November 7 2005 – Toronto, November 7, 2005 – Purepoint Uranium Group Inc. (TSX-V:PTU) is pleased to confirm the closing of their private placement announced on October 21, 2005 with Blackmont Capital Inc. and CIBC World Markets as agents. The placement raised gross proceeds of $5,500,000, consisting of a total of 13,750,000 units each of one flow-through common share and one half of one common share purchase warrant. Each full warrant entitles the holder to purchase one common share at $0.50 per share for a period of one year from the closing date.
“We were particularly pleased with the overwhelming retail demand for this offering,” said Chris Frostad, President & CEO, Purepoint Uranium Group Inc. “We now have a shareholder base that is more balanced between retail, institutions, and insiders.”
Gross proceeds of the offering will be spent on the company’s properties in the Canadian Athabasca Basin. This winter’s advanced program on their Turnor Lake and Red Willow projects will be one of the few drill programs to be carried out by a junior explorer in the Basin this season. In addition, this financing will allow Purepoint to advance its remaining five properties in preparation for drilling during the 2006-2007 session.
Blackmont Capital Inc. and CIBC World Markets received a cash fee of 8% of the gross proceeds raised from the offering, as well as broker’s warrants, exercisable for a period of 24 months, to purchase a number of common shares equal to 10% of the number of units issued in the offering at a price of $0.40.
Purepoint Uranium Corporation is a uranium exploration company driven by intellectual, precision prospecting focusing on distinct, targeted properties with historic significance in the Canadian Athabasca Basin. Currently, Purepoint’s seven, 100 per cent owned, Athabasca Basin uranium projects cover nearly 120,000 hectares and are considered high prospect properties that include several near term targets that are drill ready for winter 2005/06.
Disclosure regarding forward-looking statements
Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.