Peak Gold announces fully marketed private placement of Special Warrants


    VANCOUVER, Oct. 30 /CNW/ - Peak Gold Ltd. (PIK:TSX-V) ("Peak Gold")
announces that it has entered into an engagement letter with a syndicate of
underwriters co-led by GMP Securities L.P., Canaccord Capital Corporation and
CIBC World Markets Inc. and including Genuity Capital Markets Inc., Orion
Securities Inc., Brant Securities Limited, Paradigm Capital Inc. and PI
Financial Corporation (the "Underwriters") to sell special warrants of Peak
Gold (the "Special Warrants") at a price of $0.75 per Special Warrant to raise
aggregate gross proceeds of approximately $225 million or such other amount to
be mutually agreed upon between Peak Gold and the Underwriters (the
"Offering"). Each Special Warrant will entitle the holder thereof to receive
one unit of Peak Gold (a "Unit") on the exercise or deemed exercise of the
Special Warrant at any time after the closing of the Offering for no
additional consideration. Each Unit will be comprised of one common share of
Peak Gold (a "Common Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant"). Each Warrant will
entitle the holder to acquire one additional Common Share at a price of $1.50
until April 3, 2012. The Warrants will be issued under the same warrant
indenture as the Peak Gold warrants which are already listed on the TSX
Venture Exchange under the symbol "PIK.WT". The closing price of the Warrants
on October 29, 2007 was $0.285.
    Net proceeds from the Offering will be used for future acquisitions and
general corporate purposes, including working capital.
    The Offering is being undertaken on a fully marketed basis, and
completion is subject to Peak Gold and the Underwriters entering into a formal
underwriting agreement following the marketing of the Offering.
    Peak Gold will use its reasonable best efforts to file a prospectus
qualifying the distribution of the Common Shares and Warrants and to have a
decision document for a final prospectus issued by the securities commissions
in Canada within 90 days after the closing of the Offering. If the decision
document for the final prospectus is not issued within such time, Peak Gold
will continue to use its reasonable best efforts to have such decision
document issued as soon as possible thereafter and each Special Warrant
outstanding at such time will, on exercise or deemed exercise, entitle the
holder thereof to acquire one Unit and an additional 0.1 of a Common Share
without further payment on the part of the holder.
    Closing of the Offering is scheduled to occur on or about November 21,
2007 and is subject to certain conditions including, but not limited to, the
receipt of all necessary approvals, including the approval of the TSX Venture
Exchange and any other applicable securities regulatory authorities.
    The Special Warrants to be sold under this Offering will be offered on a
private placement basis to UK, European and Canadian residents who are
accredited investors under applicable securities laws, and in the United
States on a private placement basis pursuant to an exemption from the
registration requirements of the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"). The Special Warrants as well as the
Common Shares and Warrants comprising the Units will be subject to a
four-month hold period under applicable Canadian securities laws.

    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 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

    Peak Gold is a new intermediate gold producer with a strong foundation
for growth. With a solid approach to acquisition and a commitment to value,
Peak Gold's goal is to significantly increase production by 2008. To learn
more about us, please visit our website at

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.


    This News Release contains "forward looking statements", within the
meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects", or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Peak Gold to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of acquisitions; risks
related to international operations; actual results of current exploration
activities; actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and copper; possible variations in ore
reserves, grade or recovery rates; failure of plant; equipment or processes to
operate as anticipated; accidents; labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities, as well as those
factors discussed in the section entitled "Risk Factors" in Peak Gold's Filing
Statement dated April 2, 2007, available at Although Peak Gold
has attempted to identify important factors that would cause actual results to
differ materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated,
or intended. There can be no assurance that such statements will prove to be
accurate. As actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking that are incorporated by reference herein,
except in accordance with applicable securities laws.

For further information:

For further information: Mélanie Hennessey, Vice President, Investor
Relations, Peak Gold Ltd., 3110-666 Burrard Street, Vancouver, British
Columbia, V6C 2X8, Telephone: (604) 696-4100, Fax: (604) 696-4110, e-mail:, website:; Vanguard Shareholder Solutions,
1205-1095 West Pender Street, Vancouver, British Columbia, V6E 2M6, Telephone:
(604) 608-0824, Toll Free: (866) 398-1088,

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