Walloper Gold Resources Ltd.

Walloper Gold Resources Ltd.

March 04, 2005 09:30 ET

Walloper Closes $5M Private Placement and Completes Merger with East Asia Minerals


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WALLOPER GOLD RESOURCES LTD.

TSX VENTURE SYMBOL: WGL

MARCH 4, 2005 - 09:30 ET

Walloper Closes $5M Private Placement and Completes
Merger with East Asia Minerals

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Walloper
Gold Resources Ltd. (TSX VENTURE:WGL)

NOT FOR DISSEMINATION VIA US NEWSWIRE SERVICES

Walloper Gold Resources Ltd. (the "Company") is pleased to announce the
completion of the private placement previously announced on August 4,
2004. Pacific International Securities Inc. (the "Agent") sold a total
of 11,249,444 units (the "Units") at a price of $0.45 per Unit for gross
proceeds of $5,062,249.80. Each Unit consists of one common share and
one half of one common share purchase warrant. Each whole warrant will
be exercisable into one common share for two years from the date of
closing at a price of $0.75 per share for the first year and $1.00 per
share for the second year.

The Company paid a 7% commission from the gross proceeds of the
Offering, consisting of cash and 407,276 Units. The corporate finance
fee of the Agent was, in part, paid with 13,333 Units. In addition, the
Agent was granted 1,343,933 compensation options which will entitle the
Agent to purchase, at an exercise price equal to $0.50, one common share
and one half of one non-transferable common share purchase warrant. Each
whole warrant will be exercisable into one common share for two years
from the date of closing at a price of $0.80 per share for the first
year and $1.05 per share for the second year.

The Company has also received regulatory approval for the share purchase
agreement dated February 16, 2005 between the Company and East Asia
Minerals Corporation ("EAM") a privately held Ontario company, for the
purchase of all of the issued and outstanding shares of EAM. Pursuant to
the share purchase agreement, EAM's shareholders sold 100% of their
shares of EAM to the Company in exchange for consideration consisting of
one of the Company's shares for each EAM share held. EAM had 7,115,678
shares issued and outstanding. As a result of the share exchange EAM
shall become a wholly owned subsidiary of the Company. The shares of the
Company issued to EAM founders totaling 3,900,000 shares, shall be
subject to a 3 year escrow schedule under the policies of the TSX
Venture Exchange.

A finder's fee of 400,000 common shares of the Company was paid to
Parolini Marketing Services Ltd.

Proceeds of the private placement will be used towards funding
exploration on EAM's four existing projects in Mongolia, acquiring
additional projects and for general corporate purposes.

Finally, pursuant to agreements dated January 28, 2005 in respect of an
aggregate principal of $360,000 loaned to the Company, the Company has
issued as a bonus to the lenders under such agreements an aggregate of
129,167 common shares at a deemed price of $0.48 per common share and
20,000 common shares at a deemed price of $0.50 per common share.

All of the common shares issued on the completion of the foregoing
transactions and any common shares issuable upon the exercise of any of
the convertible securities shall be subject to a hold period expiring
July 4, 2005.

New Management

The Board has accepted the resignation of Darren Pylot as interim
President of the Company. Lyndon Bradish will be the new President and
CEO of the Company. Mr. Bradish was the managing director of Noranda
Pacific Ltd. (Australia) and Noranda Asia Ltd. (Hong Kong). Mr. Bradish
is currently the President and director of Manila Mining Corporation,
and a director of Lepanto Mining Co. Mr. Pylot will remain a director
and Chairman of the Board.

Dr. (Antony) Tony Page will be the Vice President Exploration. Dr. Page
was the past manager of RTZ Russia and has over 10 years of work
experience in China. Dr. Page will be replacing Jack Marr who will
remain a director of the Company.

Edward Van Ginkel will be the Corporate Secretary (Legal Counsel). Mr.
Van Ginkel was the past Vice President International Projects and Vice
President General Counsel for Noranda Inc.

John Gingerich will remain the Chief Financial Officer of the Company's
wholly owned subsidiary East Asia Minerals Corp. Mr. Gingrich was the
past Director of Research and Technical Innovation for Noranda.

Current Projects

Khok Adar Copper-Gold Project

The Khok Adar project is a copper-silver-zinc system that has been
overprinted by several phases of epithermal alteration/mineralization.
EAM has an option to acquire a 75% interest in the Khok Adar project,
located in Bayan Olgii Province of Mongolia. EAM must fund US$1,000,000
in exploration expenditures over 3 years from the anniversary date of
August 15, 2004. The minimum first year expenditures of US$150,000 have
been completed as part of a US$216,000 Phase 1 exploration program
completed in 2004-05. This program included 450 m of trenching and 1,000
m of diamond drilling (KA-04-01 to 06). Assay results for these holes
are pending. A current Phase 2 drill program is planned for the project.

Tavt Gold-Copper (porphyry) Project

EAM has an option to acquire a 100% interest, subject to a 1% NSR, in
the Tavt project located in Bulgan Aimag Province in northern Mongolia.
EAM must fund minimum first year exploration expenditures of US$500,000,
of which US$320,000 must be spent on drilling programs. EAM must also
make option payments of US$25,000 on July 15, 2004 (paid), US$25,000 on
August 15, 2004 (paid) and US$1,000,000 within 20 days from the first
year anniversary date of October 21, 2004. US$150,000 has been spent on
the project to date. The project has been shown to be a copper-gold
mesothermal vein system. There is a small interior claim on which a
small scale gold operation is in development. EAM has a right of first
offer on this claim. A 500 m shallow drill program is currently
underway. Assay results will be reported when they have been made
available to the Company.

Tsambagarav Epithermal Gold-Silver Project

EAM has an option to acquire a 75% interest in the Tsambagarav project,
located in Bayan Olgii Province of Mongolia. EAM must fund US$1,000,000
in exploration expenditures over 4 years from the anniversary date of
September 16, 2004, A minimum first year work commitment of US$200,000
is required. Approximately $50,000 has been spent on the project to
date. The Tsambagarav project is comprised of two epithermal systems.
Orientation geophysics has been completed over one of the two targets.

Yamaat Gold-Copper Project

EAM has an option to acquire a 77% interest in the Yamaat project,
located in Bayan Olgii Province of Mongolia. EAM must fund US$2,055,000
in exploration expenditures over 4 years from the anniversary date of
June 4, 2004. A minimum first year expenditure of US$245,000 is
required. US$210,000 has been spent to date on mapping, sampling and
geophysical surveying. The Yamaat project is a mesothermal turbidite
hosted gold- copper vein system.

ON BEHALF OF THE BOARD

Darren Pylot, Director

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.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Walloper Gold Resources Ltd.
    Mark Patchett
    (604) 684-2183
    (604) 688-2180 (FAX)
    mpatchett@wallopergold.com
    www.wallopergold.com
    The TSX Venture Exchange has neither approved or disapproved of the
    contents herein.