Gulfside closes private placement

VANCOUVER, Oct. 23 /CNW/ - Robert L. Card, President of Gulfside Minerals Ltd., ("Gulfside" or the "Company") (TSXV: GMG), is pleased to announce that the private placement announced on August 10, 2009 and amended on October 9, 2009, has been approved by the TSX Venture Exchange ("TSXV") and has closed.

A total of 2,857,143 units at a price of CDN$1.05 per unit were sold resulting in gross proceeds to the Company of CDN$3,000,000. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase an additional common share at a price of CDN$1.25 for a period of one year from closing of the private placement.

Finder's fees totaling CDN$230,492 will be paid in connection with the financing.

All securities will be subject to a four-month hold period expiring on February 24, 2010 in accordance with applicable securities laws.

The Company also received TSXV approval of the acquisition of three mining exploration licenses, the Onjuul coal project, from two private Mongolian companies. The acquisition consists of US$17.5 million over 22 months, the issuance of 3,400,000 common shares and a 6% royalty on production. The first installment of the purchase price of US$1,000,000 and 2,400,000 common shares is due 60 days after approval by the TSXV, 500,000 common shares 12 months after approval and 500,000 common shares 18 months after approval. All shares are subject to a four month hold period. An aggregate finder's fee of $1,144,750 will be paid in stages in connection with the property acquisition. The first tranche of the finder's fee amounting to $193,278 will be paid by issuing 184,075 units with the same terms as the private placement.

With the completion of the private placement the Company has begun mobilizing the drilling program. The drill program calls for drilling of up to 20 holes of 200-metre depth. The Company will be drilling selected holes to much greater depths to test the thickness of the coal-bearing formation. Depending on the findings and the time involved, the Company may expand both the area and depth of holes to more fully evaluate the Onjuul structure. The Company will have two drill rigs operating and the drillers estimate that the program will take approximately 45 to 60 days to complete.

As previously announced the Company received clearance from the Chief Justice of the Supreme Court of Mongolia to receive 5% of the shares of ECM LLC. ECM LLC is the Mongolian company which owns the exploration license to the Erdenetsogt coal project. This award and the underlying legal suit form the basis for the Company's claim for additional interest in the project.

    
    On behalf of the Board of Directors
    Gulfside Minerals Ltd.

    "Robert L. Card"

    Robert L. Card
    President
    

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.

    
    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.
    

SOURCE GULFSIDE MINERALS LTD.

For further information: For further information: Investor Contact: Del Thachuk, Delmor Enterprises Ltd., (604) 538-5995, Delthachuk@shaw.ca, www.gulfsideminerals.com

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GULFSIDE MINERALS LTD.

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