Mr. Edward Kelly reports

NEXUS GOLD ANNOUNCES DEBT SETTLEMENT TRANSACTION

Nexus Gold Corp. has reached agreements with certain creditors of the company to settle outstanding indebtedness totalling $996,429 in consideration for the issuance of 9,489,800 units at a deemed price of 10.5 cents per settlement unit. Each settlement unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share of the company at a price of 20 cents for a period of 24 months.

Completion of the debt settlement remains subject to the approval of the TSX Venture Exchange. All securities issued in connection with the debt settlement will be subject to restrictions on resale for a period of four months and one day in accordance with applicable securities laws. In addition to restrictions prescribed by applicable securities laws, the creditors have agreed that the settlement units will be subject to a voluntary pooling arrangement, during which time they cannot be transferred or assigned. The settlement units will be released from the pooling arrangement in three equal tranches on June 30, Sept. 30 and Dec. 31, 2026.

We seek Safe Harbor.