| ||March 12, 2007|
Lund Arranges Non-Brokered Private Placement To Fund Exploration Work And Acquires Additional Interest In The Carneirinho Property
| ||Lund Gold Ltd. (TSX-V: LGD) is pleased to report that it has arranged, subject to regulatory approval, a non-brokered private placement of 12,000,000 units of Lund at price of $0.25 per unit to generate proceeds of $3,000,000 that will be used primarily to fund the next phase of work on its Carneirinho Property in Tapajós region of north central Brazil. Each unit will consist of one share of Lund and one half of a non-transferable share purchase warrant, each whole warrant entitling the purchase of an additional share of Lund at a price of $0.40 per share for a period of two years following the date of closing.|
In conjunction with this placement, Lund has agreed, subject to regulatory approval, to acquire from Oromin Explorations Ltd. ("Oromin") all of Oromin's interest in the Carneirinho Property. Lund and Oromin currently hold an option to each acquire a 50% interest in the Carneirinho Property. As consideration for the acquisition, Lund will issue to Oromin 1,197,906 common shares of Lund at deemed price of $0.31 per share (being the weighted average price for Lund's shares for the last twenty trading days). The value of these shares ($371,351) equals the amount that Oromin has spent on exploration and development of the Carneirinho Property.
The Tapajós region is generally regarded as the premier epithermal gold district in Brazil and the Carneirinho Property lies approximately 30 kilometres northwest of the Tocantinzinho Property currently being explored by Brazauro Resources Corp. The consolidation of a 100% option interest is the next step in Lund's strategic plan to focus on developing mineral resource assets.
Lund plans to resume exploration at Carneirinho as soon as crews can be mobilized after completion of this private placement. The initial phase of the 2007 exploration program will include detailed in fill soil geochemical sampling, hand trenching and preliminary diamond drilling at the coincident geophysical-geochemical anomalies identified during the 2006 exploration program.
To find out more about Lund Gold Ltd. (TSX-V: LGD), visit our website at www.lundgold.com.
On behalf of the Board of Directors of
LUND GOLD LTD.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS RELEASE
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