NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES.

Blue Gold Mining Inc. (TSX VENTURE:BGX) is pleased to announce the closing of its recently announced $20 million financing. The agents exercised their overallotment option for an additional $4.59 million, and as such, gross proceeds are $24.59 million.

Following closing of the offering, Blue Gold now has approximately $25 million in cash and short-term deposits to be used for potential future acquisitions, due diligence efforts and for general corporate purposes.

Under the offering, Blue Gold issued 24,590,000 units at a price of $1.00 per unit. Each unit consists of one common share in the capital of the company and one-half of one warrant. Each whole warrant will entitle the holder to acquire one common share at a price of $1.50 for a period of two years following the closing date. 2,500,000 of the warrants are subject to a restriction on exercise in the first 12 months following closing. The offering was conducted by a syndicate of agents led by Cormark Securities Inc. and included Axemen Resource Capital Ltd., PI Financial Corp. and Canaccord Genuity Inc.

Blue Gold is a new, emerging gold-focused exploration and development company. We are focused on building a strong leadership and management team that is technically focused and grounded in strong business fundamentals. In conjunction with the financing, Blue Gold has agreed to appoint a yet-to-be-named nominee of Goldcorp Inc. to its board of directors. Blue Gold recently announced additional board appointments at its annual general meeting in September and they include:

Mark O'Dea, Chairman and CEO: Mr. O'Dea founded and developed Fronteer Gold from a start-up in 2001 to an advanced stage gold development company which was acquired by Newmont Mining Corp. this year for $2.3 billion.
Donald McInnes as Vice-Chairman: Mr. McInnes is a natural resource entrepreneur, who most recently founded and led Plutonic Power in expending over $900 million to build the largest run of river hydro project in Canada and B.C.'s largest wind farm.
Lenard Boggio, Director: Mr. Boggio has almost 30 years of experience at PricewaterhouseCoopers LLP in Vancouver, where he is the lead partner of the Canadian Mining Practice.
Nolan Watson, Director: Mr. Watson is founder, President and CEO of Sandstorm Gold Ltd., and Sandstorm Metals and Energy Ltd.
Scott Lamacraft, Director: Mr. Lamacraft has been the CEO of Cormark Securities Inc., a Toronto-based investment dealer specializing in serving Canadian public companies, since 2001.

Blue Gold also enhanced its management team and financial oversight with the recent appointment of Sean Tetzlaff as CFO. Mr Tetzlaff most recently served as CFO of Fronteer Gold Inc. (2005-11) where he had oversight of financial, legal and contractual matters and was responsible for the successful execution of numerous equity investments, asset divestitures and M&A transactions.

This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contributing Sources

Market Wire

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Blue Gold Mining Closes $24.6 Million Financing

Blue Gold Mining Closes $24.6 Million Financing