Golden Alliance arranges $1-million private placement

2010-08-24 09:51 ET - News Release

Mr. Joseph Grosso reports

GOLDEN ALLIANCE TO RAISE $1,000,000 THROUGH A NON-BROKERED PRIVATE PLACEMENT

Golden Alliance Resources Corp. has arranged a non-brokered private placement financing of two million units at a price of 50 cents per unit. Each unit will comprise one common share and one-half of one non-transferable warrant.

One whole warrant will entitle the holder, on exercise, to purchase one additional common share of the company at a purchase price of 65 cents per warrant share for 18 months from the date of issue of the warrant. If the closing price for the company's shares is 90 cents or greater for a period of 10 consecutive trading days, then the warrantholders will have 20 days to exercise their warrants, otherwise the warrants will expire on the 21st day.

The proceeds will be used to advance exploration on projects in Peru and for general working capital.

This financing is subject to regulatory approval. The placement securities will be issued subject to a minimum four-month hold period.

Directors, officers and employees of the company may participate in a portion of the financing.

A finder's fee may be payable on part of the financing.

The terms of this private placement replace the terms of the non-brokered private placement previously announced by the company in Stockwatch on June 14, 2010, and July 16, 2010.

We seek Safe Harbor.