the Company (the "Warrant Shares") at a price of $0.125 per Warrant Share within 24 months of closing. On the first closing of the non-brokered private placement the Company will issue warrants to purchase 333,360 common shares, exercisable at a price of $0.11 per share for a period of 24 months, to Euro Pacific Canada Inc., as a finder's fee. All securities sold in the private placement will be subject to a 4-month hold period from closing. The non-brokered private placement is subject to the approval of the TSX Venture Exchange.

The funds will be used to advance its Yellowknife Gold Project, an advanced stage wholly-owned gold project in the feasibility study and permitting stage, as well as for general corporate purposes. A feasibility study, lead by SRK Consulting, is underway and expected to be completed by mid-2012. It will build on the positive Preliminary Feasibility Study completed in July 2010, which recommended operating at 3,000 tonnes per day. The feasibility study will also consider an expanded resource as well as other updated inputs, including a more current gold price.

All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, including statements regarding the initial closing of the non-brokered financing, the proposed use of funds, and the expected timing of completion of the feasibility study on the Yellowknife Gold Project, are "forward-looking statements". Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Factors that may cause actual results to vary from those made in the forward looking statements described in this document include: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; delays in obtaining approvals, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delays in completion of work necessary to complete the feasibility study, whether as a result of adverse weather conditions, contract or labour disputes, equipment failure, or response to regulatory enquiries in respect of permit applications; technological and operational difficulties encountered in connection with the activities of the company. This list is not exhaustive of the factors that may affect the forward looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the companies' forward-looking information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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