Yorbeau Resources Inc.

Yorbeau Resources Inc.

December 01, 2010 14:11 ET

Yorbeau Announces Proposed Financing

MONTREAL, QUEBEC--(Marketwire - Dec. 1, 2010) - Yorbeau Resources Inc. (the "Company") (TSX:YRB.A) announces that it proposes to issue, on a private placement basis, up to 15,800,000 units at $0.21 per unit for gross proceeds of up to $3,318,000. Each unit will consist of one common share of the Company (a "Common Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.35 for a period of 18 months after the closing of the private placement, provided that if the closing price of the Common Shares on the Toronto Stock Exchange is equal to or greater than $0.45 for 20 consecutive trading days, the Company will be entitled to accelerate the expiry date of the Warrants to a date ending 30 days from the date notice of such acceleration is given to the warrantholders.

The Company has agreed to pay a finder's fee on certain subscriptions equal to 8% of the gross proceeds raised and warrants ("Finder's Warrants") equal to 8% of the units sold. Each Finder's Warrant will be exercisable for one Common Share at a price of $0.35 per share and will expire 18 months following closing, subject to the same terms as the Warrants with respect to the acceleration of the expiry date.

Completion of the private placement is subject to receipt of all necessary regulatory approvals.

The proceeds of the financing will be used to fund an exploration drilling program on the Rouyn property, to prepare a NI 43-101 resource calculation for the Augmitto deposit and for general corporate expenses.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state or territory in which such offer, solicitation or sale would be unlawful.

About Yorbeau Resources Inc.

The raison d'être of Yorbeau is to identify a world class gold deposit in a major mining camp. Against the backdrop of a market that is steadily more welcoming for gold, Yorbeau is poised to significantly increase the known gold resources on its properties in Northern Quebec.

Forward-looking statements: Except for statement of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

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