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Exall Announces $10,400,000 Private Placement Financings.

TORONTO -- Exall Resources Limited (TSX:EXL)(OTCBB:EXALF) is pleased to announce that it intends to raise gross proceeds of up to $8,400,000 by way of a brokered private placement. The private placement will consist of up to 1,500,000 "flow-through" common shares of Exall (the "Flow-Through Shares") offered on a best efforts basis at a price of $2.10 per Flow-Through Share and 3,000,000 units (that are not flow-through) of Exall (the "Units") offered on a best efforts basis at a price of $1.75 per Unit. Each Unit will consist of one common share of Exall and one-half of one share purchase warrant. Each whole share purchase warrant may be exercised to acquire one common share of Exall at a price of $2.25 for a period of 12 months, provided that if after four months and one day following the closing of the private placement, the closing price of the common shares of Exall on the principal market in Canada on which such shares trade is equal to or exceeds $3.00 for 20 consecutive trading days, then Exall may accelerate the expiry date of the share purchase warrants by giving notice to the holders thereof and in such case the share purchase warrants will expire on the 30th day after the date on which such notice is given by Exall.

Dundee Securities Corporation and Dominick & Dominick Securities Inc. have agreed to act as agents in connection with the brokered private placement, pursuant to which they will receive a cash commission of 6% of the gross proceeds raised from the brokered private placement.

In addition, Exall has agreed to a $2,000,000 non-brokered private placement, the terms of which are consistent with those of the Unit offering described above.

Exall intends to use the gross proceeds from the sale of the Flow-Through Shares for the exploration program of Exall's Gold Eagle Project and the proceeds from the sale of the Units for working capital and general corporate purposes. Completion of the financings remains subject to regulatory approval. The securities issued under the financings are subject to a four-month resale restriction in Canada. The financings are expected to close on or before March 29, 2006.

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 Exall's expectations and projections.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL; in the United States, Exall trades as EXALF on the US OTC Market (S.E.C. registration #82-3535). Exall is active in the 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, Texas and in the North Sea offshore the United Kingdom. Exall also owns 3,310,000 common shares of Southern Star Resources Inc., representing approximately 10% of their common shares outstanding.

There are 71.8 million common shares issued and outstanding of Exall.

Exall Resources Limited (TSX:EXL) (OTC Bulletin Board:EXALF)
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Publication:Business Wire
Geographic Code:1CANA
Date:Mar 16, 2006
Words:524
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