Threegold Announces the Close of a $250,000 Flow-Through Financing (2010-10-20)

VAL-D'OR, QUEBEC, CANADA, Oct. 20, 2010 (Marketwire) -- Threegold Resources Inc. (TSX VENTURE:THG) is pleased to announce that it has completed the previously arranged private placement of $249,973.50.

Closing of Private Placement

According to the terms of the placement, the company successfully raised $250,000 by issuing 1,785,525 units at a price of $0.14 per unit. No warrants were issued with the shares. Management and insiders accounted for 153,525 units or $21,493.50 of the total placement. All shares are subject to a 4 month hold.

In connection with the private placement, a 8% commission on $200,000 was paid and 8% warrants were issued for a total of 114,280 shares

Second Private Placement

According to the terms of the second placement, the company plans to raise up to $235,000 by issuing 3,916,666 units at a price of $0.06 per unit. Each unit will be comprised of one (1) common share of the company and one share purchase warrant entitling the holder to purchase one additional common share of the company at a price of $0.10 for a period of one year following the closing. The warrants shall have the same early exercise trigger clause as the first financing. The closing of the placement is expected to occur within this week.

All of the proceeds from these private placements will be used for exploration work on the company's existing mining exploration properties located in the province of Quebec.

The private placements are subject to regulatory approval. In accordance with applicable securities legislation, the securities issued in connection with the private placement will be subject to a four-month hold period following the closing of the Offering.

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ABOUT THREEGOLD

Threegold Resources is a dynamic and active Quebec-based junior explorer with a diversified property portfolio. Threegold is pursuing exploration on three main projects in Quebec: Lemieux Dome in the Gaspe Peninsula for copper, zinc, lead, silver and gold; Mercier in the Abitibi region where the company recently made a rare earth element discovery containing base and rare metals (see press release of February 2, 2010); and Adanac, a gold property located a few kilometres from downtown Rouyn-Noranda.

Neither the 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.

Threegold Resources Inc. Preside & CEO (819) 825 3883, (819) 825 7545 (FAX) This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Threegold Resources Inc. VP Exploration & COO (819) 825 3883, (819) 825 7545 (FAX) This e-mail address is being protected from spambots. You need JavaScript enabled to view it

S.N.D.L. Financial Communication Investor Relations (514) 380 5610 This e-mail address is being protected from spambots. You need JavaScript enabled to view it