Forest Gate Closes Additional $593,000 Flow-Through Financing

July 5, 2006 - Montreal, QC - Forest Gate Resources Inc. is pleased to announce that it has successfully closed an additional non-brokered, flow-through private placement in the amount of $593,600.

The company raised $593,600 by issuing 1,946,230 flow-through shares at $0.305 per share.

Forest Gate previously raised $1,039,375 (May 29, 2006) in flow-through shares at $0.305 per share. This second flow-through financing brings the total raised in this financial quarter to $1,632,975.

The certificates for the 1,946,230 flow-through shares bear a legend confirming that they cannot be traded prior to November 7, 2006.

The gross proceeds of the flow-through financing will be used to further develop the company's Canadian diamond exploration projects.

As previously reported in the July 4, 2006 press release, the company has collared the first hole on its South Side Property in Saskatchewan. The 3000-metre drill program is designed to test 10 anomalies south of the Saskatchewan River that lie on-trend with the massive Fort a la Corne kimberlite field.