Guyana Goldfields Inc. Announces Closing of First Tranche of Offering to Raise $12,300,000



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/

    TORONTO, June 4 /CNW/ - Guyana Goldfields Inc. ("Guyana" or the
"Company") (TSX:GUY) is pleased to announce that it has closed the first
tranche of its previously announced non-brokered private placement (the
"Offering") pursuant to which it has issued an aggregate of 4,472,727 units
("Units") at a price of $2.75 per Unit to raise aggregate gross proceeds of
approximately $12,300,000. Each Unit consists of one common share of Guyana
and one-half of one common share purchase warrant, each whole such warrant (a
"Warrant") entitling the holder to acquire one additional common share of
Guyana at a price of $4.00 for a period of three years from closing (the
"Warrant Term"). If, however, following June 3, 2010, the closing price of
Guyana's common shares exceeds $6.00 for 30 consecutive trading days, then the
Warrant Term shall be automatically reduced and the Warrants will expire on
the date that is 60 days following either the issuance of a press release or
the provision to the holders of the Warrants of written notice announcing the
reduced Warrant Term, all in accordance with the terms of the certificates
representing the Warrants.
    The International Finance Corporation ("IFC"), a member of the World Bank
Group focused on private sector investments in developing countries, and an
existing shareholder in the Company, purchased an aggregate of 1,818,181 Units
in the Offering. Following the closing of the Offering, IFC holds an aggregate
of 3,548,181 common shares of Guyana, representing approximately 5.6% of all
issued and outstanding common shares following the closing of this first
tranche of the Offering.
    The securities issued in connection with the Offering have a hold period
expiring on October 4, 2009. The net proceeds of the Offering will be used to
complete the previously announced Definitive Feasibility Study undertaken by
AMEC, Canada, to continue exploration of the Company's portfolio of gold
exploration properties in Guyana, South America and for general working
capital purposes. The Offering remains subject to the approval of the Toronto
Stock Exchange. The securities described herein have not been registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold in
the United States unless registered under the Act or unless an exemption from
registration is available.

    About IFC:

    IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. IFC fosters sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. IFC's new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For more
information, visit www.ifc.org.

    About Guyana:

    Guyana Goldfields Inc. is a Canadian based mineral exploration company
primarily focused on the exploration and development of gold deposits in
Guyana, South America where the Company has operated since 1996. The Company
is currently undertaking technical studies to advance and develop the Aurora
Project in Guyana. As previously announced, (see press release dated December
8, 2008 at www.sedar.com under the Guyana Goldfields Inc. profile, "Guyana
Goldfields Announces Increased Resource at Aurora 3.69 Million Ounces Measured
and Indicated and 1.72 Million Ounces Inferred"), the Aurora Gold Project
contains a Measured resource of 8.08 million tonnes @ 4.11 g/t Au., an
Indicated resource of 21.06 million tonnes @ 3.87 g/t Au. and an Inferred
resource of 19.97 million tonnes @ 2.77 g/t Au. Mr. D. K. Mukhopadhyay,
MAusIMM, Senior Mineral Resource Geologist of Micon International Co. Limited,
reviewed and approved the technical data in his capacity of a Qualified Person
under National Instrument 43-101. For further details, please refer to the
technical report of Guyana dated November 23, 2007 entitled "Technical Report:
A Mineral Resource Estimate For the Rory's Knoll, East Walcott and Aleck Hill
Zones, Aurora Gold Property, Guyana" available on SEDAR at www.sedar.com.

    Forward Looking Statements - Certain information set forth in this news
release may contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are beyond the
control of Guyana, including, but not limited to the impact of general
economic conditions, industry conditions, volatility of commodity prices,
risks associated with the uncertainty of resource and reserve estimates,
currency fluctuations, dependence upon regulatory approvals, the availability
of future financing and exploration risk. Readers are cautioned that the
assumptions used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.

    %SEDAR: 00022477E




For further information:

For further information: Guyana Goldfields Inc., Claude F. Lemasson,
P.Eng, MBA, President and Chief Operating Officer, Tel: (416) 628-5936, Fax:
(416) 628-5935, E-mail: clemasson@guygold.com, Website: www.guygold.com


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