Armistice Resources Corp. completes financing

    Issued and Outstanding common shares: 60,130,435

    TORONTO, June 16 /CNW/ - Armistice Resources Corp. (TSX: AZ) ("Armistice"
or the "Corporation") is pleased to announce that it has closed its previously
announced private placement. The full subscribed private placement raised
gross proceeds of $3,238,250.35 through the sale of 6,165,001 units in the
capital of the Corporation (the "Units") at $0.35 per Unit and 2,701,250
flow-through common shares in the capital of the Corporation (the "FT Shares")
at $0.40 per FT Share.
    Each Unit is comprised of one common share of the Corporation (a "Common
Share") and one-half of one Common Share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant will be exercisable into one Common Share at an
exercise price of $0.45 per Common Share for a period of 18 months from
closing. The Warrant term will be subject to acceleration if, after four
months and a day after closing, the closing price of the Common Shares is
equal to or exceeds $0.70 for 30 consecutive trading days.
    The Corporation issued 473,571 Units and 100,000 FT Shares directly to
subscribers and these securities were not subject to a cash commission. D&D
Securities Company ("D&D") received a cash commission equal to 7% of the gross
proceeds of the remaining portion of the offering. D&D also received broker's
warrants exercisable into that number of Common Shares equal to 10% of the
aggregate number of Units and FT Shares sold through D&D in the offering. Each
broker's warrant will be exercisable to acquire one Common Share at a price of
$0.35 per share for a period of 12 months after closing.
    Armistice intends to use the net proceeds of the FT Share portion of the
offering for underground exploration at its McGarry project. The net proceeds
of the Unit portion of the offering will be used for exploration, general
corporate purposes and working capital.

    Armistice is a Canadian exploration company that owns an advanced
exploration underground gold project in North-eastern Ontario located on the
prolific Larder Lake break. The McGarry project consists of 34 contiguous
patented mining claims and licences of occupation totaling 484 hectares which
adjoins the former producing Kerr Addison gold mine which produced in excess
of 11 million ounces of gold. Underground drilling and bulk sampling is
currently underway.


SOURCES CORP. "Todd J. Morgan" Todd J. Morgan President, CEO and Chairman of the Board

For further information:

For further information: Todd J. Morgan, (705) 567-4567,

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