Mr. Gordon Lam reports

HERCULES ANNOUNCES PRIVATE PLACEMENT

Hercules Resources Corp. has arranged a non-brokered private placement of six million units at a price of seven cents per unit for gross proceeds of up to $420,000.

Each unit consists of one common share of the company and one common share purchase warrant exercisable into one common share of the company at a price of 12 cents per warrant for a period of 24 months from the closing date of the offering.

All securities to be issued pursuant to the offering will be subject to a statutory hold period of four months and a day from issuance under applicable Canadian securities law. The proceeds of the offering are planned to be used for exploration and general working capital purposes.

We seek Safe Harbor.