Forest Gate Amends Terms of Private Placement; Canaccord Capital Engaged as Agent

October 1, 2004 – Montreal, Qc. – Forest Gate Resources Inc. has amended the terms of the private placement it announced on September 4, 2004, following the engagement of Canaccord Capital Corporation, Vancouver, as agent. In addition to the previously announced compensation relating to the issuance of 1,400,000 flow-through units, Canaccord shall also be paid a corporate finance fee of 40,000 non-flowthrough agent’s units. Each agent’s unit will consist of one share and one warrant, with a warrant to purchase one additional share for a period of two years from the date of closing at $0.18 per share. In other news, Forest Gate announces it has retained Tiger Capital Corporation, Toronto to execute a corporate marketing program consisting of web-based marketing, public relations and investor relations activities. The contract with Tiger Capital is for a period of approximately two months with a renewal option. Tiger Capital will receive $10,000 in cash for the project and 50,000 share options of Forest Gate at a price of $0.17 per share. Also, Forest Gate is expecting that Vice-President Exploration, Pieter Du Plessis, currently residing in Botswana, Africa, will assume his executive duties with the company by mid- October.