LANGLEY, CANADA, January 8, 2010 - Shoreham Resources Ltd. (the "Company" or "Shoreham") (TSX-V: "SMH"), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, is pleased to announce the completion and TSX Venture Exchange approval of a non-brokered private placement financing with Mulgravian Ventures Corporation ("Mulgravian"), which raised gross proceeds of $210,000. This private placement was arranged as part of Mulgravian's Option to Joint Venture the Five Stars Property, as News Released on November 4, 2009.
This private placement was closed on December 10, 2009 and received TSX Venture Exchange approval on January 5, 2010. The financing consists of the sale of 700,000 units at a price of $0.30 per unit, whereby each unit consists of one common share of Shoreham Resources Ltd. and three-quarters of one warrant (each whole warrant a "Warrant") which shall entitle the holder to purchase one additional share of the Company per whole warrant at the price of $0.60 per share if exercised on or before the first anniversary of the date of issuance, and at a price of $1.20 per share after the first anniversary and on or before the second anniversary of the date of issuance. The Company will be using the funds generated from this financing to fund ongoing corporate expenses and to advance our Guyanese gold, diamond and PGM projects; the subscription agreement specifies that the proceeds of the exercise of the warrants, if any, shall be dedicated to the exploration and development of Shoreham's Guyana Programs. The Company had 62,359,298 shares outstanding prior to this News Release.
Pursuant to the terms of the Shoreham-Mulgravian Letter of Intent ("LOI"); prior to the first anniversary of Exchange Approval of the Joint Venture Agreement, Mulgravian will be required to exercise two-thirds (2/3) of the Warrants at a price of CDN$ 0.60 for CDN $210,000 for a total share purchase quantity of 350,000 shares of Shoreham Resources Ltd. Prior to the second anniversary of Exchange Approval of the Joint Venture Agreement, Mulgravian will be required to exercise the remaining one-third (1/3) of the Warrants at a price of CDN$ 1.20 per share for CDN $210,000 for a total share purchase quantity of 175,000 shares of Shoreham Resources Ltd.
David Bending, M.Sc., P. Geo., President and CEO of Shoreham Resources Ltd., a Qualified Person as defined in National Policy 43-101 ("NI43-101"), is responsible for all technical information contained in this news release. He reports that: "On behalf of the shareholders, I am very pleased to announce the TSX Venture Exchange approval and closing of the placement linked to the Five Star farm - out transaction."
For further information please visit our website at www.shoreham.ca or contact our President and CEO, Mr. David A. Bending at 604-533-9288. Additional details concerning the company's projects and plans are accessible atwww.agoracom.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
