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CLOSING OF CONVERTIBLE NOTE/WARRANT PRIVATE PLACEMENT
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April 11, 2006

The Company wishes to announce that it has completed a private placement of 9,166,667 units (“Units”) at a price of $0.06 per Unit for total net proceeds of CDN$550,000, effective as of March 30, 2006 (the “Effective Date”). Each Unit is comprised of one secured convertible note (“Convertible Note”) and one detachable share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company for a period of two years at $0.10 per share. The Convertible Notes are issued in series, each alike (except as to amount and holder) and ranking pari-passu with other Convertible Note. The outstanding principal and interst owing under the Convertible Notes will be convertible into common shares of the Company for a period of five years from the Effective Date at a price per share of $0.06 in the first and second year, $0.07 in the third year, $0.08 in the fourth year and $0.09 in the fifth and final year.

The Convertible Notes bear interest from the Effective Date at a rate of 10% per annum (calculated semi-annually in arrears) and will mature five years from the Effective Date (or on the earlier occurrence of an event of default). The Company’s obligations under the Convertible Notes are secured by a first charge over the assets of the Company.

The common shares of the Company issuable upon conversion of the Convertible Notes or upon exercise of the Warrants will be subject to a hold period expiring on July 31, 2006.

The net proceeds of the private placement will be used for work on the Company’s properties, repayment of indebtedness and gerneral working capital.

ON BEHALF OF THE BOARD OF DIRECTORS

“Charles Ross”
Secretary and Director

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