Australian Solomons Gold announces satisfaction of subscription receipt release conditions



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
    FOR DISSEMINATION IN THE UNITED STATES/

    TORONTO, Sept. 27 /CNW/ - (TSX:SGA) - Australian Solomons Gold Limited
(the "Company" or "ASG") is pleased to announce that it has satisfied the
escrow release conditions (the "Release Conditions") relating to its
previously announced brokered private placement of subscription receipts (the
"Subscription Receipts").
    On August 9, 2007, the Company issued 13,044,000 Subscription Receipts at
a price of $1.15 per Subscription Receipt raising gross proceeds of
$15,000,600 (the "Offering"). Each Subscription Receipt shall be exchanged,
for no additional consideration, into one common share (a "Share") of the
Company and one-half of one warrant, with each full warrant (a "Warrant")
providing the purchaser with the right to subscribe for one Share for a period
of 36 months following the closing of the Offering at a price of $1.50 per
Share. An amount equating to 65% of the proceeds of the Offering were placed
in escrow with Computershare Trust Company of Canada, as subscription receipt
agent, with the release of such proceeds being subject to fulfillment of the
Release Conditions, namely qualifying the Shares and Warrants pursuant to a
final short form prospectus of ASG, and obtaining the requisite approval of
the shareholders of ASG with respect to the Offering.
    The Subscription Receipts were offered on a best efforts agency basis by
a syndicate of agents co-led by Haywood Securities Inc. and Paradigm Capital
Inc. and including Fraser Mackenzie Limited.
    The net proceeds of the Offering will be used to fund continued
exploration, preliminary development activities for the Gold Ridge Project,
for working capital and general corporate purposes.

    The securities being offered have not, nor will they be registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold within the United States or to, or for the account or benefit of, U.S.
persons absent U.S. registration or an applicable exemption from the U.S.
registration requirements. This release does not constitute an offer for sale
of securities in the United States.

    Cautionary Statement Regarding Forward-Looking Information

    All statements, trend analysis and other information contained in this
press release relative to markets for ASG's trends in resources, recoveries,
production and anticipated expense levels, as well as other statements about
anticipated future events or results constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate", "expect"
and "intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions.
Forward-looking statements are subject to business and economic risks and
uncertainties and other factors that could cause actual results of operations
to differ materially from those contained in the forward-looking statements.
Forward-looking statements are based on estimates and opinions of management
at the date the statements are made. Some of these risks, uncertainties and
other factors are described under the heading "Risk Factors" in the Company's
annual information form available on www.sedar.com. ASG does not undertake any
obligation to update forward-looking statements even if circumstances or
management's estimates or opinions should change. Investors should not place
undue reliance on forward-looking statements.

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release

    Please note that the Head Office of ASG is located in Queensland,
Australia and is 14 hours ahead of Toronto time.

    %SEDAR: 00023730E




For further information:

For further information: ASG: John Bovard, CEO, +61 7 3624 9003
(office), or cell +61 (0)423 607290, john.bovard@solomonsgold.com.au; Investor
Relations: Martti Kangas, (416) 815-0700 x 243, mkangas@equicomgroup.com;
Michael Joyner, (416) 815-0700 x 275, mjoyner@equicomgroup.com; The Equicom
Group, Toronto, Canada

Organization Profile

AUSTRALIAN SOLOMONS GOLD LIMITED

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