Forest Gate Closes $225,250 Private Placement

August 5, 2004 – Montreal, Qc. – Forest Gate Resources Inc. reports it has closed a private placement of 1,325,000 flow-through shares in a non-brokered private placement.

The offering consisted of one Common flow-through share at $0.17, generating total proceeds to Forest Gate of $225,250. The flow-through shares have a mandatory holdperiod expiring November 30, 2004.

The proceeds from the financing will go towards exploration of the company’s Canadian mineral properties. Forest Gate will pay to a third party a finder’s fee of $18,020 and 132,500 share purchase warrants. (This is the correct amount of warrants payable, not 22,525 as reported in the company’s July 8, 2004 press release.) The warrants are exercisable at $0.17 per share for a period of two years.