Mr. Nicholas Koo reports

DIXIE GOLD INC. ANNOUNCES FINANCING

Dixie Gold Inc. intends to conduct a non-brokered common share unit financing consisting of up to three million common share units to be issued at a price of five cents per unit.

Each unit will 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 acquire one additional common share of the corporation at an exercise price of six cents per warrant share on any date prior to the date which is three years following the closing date of the financing or tranche thereunder.

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

The corporation does not intend to pay any finders' fees under the financing.

Insiders (as that term is defined by securities laws) may participate for 25 per cent or more of the financing.

The financing is subject to all applicable regulatory approvals, as well as a customary four-month hold period on securities issued, all as pursuant to applicable securities laws of Canada.

About Dixie Gold Inc.

Dixie Gold is a junior exploration company holding a portfolio of mining-related interests in Canada.

We seek Safe Harbor.