Freegold Arranges $17 Million Financing



    /NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    VANCOUVER, July 18 /CNW/ - Freegold Ventures Limited (TSX: ITF, OTCBB:
FGOVF, Frankfurt: FR4) is pleased to announce that it has entered into a
placement agency agreement for a debt financing on a best efforts basis
consisting of Units for gross proceeds of up to US $17 million.
    Each Unit consists of a transferable senior secured note (a "Note") in a
principal amount of US $1,000 maturing in two (2) years, and a transferable
share purchase warrant of Freegold Ventures Limited (a "Warrant"), entitling
the holder to purchase up to 500 common shares of Freegold at an exercise
price of CDN $1.20 per share for a period of five years from the date of
closing. The Warrants are subject to an acceleration clause whereby if the
closing trading price of the Company's shares is CDN $2.40 or more for a
period of 15 consecutive trading days, the Company has the option to require
the earlier exercise of the Warrants with 30 days notice from the Company. The
Notes bear interest at a rate of 15% per annum, which will be pre-paid for the
2 year term of the Note at closing. The Notes will be secured by the assets of
the Company, and will be senior to all other security interests granted.
    In consideration for their services, the agent will receive a cash
commission equal to 6.5% of the gross proceeds from the offering, and broker's
warrants equal to 6.5% of the number of Warrants issued and on the same terms
and conditions as the Warrants. The offering is scheduled to close on or about
July 31, 2008, and is subject to certain conditions, including, but not
limited to, receipt of all regulatory approvals. The securities issued by
Freegold in connection with this offering are subject to a four month hold
period as prescribed by the TSX.
    The net proceeds of the financing will be used to continue to advance the
Company's Almaden, Golden Summit, Rob and Vinasale projects, for the possible
acquisition of new projects containing feed material that could be processed
using the Company's portable 1,200 ton per day gravity-based gold recovery
plant, for the retirement of the existing US $1.8 million secured equipment
loan, and for general working capital purposes.

    About Freegold Ventures Limited

    Freegold Ventures Limited is a North American exploration and development
company with a management team experienced in mine development and production
that has a proven track-record in transitioning exploration companies into
gold producers. The Company is currently exploring advanced-stage gold
projects in Idaho and Alaska. Freegold holds a 100% lease interest in the
Almaden gold project in Idaho. This large tonnage epithermal gold deposit was
the subject of a feasibility study in 1997 calling for the development of a
95,000 oz/year open pit, heap leach mine. Freegold has finalized a 54,700-foot
drilling program which has successful identified numerous extensions to the
gold mineralization, along with newly identified open-ended areas of
molybdenum mineralization. The Company is in the process of generating a new
43-101 resource which will be followed with the commencement of new economic
evaluations. Freegold's 40,100-foot drill program in 2007 continued to
discovery new high-grade veins and bulk tonnage shear zones on its 93%
controlled Golden Summit project outside Fairbanks, Alaska. Historically over
6.75 million ounces have been recovered from streams that drain the Golden
Summit project area and an additional 500,000 ounces of lode gold were
recovered from past producing mines on the Golden Summit project which is
situated less than 5 miles to the north of the +7 million ounce Fort Knox
Mine. Further evaluation and expansion of the mineralization is currently
being undertaken with a combination of closely spaced shallow drilling,
deeper, systematic core drilling and on-going bulk sampling program using an
on-site gravity-based concentration plant. Drilling in 2008 will also be
conducted on the company's 100% controlled Rob property, where the Company has
intersected high-grade gold in near surface quartz veins similar in appearance
and grade to those being mined at the nearby 5.6 million ounce Pogo, and on
the Vinasale property, where the Company has entered into an exploration
agreement with option to lease which contains the previously identified
Vinasale gold deposit.

    On behalf of the Board of Directors

    "Steve Manz"
    Steve Manz, President and C.E.O.

    DISCLAIMER - This news release contains certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements of
historical fact, included herein are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed in the Company's documents filed from
time to time with the Toronto Stock Exchange, British Columbia Securities
Commission and the United States Securities & Exchange Commission. The TSX has
neither approved nor disapproved the contents of this news release. CUSIP:
45953B107





For further information:

For further information: Kristina Walcott, VP Business Development,
(604) 662-7307; Mark Feeney - Investor Relations, (604) 786-2587,
mfeeney@freegoldventures.com


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