July 15, 2011, Vancouver, British Columbia - Gold Reach Resources Ltd. (the "Company") (TSX-V:GRV) is pleased to announce that it has closed the non-brokered flow through private placement of 2,080,000 flow through units (each a " FT Unit") at a purchase price of $0.60 per FT Unit. The Private Placement was oversubscribed for and the Company raised gross proceeds of $1,248,000. Each Unit consists of one flow through common share ("FT Common Share") of the Company and one non-transferable non flow through common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to acquire one additional common share (a "Warrant Share") of the Company at an exercise price of $0.90 per Warrant Share for a period of two years from the closing date of the Private Placement.
The Company paid a finder's fee in cash of $11,520 to Haywood Securities Inc. in connection with the Private Placement. All of the securities issued pursuant to the Private Placement are subject to a minimum four month hold period which expires on November 15, 2011 pursuant to applicable Canadian securities laws.
The proceeds of this private placement will be used for the purpose of carrying out the exploration programs on the Company's Canadian properties
On another matter, the Company announces that further to its stock option plan, it is granting options by buy an aggregate of 223,000 shares to various directors, officers, employees and consultants of the Company. The options are exercisable at $0.65 per share for a term of five years from the date of grant.
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
For further information, please contact:
Gold Reach Resources
Toll Free: 888-500-4587
Safe Harbour Statement: The Company relies upon litigation protection for "forward-looking statements."
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.