Mr. Ronald Coombes reports

PROVIDENCE GOLD MINES INC. ANNOUNCES FINANCING UPDATE ON THE LA DAMA DE ORO GOLD PROPERTY

Providence Gold Mines Inc. has arranged a non-brokered unit private placement financing of up to $250,000 through the issuance of five million units of the company. Each unit will consist of one common share and one full warrant, exercisable for a period of two years. The unit is priced at five cents for one common share in the capital of the company and one non-transferable full warrant. Each non-transferable warrant will entitle the holder to purchase one additional common share at a price of five cents for a period of 24 months from the date of closing of the private placement will be subject to the approval of the TSX Venture Exchange.

All securities issued with respect to the private placement will be subject to a four-month-plus-one-day hold period from the date of issuance in accordance with applicable securities laws. Closing of the private placement is subject to all necessary regulatory approvals. The company intends to issue the units pursuant to the prospectus exemptions set out in National Instrument 45-106, Prospectus Exemptions, including the accredited investor exemption, and family, friends and business associates exemption.

The company intends to use funds from the net proceeds for regulatory fees, sampling and evaluation of the existing potential underground mineralization at the La Dama De Oro, historical Ace in the Hole stope, located near surface, and geochemical surface survey and administration.

As reported previously, a National Instrument 43-101 has been submitted to the TSX Venture Exchange for review and approval. The initial review of the regulators determined that the submission would be treated as a fundamental transaction requiring additional information and the company is responding accordingly.

Property summary

Permits for a bulk sample, water, road access, environmental, plan of operation and mill site have been approved. To date, there has not been any known drilling or modern-day scientific exploration or identified NI 43-101 resources.

The La Dama de Oro property is in the Silver Mountain mining district, within the structurally complex eastern California shear zone and the intersection with the San Andreas fault zone. Bedrock geology includes Mesozoic quartz monzonite that intrudes the Jurassic sidewinder volcanics. The structural history of the region implies a sequence of compressional and extensional events that reactivated favourably oriented zones of weakness for the circulation of hydrothermal fluids. The main zone of mineralization is hosted by the La Dama de Oro fault, a shallow northeast-dipping oblique-slip fault.

The mineralization at the property is classified as a structurally controlled, low-sulphidation epithermal gold-silver vein system. Gold and silver mineralization is associated with multiphase quartz veining, brecciation and pervasive hydrothermal alteration along the La Dama de Oro fault. The largest known vein is 4.5 feet at its widest point and remains open to exploration for over 6,000 feet. The gold system has robust potential not just within the La Dama de Oro vein, but as well for additional undiscovered veins along the fault system.

Ronald A. Coombes, president and chief executive officer, commented, "Having all permits in place gives certainty to realize potential future opportunity for production at the La Dama de Oro mine."

The scientific and technical information contained in this news release has been reviewed and approved by Zachary Black, SME-RM, a qualified person as defined under NI 43-101. Mr. Black is a consultant and is independent of Providence Gold Mines.

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