Mr. Michael Hopley reports

Sunridge Gold Corp. has proposed to raise up to $10-million by way of a non-brokered private placement through the issuance of up to 20.0 million units at a price of 50 cens per unit. The company reserves the right to increase the size of the private placement or to modify the type, nature and/or price of the units for any reason. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of 75 cents for a period of two years from closing the private placement. The private placement and any modifications to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. The company may pay finders' fees in accordance with the policies of the TSX Venture Exchange.

The proceeds of the financing will be used to finance the company's work programs at the Asmara project in Eritrea and for general corporate purposes.