Mr. Roger Walsh reports

RAPIER GOLD INC. ANNOUNCES $600,000 PRIVATE PLACEMENT

Rapier Gold Inc. has arranged a non-brokered private placement of flow-through and non-flow-through units on a best efforts basis at a price of 7.5 cents per flow-through unit and five cents per non-flow-through unit for aggregate proceeds of up to $600,000.

Each FT unit or NFT unit will consist of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of 10 cents for 12 months following completion of the offering. The company reserves the right to increase the size of the private placement or to modify the type, nature and/or price.

The financing may be closed in multiple tranches, with a final closing anticipated on or before Aug. 15, 2014. The offering is subject to certain conditions, including approval of the TSX Venture Exchange. The company may pay finders' fees in accordance with the policies of the TSX Venture Exchange. The shares will be subject to a statutory four-month hold period.

The proceeds from the issuance of the FT units will qualify as Canadian exploration expenses, which will be renounced to investors no later than Dec. 31, 2014. The company intends to use the net proceeds of the offering primarily for expenditures on the company's Pen Gold project, located 75 kilometres southwest of Timmins, Ont., and for general working capital.

Certain directors and officers of the company intend to acquire securities under the private placement. Any such participation would be considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to, or the consideration paid by such persons, will exceed 25 per cent of the company's market capitalization.

Pen Gold project summary

The company's activities are exclusively focused on exploring for gold on the Pen Gold project, comprising 16,448 hectares (approximately 160 square kilometres) located 75 km southwest of Timmins, Ont. Located in close proximity to the Pen Gold project are three of the most interesting new gold discoveries on the Ontario side of the Abitibi belt:

• Additional discoveries by Lakeshore Gold at Thunder Creek, 50 km east;
• Probe Mine's Borden Lake deposit 70 km west;
• Iamgold's Cote Lake deposit 70 km south, which was acquired two years ago.

The Pen Gold project sits on the western extension of the Porcupine-Destor Deformation fault zone, one of the most productive gold structures in the world. This fault zone extends east to Chibougamau in Quebec and hosts many of the most famous gold mines in Canada.

The company has completed a 13-hole drill program of 4,350 metres, focused on four key areas of the project: Westgate area, Porphyry Hill area, Midway area and Talc mine area. Details were outlined in the company's press releases dated June 24, 2013, and July 26, 2013.

In the summer of 2013, the company completed mapping and prospecting over approximately 4,100 hectares, or approximately 25 per cent of the property, which identified two new trends: the Westgate trend extending approximately 3.5 kilometres east-west from the two holes drilled at Westgate, the Porphyry Hill trend extending two km east of the one hole drilled at Porphyry Hill and a new area with historical work; and the Nib Yellowknife area located two km south of the Talc mine area.

Results from this work were outlined in Rapier's press releases dated Sept. 5, 2013, and Oct. 7, 2013. Current market conditions and financial constraints have resulted in the company evaluating various options to advance the next stage of work, including joint ventures and/or alliances with other mining companies.

We seek Safe Harbor.