Forest Gate To Raise $252,000 in Private Placement

Sept 2, 2004 – Montreal, Qc. – Forest Gate Resources Inc. reports it will issue 1,400,000 flow-through units in a non-brokered private placement.

The Unit will consist 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 will generate aggregate 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 Canadian mineral properties. Forest Gate will pay to a third party a finder’s fee of $20,160 and 140,000 share purchase warrants. The warrants are exercisable at $0.18 per share for a period of two years.