Mr. Peter Bernier reports

PROSPER GOLD CORP. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Prosper Gold Corp. has closed the first tranche of a private placement financing of common shares in the capital of the company that qualify as flow-through shares for the purposes of the Income Tax Act (Canada). The first tranche of the financing consisted of 4,544,727 FT shares at a price of 11 cents per FT share for gross proceeds to the company of $499,920.

In connection with the first tranche, the company paid $35,000 in cash and issued 318,180 common share purchase warrants to finders at closing. Each broker's warrant is non-transferable and exercisable at 20 cents for one common share in the capital of the company for a period of 36 months following the date hereof.

Prosper Gold expects to use the net proceeds from the first tranche to finance exploration activities at the company's Cyprus project.