YOUNG-SHANNON GOLD MINES, LIMITED
TSX VENTURE : GYS

YOUNG-SHANNON GOLD MINES, LIMITED

October 12, 2006 13:41 ET

Young-Shannon Gold Mines Limited Closes Non-Brokered Private Placement of $613,250.00

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES

Young-Shannon Gold Mines, Limited ("Young-Shannon") (TSX VENTURE:GYS) is pleased to announce that the Company has closed a non-brokered private placement of 5,575,000 units at a price of $0.11 per unit for gross proceeds of $613,250.00. Each unit consists of one common share of Young-Shannon and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to purchase one common share of Young-Shannon at a price of $0.15 per share for a period of eighteen months following the closing date of the private placement.

All securities issued in connection with the private placement are subject to a four month plus one day statutory hold period.

A 5% finder's fee comprising 158,750 common shares of Young-Shannon was paid to Triology Capital Limited and a 5% finder's fee comprising of 87,500 common shares of Young-Shannon was paid to VC Group Investments, S.A. A 5% cash commission was paid to Brant Securities Limited in the amount of $1,375 and to Haywood Securities Inc. in the amount of $2,200.

Proceeds of the financing will be used to fund geophysics and drilling exploration on its McMillan Gold Mine property near Espanola, Ontario, as well as to evaluate additional property submissions currently before the Company. Young-Shannon anticipates that it will close a second tranche of this private placement in the approximate amount of $55,000 to be closed within the next seven business days.

Further details may be obtained from our website: www.youngshannon.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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