Mr. Nicholas Koo reports

DIXIE GOLD INC. ANNOUNCES FINANCING

Dixie Gold Inc. intends to conduct a non-brokered financing to consist of up to five million common share units.

Units under the financing will be issued at a price of five cents per unit and each unit shall consist of one common share of the corporation and one common share purchase warrant that entitles the holder of a warrant, upon further payment to the corporation, to purchase one additional common share of the corporation at an exercise price of five cents per warrant share on any date prior to the date that is 60 months following the closing date of the financing or tranche thereunder.

The corporation intends to use the proceeds of the financing for working capital purposes.

Dixie Gold may pay a 6-per-cent cash finder's fee on certain subscriptions under the financing, which excludes cash finders' fees on subscriptions by insiders (as that term is defined by securities laws), who may in turn participate for greater than 25 per cent of the financing.

If completed, either in part or in whole, the financing shall be subject to all applicable regulatory approvals as well as a customary four-month-and-one-day hold period on securities issued thereunder (pursuant to the applicable securities laws of Canada).

About Dixie Gold Inc.

Dixie Gold is a publicly traded exploration company holding a portfolio of exploration projects in Canada.

We seek Safe Harbor.