Uracan announces closing of $4.805 million financing


    Trading Symbol: (TSX - V): URC

    VANCOUVER, Oct. 29 /CNW/ - Uracan Resources Ltd. (the "Company") is
pleased to announce that, effective October 24, 2008, the Company has
completed the first closing of its previously announced non-brokered private
placement of 18,220,000 flow-through units (the "FT Units") at $0.25 per FT
Unit for proceeds of $4,555,000 ($2,250,000, of which was completed with
MineralFields Group) and 1,250,000 non-flow-through units (the "NFT Units") at
$0.20 per NFT Unit for proceeds of $250,000.
    Each FT Unit consists of a share and one half of a share purchase warrant
to purchase an additional share at $0.50 for a period of 18 months expiring on
April 24, 2010. Each NFT Unit consists of a share and one half of a share
purchase warrant to purchase an additional share at $0.40 for a period of
18 months, expiring on April 24, 2010.
    In connection with the private placement, the Company paid finders' fees
in an aggregate of $255,500 and 966,000 options to purchase a share of the
Company at $0.25 for a period of 18 months, expiring on April 24, 2010.
    All securities issued pursuant to the private placement are subject to a
four-month hold period expiring on February 25, 2009.
    The Company anticipates that further private placement closings on the
same terms will be completed in the near future.
    Proceeds from the private placement will be used to fund the ongoing
exploration programs at the Company's North Shore project in Quebec and its
Pipewrench Lake project in Saskatchewan, as well as for working capital.
    "We are very pleased to be entering into this relationship with
MineralFields Group", said Gregg Sedun, President and CEO. "This is an
important milestone in the growth of Uracan Resources Ltd. and we look forward
to working with MineralFields Group as we develop our properties in the Quebec
and Saskatchewan regions."

    About MineralFields, Pathway and First Canadian Securities(r):

    MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnership to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com. First Canadian Securities(r), a division
of Limited Market Dealer Inc., is active in leading resource financings (both
flow-through and hard dollar PIPE financings) on competitive, effective and
service-friendly terms, with investors both within, and outside of
MineralFields Group.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. The
    foregoing information may contain forward-looking statements relating to
    the future performance of Uracan Resources Ltd. Forward-looking
    statements, specifically those concerning future performance, are subject
    to certain risks and uncertainties, and actual results may differ
    materially. These risks and uncertainties are detailed from time to time
    in the Company's filings with the appropriate securities commissions.

For further information:

For further information: Gregg J. Sedun, President and CEO, OR John
Sutherland, CFO, (604) 345-6641; Keith Schaefer, Vanguard Shareholder
Solutions Inc., (604) 608-0824, www.vanguardsolutions.ca

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Uracan Resources Ltd.

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