Forest Gate Closes $252,000 in Private Placement

October 27, 2004 – Montreal, Qc. – Forest Gate Resources Inc. reports it has closed a private placement of 1,400,000 flow-through units.

The Unit consists of one common flow-through share at $0.18 and one half of a common share purchase warrant. Each whole warrant is exercisable into one non-flow-through common share for a period of two years at a price of $0.23 in the first year and $0.26 in the second year.

This issue generated total proceeds to Forest Gate of $252,000. The flow-through shares have a mandatory hold-period of four months from closing.

The proceeds from the financing will go towards exploration of the company’s mineral properties. Forest Gate paid its agent, Canaccord Capital Corporation, a commission of $20,160 and 140,000 share purchase warrants. The warrants are exercisable at $0.23 in the first year and $0.26 in the second year. Canaccord also received a corporate finance fee totaling 40,000 common shares and 40,000 common share purchase warrants. The corporate finance warrants are exercisable at $0.18 per share for a period of two years.

In other news, Forest Gate’s Vice-President of Exploration, Pieter Du Plessis, arrives in Montreal this Saturday and starts full-time work for the company on Monday morning, November 1. Mr. Du Plessis has already prepared the first part of a comprehensive exploration plan for the East Side diamond property near Prince Albert, Saskatchewan. Forest Gate is still waiting for some of the assay results from the summer drilling program it conducted on its California Lake silver property and Rio Road gold property