SNIPGOLD CORP V.SGG

RE: financing

[skyhi0]

LET THE DILUTION BEGIN. !

December 11, 2012 SnipGold Proposes $700,000 Financing

NR: 12-22 SnipGold Corp. (TSX-V: SGG) ("SnipGold" or the "Company") (formerly Skyline Gold Corporation) is pleased to announce, subject to TSX Venture Exchange ("TSX-V") approval, a non-brokered private placement of flow-through units ("FT Units") and non-flow-through units ("NFT Units") of the Company for combined gross proceeds of up to $700,000. FT Units: Each FT Unit is priced at $0.20 and will consist of one flow-through common share and one-half of one non-transferable flow-through warrant of the Company. Each whole warrant (a "FT-Warrant") will entitle the holder to purchase one flow-through common share of the Company at $0.30 per share for a period of 24 months after the closing of the private placement. If at any time after four months and one day following the closing of the private placement, the Company's common shares trade on the TSX-V at a closing price of $0.60 per share or greater for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the FT-Warrants by giving written notice to the holders thereof and in such case the FT-Warrants will expire on the 30th day after the date on which such notice is given by the Company. NFT Units: Each NFT Unit is priced at $0.16 and will consist of one common share and one non-transferable warrant of the Company. Each warrant (a "NFT-Warrant") will entitle the holder to purchase one common share of the Company at $0.25 per share for a period of 24 months after the closing of the private placement. If at any time after four months and one day following the closing of the private placement, the Company's common shares trade on the TSX-V at a closing price of $0.50 per share or greater for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the NFT-Warrants by giving written notice to the holders thereof and in such case the NFT-Warrants will expire on the 30th day after the date on which such notice is given by the Company. Fees and Proceeds: Subject to TSX Venture Exchange approval, the Company may pay up to 7% cash finders' fees in connection with the private placement. The flow-through proceeds of the private placement will be used for eligible Canadian exploration expenses and the non-flow-through proceeds will be used for general corporate and administrative purposes as well as other exploration related activities. On Behalf of the Board of Directors SnipGold Corp. John Zbeetnoff, Chief Executive Officer