TORONTO, ONTARIO--(CCNMatthews - Sept. 1, 2005) - Exall Resources Limited ("Exall" or the "Corporation")(TSX:EXL) announced today that it has engaged Dundee Securities Corporation and Dominick and Dominick Securities Inc. ("The Agents") to raise $4,000,000 by way of a private placement. The financing, done on a guaranteed agency basis, consists of flow-through common shares of the Corporation ("Flow-Through Common Shares") and units of the Corporation ("Units"), with each Unit being comprised of one common share of the Corporation and one-half warrant ("Warrant") with each Warrant being exerciseable for one common share of the Corporation at an exercise price of $0.50 per share for a period of 12 months after the Closing Date (the "Offering"). The Agents will be paid a fee of 6% of the total proceeds raised and 6% non-transferable Broker Warrants, exercisable for common shares of Exall for a period of 12 months following the Closing Date, at a price of $0.50 for 12 months following the Closing Date. The securities issued under the private placement are subject to a four-month resale restriction and the entire placement is subject to final Toronto Stock Exchange approval. Closing is scheduled to occur on or about September 13, 2005.
The gross proceeds from the private placement will be applied to finance the drilling program at the Gold Eagle Mine Property in Red Lake, Ontario (See Press Release dated August 29, 2005) and/or development activities and to provide general working capital.
About Dundee Securities Corporation
Dundee Securities Corporation is a full service investment dealer engaged in wealth management & financial advisory services, retail brokerage, institutional sales & trading, equity research and investment banking. Dundee Securities Corporation is a member of the Investment Dealers Association of Canada and CIPF.
Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in its business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas.
There are currently 56.9 million common shares issued and outstanding.
FORWARD LOOKING STATEMENTS:
The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
FOR FURTHER INFORMATION PLEASE CONTACT:
Exall Resources Limited
Stephen G. Roman
Chairman, President and CEO
(416) 368-5146 (FAX)