Forest Gate To Raise Up To $1.2 Million in Private Placement

SEPTEMBER 5, 2003, MONTREAL, QC - Forest Gate Resources Inc. (FGT-V) has entered into an agreement with Toronto-based broker, Brawley Cathers Ltd., to execute a private placement, on a best efforts basis, of up to 8 million units and flow-through shares to raise proceeds of approximately $1.2 million.

The unit will consist of one common share at $0.15 and one half of a common share purchase warrant at $0.20. The warrant is effective for 24 months. The flow-through shares are priced at $0.20 per share.

The offering is scheduled to close by September 30, 2003. The underwriter has been granted an over-allotment option enabling it to purchase up to 15% of the number of the units and flow-through shares issued on closing, at a price equal to the issue price. In the event that the option is exercised in its entirety, the aggregate proceeds of the offering will be approximately $1,380,000.

The proceeds from the financing will go towards the further exploration of Forest Gate's diamond property in Saskatchewan and its precious and base metals properties in New Brunswick, as well as for general corporate purposes.