Unigold closes $4.5-million private placement

2006-07-11 13:57 ET – News Release

Mr. Daniel Danis reports

UNIGOLD ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED $4.5 MILLION FINANCING

Unigold Inc. has closed the non-brokered private placement of nine million units of the company at a price of 50 cents per unit for total gross proceeds of $4.5-million. Each unit consists of one common share of the company and one warrant, with each warrant entitling the holder thereof to purchase one common share at any time for a period of 12 months following the date of the closing of the private placement at a price of 75 cents.

PowerOne Capital Markets Ltd. and Kingsdale Capital Markets Inc. were collectively paid a cash commission of $170,910 and were issued 455,760 compensation warrants, with each warrant entitling the holder thereof to purchase one common share at any time for a period of 12 months following the date of the closing of the private placement at a price of 50 cents.

Shairco for Trading Industry and Contracting, the company’s major shareholder, subscribed for 3,303,000 of the nine million units sold pursuant to the private placement and thereby retained its 36.7-per-cent ownership in Unigold. The balance of the units were purchased by Sprott Asset Management Inc., Firebird Global Master Fund and Pinetree Capital Ltd.

Completion of the private placement is subject to receipt by the company of final approval from the TSX Venture Exchange. All of the securities issued in connection with the private placement, including any securities issued to PowerOne and Kingsdale, are subject to a four-month hold period.

With the closing of this private placement, the company has approximately $7.5-million in the treasury to finance its continuing exploration program in the Dominican Republic.

We seek Safe Harbor.