Mr. Tim Gallagher reports

EXCALIBUR RESOURCES ARRANGES PRIVATE PLACEMENT

Excalibur Resources Ltd. has arranged a non-brokered private placement of 6.19 million units at 10 cents per unit for a total of $619,000. Each unit consists of one common share and one share purchase warrant exercisable to acquire an additional common share at 15 cents during the first year and at 20 cents in the second year.

The company will pay a cash commission of 8 per cent on a portion of the funds raised. Net proceeds will be applied to working capital and to the company's Catanava gold production project in Mexico.