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TORONTO, Nov. 17, 2017 (GLOBE NEWSWIRE) -- Sandy Lake Gold Inc. ("Sandy Lake" or the "Company") (TSX-V:SLAU) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Offering”) pursuant to which issued (i) 3,000,000 units (“Units”); and (ii) 5,000,000 special warrants (“Special Warrants”), each at a price of $0.05 to raise aggregate gross proceeds of $400,000. 

Each Unit consists of one common share of the Company (a “Share”) and one share purchase warrant (a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional Share at an exercise price of $0.10 for a period of 24 months. 

Mr. Patrick Sheridan purchased 5,000,000 Special Warrants in the Offering.  Each Special Warrant will automatically convert into one Unit without any additional payment or action by the holder on the date upon which the Company receives shareholder approval for Mr. Sheridan and his associates to become “control persons” of the Company (within the meaning of the regulations of the TSX Venture Exchange).  The Company proposes to seek such shareholder approval at its next annual meeting of shareholders, by ordinary resolution of the disinterested shareholders.  In the event that such shareholder approval is not approved at the Company's next annual shareholders meeting, the Special Warrants shall automatically convert into a loan repayable to Mr. Sheridan on demand, bearing interest at a rate of 8% per annum.

All proceeds from the sale of both Units and Special Warrants pursuant to the Offering are immediately available to the Company.

Other insiders of the Company also subscribed for an aggregate of 500,000 Units in the Offering. 

All securities issued and issuable in connection with the Offering are subject to a statutory hold period expiring on March 18, 2018.  The Offering remains subject to the final approval of the TSX Venture Exchange.

For further information please contact:

Dan Noone
Interim Chief Executive Officer
(416) 628-5904
Email: info@sandylakegold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and / or accuracy of this release.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Sandy Lake, including, but not limited to dependence upon regulatory and shareholder approvals, the proposed use of proceeds of the Offering and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.