Freegold Receives Additional Bridge Loan Extensions

    VANCOUVER, Feb. 23 /CNW/ - Freegold Ventures Limited (TSX: ITF, OTCBB:
FGOVF, Frankfurt: FR4) is pleased to announce that it has reached an agreement
with its bridge lenders to further extend the maturity date of its US $4.1
million in bridge loans to July 15, 2009. As consideration of these
extensions, the interest rate on the two loans is being increased from 12.5%
to 15.0%, and the lenders will be receiving extension fees consisting of
720,000 common shares of the Company, 1 million warrants to purchase common
stock of the Company for a two year period at a price of C $0.25/share, and a
cash fee equal to 3% of loan principal, payable upon the earlier of the
receipt of new financing or March 31, 2009.
    Negotiations are continuing with Freegold's equipment lenders regarding
certain waivers required to maintain the original May 30, 2010 maturity date,
and to remove an early repayment right that was provided to the equipment
lenders (see released dated May 20, 2008). This US $1.79 million loan was put
in place to allow the Company to complete its purchase of equipment for its
1,200 ton per day portable processing plant, and is secured by 302 acres of
private property which was purchased adjacent to the Golden Summit property,
and all of the Company's processing equipment at Golden Summit, which includes
a crushing circuit (primary impact crusher and secondary cone crusher), a
grinding circuit (3 ball mills), a gravity-based gold recovery circuit (4
Knelson concentrators), 1.2 MW of portable diesel power generation, plus
assorted support and materials handling equipment.
    Steve Manz, President and CEO of Freegold, commented "We are grateful
that our bridge lenders have provided us with the additional time we need in
which to refinance the Company. We are continuing to assess a variety of
funding alternatives, and are pleased to see a definite turn in the market
with an increase in the number of junior gold explorers recently having raised
fresh debt and equity in this rising gold market. We continue to believe that
our portfolio of North American-based gold projects are among the best
advanced-stage projects currently being explored within the junior resource
sector. Although our efforts over the past few months have focused on our
refinancing, we have continued to compile and assess the results from our
extensive work programs in 2008, and will be providing new project updates

    The foregoing is subject to execution of definitive documentation and
regulatory approval.

    "Steve Manz"

    Steve Manz, President and CEO

    About Freegold Ventures Limited

    Freegold Ventures Limited is a North American exploration and development
company. The Company is currently exploring advanced-stage gold projects in
Idaho and Alaska. Freegold holds a 100% lease interest in the Almaden gold
project in southern Idaho, a 93% interest in the Golden Summit gold project
outside Fairbanks, Alaska, and near the Fort Knox gold mine, a 100% interest
in the Rob gold project near the Pogo gold mine in the Goodpaster Mining
District of Alaska, and has an exploration agreement with option to lease the
Vinasale gold project in central Alaska.

    DISCLAIMER - This press release contains "forward-looking information"
within the meaning of Canadian securities laws including, without limitation,
statements and information regarding the Company's exploration operations and
financing needs. Such forward-looking information reflects the current
expectations or beliefs of the Company. Forward-looking information is subject
to a number of risks, assumptions and uncertainties that may cause the actual
results of the Company to differ materially from those discussed herein,
including the possibility that future exploration results will not be
consistent with the Company's expectations, the uncertainties involved in
interpreting exploration results, other inherent risks in the mineral
exploration and development industry, the possibility that the proposed loan
extensions described herein will not be completed or completed on terms not
currently contemplated by the Company and the possibility that the Company may
not be able to raise additional financing required to satisfy its obligations
to its lenders and to fund operations. Readers are cautioned not to place
undue reliance on forward-looking information because it is possible that
expectations, predictions, forecasts, projections and other forms of
forward-looking information will not be achieved by the Company. A change in
any one of these factors could cause actual events or results to differ
materially from those projected in the forward-looking information. Although
the Company believes that the expectations reflected in such forward-looking
statements and information are reasonable, the Company can give no assurance
that such expectations will prove to be correct. Forward-looking statements
and information are based on current expectations, estimates and projections
that involve a number of risks and uncertainties which could cause actual
results to differ materially from those anticipated by the Company and
described in the forward-looking statements or information. The
forward-looking statements and information are based on a number of
assumptions which may prove to be incorrect. In addition to other assumptions
identified herein, the Company has made assumptions regarding, among other
things, the ability to conduct exploration activities in a timely manner and
in accordance with the Company's drilling program, the availability and costs
of financing, the degree of risk that credit approvals may be delayed or
withheld, and other risks and uncertainties described elsewhere in this
document or in the Company's other filings with Canadian securities
authorities. Such forward-looking information speaks only as of the date on
which it is made and, unless required by applicable securities laws, the
Company undertakes no obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
CUSIP: 45953B107

For further information:

For further information: Mark Feeney - Investor Relations, (604)

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