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Ascot Resources Ltd

Friday, December 21st, 2007

Ascot Resources Ltd. is pleased to announce that, further to its press release dated November 27, 2007, it has closed a private placement of 1,500,000 flow-through shares (the “Flow-Through Shares”) and 7,839,600 units (the “Units”) for gross proceeds of $16,719,300. As consideration for acting as agents, the syndicate of agents, which was led by Dundee Securities Corporation and included PI Financial Corp., received a cash commission of $1,170,351 and 653,772 broker warrants. Each broker warrant is exercisable for one common share for two years from the closing date at a price of $2.25.
The Flow-Through Shares were priced at $2.00 per Flow-Through Share. The Units were priced at $1.75 and consist of one common share and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable into one additional common share of the Company for two years from closing at a price of $2.25 per share. However, in the event the daily volume weighted average price of the Company’s common shares on the TSX Venture Exchange is greater than $3.00 per share for a period of 20 consecutive trading days at any time after four months and one day after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
All securities issued pursuant to the private placement are subject to a hold period expiring on April 21, 2008.
The funds will be used to further develop the Company’s Swamp Point sand and gravel deposit, to explore the Company’s Dilworth project and for working capital. The proceeds from the sale of the Flow-Through Shares will be used for exploration expenses that will constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and will be renounced for the 2007 taxation year.
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