Republic Gold Limited (ASX:RAU) A$2.2M Placement Successfully Completed

Brisbane, May 25, 2010 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) today announced that the Company has completed a placement of 146,666,667 shares at a price of 1.5 cents through Patersons Securities Limited ("Patersons"). The placement raised A$2.2M net of expenses. The response to the placement offering was very positive, despite extremely challenging market conditions. Funds from the placement will be used to progress development of the Company's 1.3Moz Amayapampa Gold Project in Bolivia ("Amayapampa"), its Burraga and Far North Queensland exploration projects in Australia and for ongoing working capital.

Republic's Managing Director; John Kelly, said: "We are encouraged by the positive response for the Company's capital raising activities despite the recent difficult market conditions. The funding will allow us to continue our development and financing activities for the Amayapampa Project in Bolivia, and continue exploration activity over our Australia project portfolio."

"The capital raised will be directed as a priority towards further developing the Company's Amayapampa Gold Project where the Bankable Feasibility Study is nearing completion."

The Company's priority targets for the next few months are:

1. Completion of the Bankable Feasibility Study ("BFS") for Amayapampa over the next 6 weeks.

2. Completion of the study of the cash generating potential of the historic copper tailings at the Burraga Copper Project in NSW.

3. Drilling programme to determine the hard rock potential in the vicinity of the Lloyd's Copper mine at Burraga.

4. Completion of the active drilling programme at the Tregoora Gold Project in FNQ.

For the complete Republic Gold announcement please refer to the following link:

http://www.abnnewswire.net/media/en/docs/62942-ASX-RAU-336765.pdf

Contact

John Kelly Managing Director Republic Gold Limited Tel: +61-7-4092-2594 Mob: +61-418-577-759