Forest Gate Closes Additional $120,000 Flow-Through Financing

August 2, 2006 - Montreal, QC - Forest Gate Resources Inc. is pleased to announce that it has successfully closed an additional non-brokered, flow-through private placement for gross proceeds of $120,000.

The company raised $120,000 by issuing 387,096 flow-through shares at $0.31 per share.

Forest Gate previously raised $1,632,975 (July 5, 2006) in flow-through shares at $0.305 per share. This third flow-through financing brings the total raised in this financial quarter to $1,752,975.

The company has agreed to pay certain finder's fees in accordance with the policies of the TSX Venture Exchange.

The flow-through shares have a mandatory hold-period expiring November 27, 2006.

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

Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and Quebec. The company's shares trade under the symbol FGT on the TSX Venture Exchange.