Update on Corporate Developments

July 6, 2011 in Press Release

NEWS RELEASE DATED July 06, 2011
TRIO GOLD CORP. (TSX-V: TGK, US-Listed: TROOF)

Update on Corporate Developments

 

Trio Gold Corp. (“Trio” or the “Company”) updates shareholders on current developments:

Drilling on the company’s current hole, AMK10-04 has been temporarily suspended due to drilling difficulties that have been encountered at approximately 2800 ft. An extremely silicified zone combined with shearing and faulting has been encountered at this depth.  Numerous attempts with a variety of diamond drill bits were made to penetrate through this silicified zone, but after consuming several bits without making any progress a decision was made to release the rig.  The company is now negotiating with another drill contractor that has a larger drill rig, which we believe will be able to penetrate the silicified section.  The expected depth of the hole is approximately 3300ft.  This section of highly silicified, sheared and faulted zone had not been encountered in previous drilling on the property. The objective of AMK10-04 is to test the potential for a deep-seated high-grade auriferous structure believed to be the source of gold mineralization found at shallow depth in the nearby Flower area.

The Rodeo Creek property is located in the northern portion of the prolific gold-producing Carlin Trend which hosts as many as 30 past and currently producing gold mines, on which more than 100 million ounces of gold production and inventory had been identified to 2003, including the world class Goldstrike, Meikle and Carlin mines.

The Company has received approval from the TSX Venture Exchange to amend the terms of 2,153,667 outstanding warrants that were issued pursuant to a private placement on July 6,2010 . The amended exercise price has been reduced to $0.10 from the original price of $0.20.  The new expiry date has been extended to July 6,2012 from the original expiry date of July 6, 2011.  Under the amended provisions if the closing price for the Company’s shares is $0.10 or greater for a period of 10 consecutive trading day’s then the warrant holders will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day.

Subject to the approval of the TSX Venture Exchange, the company will proceed with a non- brokered private placement of up to five million units at a price of $0.05 per unit. Each unit will consist of one common share and one common share purchase warrant (the “warrant”). Each warrant will entitle the holder to acquire one common share of the company at a price of eight ($0.08) per share for a period of one year from the date of closing. The net proceeds will be used for working capital and property evaluation. The shares issued pursuant to this placement will be subject to a four month hold period from the date of closing.

This release has been prepared by Philip van Angeren P.Geol., director of Trio Gold Corp., and a “qualified person” under National Instrument 43-101 guidelines.

 

TRIO GOLD CORP.
Suite 145, 251 Midpark Blvd. S.E.
Calgary, Alberta T2X-1S3
E-Mail: press@triogold.com

Website: www.triogold.com
Phone: (403) 262-9640
Fax: (403) 262-9759
CUSIP #89669C-108, Exemption #82-2127

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.