Buchans River announces closing of $3.7 million offering of units and flow-through common shares

    Trading Symbol: BUV - TSX-V
    Shares Outstanding: 33,643,343

    HALIFAX, Dec. 12 /CNW/ - Buchans River Ltd. (BUV-TSX-V) ("Buchans River")
is pleased to announce that it has closed an offering of flow-through shares
("Flow-Through Shares") and units ("Units") sold pursuant to the private
placement announced on November 21, 2007 (the "Offering"). Buchans River
issued 3,485,673 Flow-Through Shares at $0.58 per Flow-Through Share and
4,046,430 Units at $0.42 per Unit for aggregate gross proceeds of $3,721,191,
representing an approximate $220,000 increase over proposed aggregate gross
proceeds of the private placement announced on November 21, 2007.
    Each Unit is composed of one Buchans River common share ("Common Share")
and one-half of one Buchans River common share purchase warrant ("Warrant").
One whole Warrant will entitle the holder to subscribe for one Common Share at
$0.58 at any time until the date that is 18 months from closing.
    In connection with the Offering, certain persons ("Finders") received a
finder's fee equal to, in the aggregate, up to 6% of the gross proceeds raised
from the sale of Flow-Through Shares and Units to subscribers introduced by
such Finders. In addition, Finders received a number of broker's warrants
("Broker's Warrants") that are equal to, in the aggregate, up to 6% of the
aggregate number of Flow-Through Shares and Units sold pursuant to
introductions made by the Finders. Each Broker's Warrant entitles the holder
to subscribe for one Common Share for $0.58 at any time until the date that is
18 months from closing.
    All of the securities issued in connection with the Offering are subject
to a four month hold period beginning on the date of issue.

    About Buchans River

    Buchans River is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in the famous
Buchans mining camp in central Newfoundland and Labrador, Canada. Buchans
River is now 26.43% controlled by Royal Roads Corp. (RRO - TSX-V) ("Royal
Roads") which currently owns 8,890,953 Buchans River shares. Royal Roads is a
Halifax-based resource company also developing base metal properties in
Newfoundland and Labrador. Together, Royal Roads and Buchans River control a
total of 33,700 hectares within central Newfoundland's Victoria Lake and
Buchans mining camps, including the historic Buchans mine (owned by Buchans
River) and the Daniels Pond deposit (owned by Royal Roads). Buchans River also
controls several exploration properties outside of the Buchans camp, including
several under joint venture to Prominex Resource Corp. (PXR - TSX-V) and
Playfair Mining Ltd. (PLY - TSX-V), which are being actively explored.

    Forward Looking Statements

    Certain information regarding Buchans River contained herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although Buchans River believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Buchans River cautions that actual performance will be affected by a number of
factors, many of which are beyond the Buchans River's control, and that future
events and results may vary substantially from what the Company currently
foresees. Buchans River's forward-looking statements are expressly qualified
in their entirety by this cautionary statement.

    For additional information on the Company's properties and activities,
please visit our web site at http://www.buchansriver.ca/.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00004513E

For further information:

For further information: Warren G. MacLeod, President & CEO; David
Felderhof, Vice-President, (902) 444-3637

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