Kaminak Announces $10 Million Bought Deal Financing

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, Oct. 21 /CNW/ - Kaminak Gold Corporation (KAM:TSX-V) ("Kaminak" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including Fraser Mackenzie Limited and Paradigm Capital Inc., to sell 2,780,000 flow-through common shares (the "Flow-Through Shares") at a price of CDN$3.60 per Flow-Through Share for gross proceeds of CDN$10,008,000 (the "Offering").  In addition, the Company will grant the Underwriter an over-allotment option, exercisable prior to the closing of the Offering, to purchase from the Company additional Flow-Through Shares to raise additional gross proceeds of up to CDN$2,000,000 at CDN$3.60 per Flow-Through Share.

The Company intends to use the net proceeds of the Offering to conduct exploration activities on its Coffee project located in the White Gold District, Yukon.

Closing of the Offering is anticipated to occur on or before November 16, 2010 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the Offering and through the over-allotment option will be subject to a four month hold period which will expire four months from the date of closing. 

The Underwriter will receive a cash commission equivalent to 6% of the gross proceeds raised, and non-transferable share purchase warrants entitling the Underwriter to purchase, at a price of CDN$3.60 within 24 months after closing of the Offering, common shares equal to 6% of the aggregate number of securities sold pursuant to the Offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors of Kaminak

"Rob Carpenter"

Rob Carpenter, Ph.D., P.Geo.

President and CEO

Kaminak Gold Corporation

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com or contact Tony Reda, Vice-President of Corporate Development, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected]. Kaminak is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com