Mr. Hemdat Sawh reports

LAVRAS GOLD ANNOUNCES PROPOSED PRIVATE PLACEMENT

Lavras Gold Corp. intends to complete a private placement offering of eight million common shares in the capital of the company at a price of $1.35 per common share for gross proceeds of $10.8-million. The net proceeds of the offering are expected to be used primarily for exploration expenses on the company's gold properties comprising its Lavras do Sul project, located in Rio Grande do Sul state of Brazil, and for general working capital purposes.

The offering will be conducted pursuant to available exemptions from the registration and prospectus requirements of applicable securities legislation, including sales to accredited investors and to close personal friends and business associates of directors and officers of the company.

The completion of the offering is subject to the receipt of all regulatory and other approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.

About Lavras Gold Corp.

Lavras Gold is a Canadian exploration company focused on realizing the potential of a multimillion-ounce gold district in southern Brazil. Its Lavras do Sul project is located in Rio Grande do Sul state and is primarily an intrusive-hosted gold system of possible alkaline affinity. More than 23 gold prospects centred on historic gold workings have been identified on the property, which spans more than 22,000 hectares.

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