Emgold proceeds with private placement financing


    TSX Venture Exchange: EMR
    OTC Bulletin Board:   EGMCF
    U.S. 20-F Registration: 000-51411
    Frankfurt Stock Exchange: EML

    VANCOUVER, Sept. 26 /CNW/ - Emgold Mining Corporation (EMR - TSX Venture)
(the "Company" or "Emgold") is pleased to announce it is proceeding with a
non-brokered private placement offering (the "Offering") to raise gross
proceeds of up to $8,000,000 through the offer and sale of units (the "Units")
of the Company at a price of $0.11 per Unit.
    Each Unit will be comprised of one fully paid and non-assessable common
share of the Company (a "Common Share") and one transferable common share
purchase warrant (a "Warrant"). Each Warrant will entitle the subscriber to
subscribe for one additional previously unissued common share (a "Warrant
Share") in the capital of the Company for a period of 24 months following the
date of issue at an exercise price of $0.15 per Warrant Share.
    There is no minimum subscription for this Offering, and all funds
subscribed will be available to the Company for its immediate use. This
Offering may be closed in one or more tranches.
    Emgold may pay finder's fees in accordance with TSX Venture Exchange
policies, on subscriptions received pursuant to the Offering in the form of
cash equal to 8% of the proceeds raised and non-transferable options (the
"Finder's Options") equal to 8% of the total number of Units sold in the
Offering to subscribers arranged by eligible finders (the "Finders"). Each of
the Finder's Options shall be exercisable to acquire a Unit of the Company
(the "Finder's Units") at a price of $0.11 per Finder's Unit for a period of
18 months from the date of issuance, subject to adjustment. Each Finder's Unit
will be comprised of one common share of the Company and one non-transferable
common share purchase warrant of the Company exercisable to acquire one
additional common share of the Company for a period of 24 months from the date
of issuance of the Finder's Option at a price of $0.15.
    All securities issued or issuable in connection with the Offering will be
subject to a hold period and may not be traded for four months plus one day
from the date of closing.
    The directors and certain of the officers of the Company are subscribing
to the Offering. Due to this relationship, the portion of the Offering being
subscribed for by the directors and officers is considered to be a "related
party transaction" as defined under TSX Venture Exchange Policy 5.9 - Insider
Bids, Issuer Bids, Going Private Transactions and Related Party Transactions
("Policy 5.9") and Ontario Securities Commission Rule 61-501 (the "OSC Rule").
However, the Offering is exempt from the valuation requirements of Policy 5.9
and the OSC Rule for related party transactions as its securities are solely
listed on the TSX Venture Exchange. The Offering is exempt from the minority
approval requirements of Policy 5.9 and the OSC Rule for related party
transactions as on the basis that the fair market value of the Units of the
Company issued to the directors and officers represents less than 25% of the
Company's current market capitalization. The transaction may close before
21 days following the filing of the material change report respecting this
announcement if the management of the Company determines it to be necessary
for sound business reasons.
    The securities offered have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an available exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be
    The proceeds of the Offering will be used primarily to cover ongoing
costs associated with the Company's permitting application for the Company's
Idaho-Maryland mine, including some funds for basic engineering of long lead
items for the mine in anticipation of receipt of the permit, and for
completing the exploration programs currently on the Company's British
Columbia mineral properties, for working capital.
    For more information about Emgold, the Idaho-Maryland Project in Grass
Valley, the Stewart, Rozan and Jazz Properties in British Columbia, please
visit www.emgold.com or www.sedar.com.

                     On behalf of the Board of Directors,

                              Sargent H. Berner
                            Co-Executive Chairman

        The TSX Venture Exchange does not accept responsibility for the
       adequacy or accuracy of this release. No regulatory authority has
        approved or disapproved the information contained in this news

    This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements. Although
the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes, and
continued availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
filings that are available at www.sedar.com or the Company's website at

For further information:

For further information: Michael O'Connor, Manager, Investor Relations,
Tel: (604) 687-4622, Fax: (604) 687-4212, Email: info@emgold.com

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