VANCOUVER, British Columbia, Dec. 29, 2004 (PRIMEZONE) -- Linux Gold Corp. (OTCBB:LNXGF) wishes to announce the completion of a private placement of US$500,000, for an aggregate of 2,777,777 units in the capital stock of the Company to one investor at a price of US$0.18 per unit. Each unit consists of one common share and one warrant (the "Warrant"). Each Warrant entitles the holder thereof to purchase an additional common share, exercisable for a period of two years from the date of closing, exercisable at a price of US$0.20. The 2,777,777 common shares and the common shares issued as part of the units upon conversion of the Warrants are subject to a 1 year hold period from the date of issuance of the units. A finder's fee of 208,333 shares of Linux Gold Corp. was paid to an individual.
Linux Gold Corp. holds an option to purchase all the issued and outstanding shares of the private company that holds an 85% interest in a co-operative joint venture company that has an option on certain mineral exploration rights for the Bo Luo Nuo Gold Mine covering an area of 161 square kilometres in Hebei Province, People's Republic of China. Exploration is continuing on the Wang Yuan Mine known gold zones.
Linux Gold Corp. also owns a 50% interest in 30 mineral claims known as the Fish Creek Prospect, located in the Fairbanks Mining Division in Alaska. Linux Gold Corp. optioned to Teryl Resources Corp. (TRC-V) a 50% interest in the Fish Creek claims by expending US$500,000 over three years. Linux Gold Corp. retains a 5% net smelter return or may convert into a 25% working interest. The Kinross Fort Knox mill is within 6 miles from the Fish Creek claims, which is reported to produce over 1,000 ounces of gold per day.
Linux Gold Corp. also has an option on a 100% interest in two gold prospects in the Bralorne Gold mining area located in British Columbia, Canada near the Bralorne Pioneer Mine. The Bralorne Pioneer Mine has produced over 4.1 million ounces of gold during the life of the mine. For more information please visit www.linuxgoldcorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"John Robertson"
John Robertson, President
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
Statements in this press release regarding Linux's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.