La Ronge Gold Announces $5 Million Private Placement Unit and Flow-Through Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - March 13, 2012) - La Ronge Gold Corp. (TSX VENTURE: LAR) ("La Ronge" or the "Company") is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (the "Agent") to sell, on a commercially reasonable efforts basis, a private placement (the "Offering") of the Company's securities to raise gross proceeds of up to $5,005,000, comprised of any combination of:

a. up to 9,100,000 units (the "Units") at a price of $0.55 per Unit to raise up to $5,005,000, and

b. up to 3,080,000 common shares issuable on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.65 per Flow-Through Share to raise up to $2,002,000.

Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable to purchase one common share of the Company for a period of 24 months from closing at an exercise price of $0.70.

The Agent will receive a cash fee on the sale of the Units equal to 7% of the gross proceeds raised, and broker warrants ("Broker Warrants") equal to 7% of the number of Units and Flow-Through Shares sold under the Offering. Each Broker Warrant shall be exercisable to purchase one common share of the Company for a period of 24 months from closing at an exercise price of $0.70.

The proceeds raised under the Offering will be used for exploration and development of the Company's Saskatchewan projects and for general working capital purposes. Completion of the Offering is subject to the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange. Securities issued under the Offering will be subject to a four month hold period from the date of closing.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


La Ronge Gold Corp. is a gold exploration company focusing on the exploration of gold projects in Canada. The Company has acquired projects in Saskatchewan with historical gold ounces and is in the process of bringing those historical gold ounces to the NI 43-101 standards. The Company also holds other gold projects located in Ontario, Canada.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.



Contact Information

La Ronge Gold Corp.
Rasool Mohammad
President & CEO
(604) 639-4533
www.larongegold.com