Linux Gold Corp. Completes $608,250 Private Placement at $0.15 Per Unit

VANCOUVER--(Business Wire)--
Linux Gold Corp. (LNXGF:OTCBB) announced today that the Company
has completed a private placement of common stock and warrants raising
gross proceeds of $608,250. The Company issued 4,055,000 Units,
consisting of one share of restricted common stock of Linux Gold Corp.
and one warrant. Each warrant will enable the investor to purchase one
additional share at an exercise price of US$0.20 per share for a
period of one year from the date of closing.

Funds raised are for exploration, accounts payable and working
capital.

Our current plans are to joint venture and explore our gold
properties in Alaska. Linux Gold Corp. owns 284 State of Alaska mining
claims at several locations near Granite Mountain on the eastern
Seward Peninsula of Alaska. Linux Gold Corp. also owns a 50% interest
in 30 mineral claims known as the Fish Creek Prospect, located in the
Fairbanks Mining Division in Alaska. Linux Gold Corp. optioned a 50%
interest in the Fish Creek claims to Teryl Resources Corp. (TRC-V),
retaining a 5% net smelter return or may convert into a 25% working
interest. Linux has also staked mineral exploration claims covering
6,400 acres in the Livengood-Tolovana Mining District, in the State of
Alaska.

Linux Gold Corp. is looking forward to the joint venture drilling
program, with Teryl Resources Corp., on the Fish Creek gold property
in Fairbanks Gold mining district.

For more information please visit www.linuxgoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"John Robertson"

-0-
*T
John Robertson
President
*T

READER ADVISORY

This news release may contain certain forward-looking statements,
including management's assessment of future plans and operations, and
capital expenditures and the timing thereof, that involve substantial
known and unknown risks and uncertainties, certain of which are beyond
the Company's control. There can be no assurance that such statements
will prove accurate, and actual results and developments are likely to
differ, in some case materially, from those expressed or implied by
the forward-looking statements contained in this press release.
Readers of this press release are cautioned not to place undue
reliance on any such forward-looking statements.

Forward-looking statements contained in this press release are
based on a number of assumptions that may prove to be incorrect,
including, but not limited to: timely implementation of anticipated
drilling and exploration programs; the successful completion of new
development projects, planned expansions or other projects within the
timelines anticipated; the accuracy of reserve and resource estimates,
if any, grades, mine life and cash cost estimates; whether mineral
resources can be developed; title to mineral properties; financing
requirements; changes in laws, rules and regulations applicable to
Linux, and changes in how they are interpreted and enforced, delays
resulting from or inability to obtain required regulatory approvals
and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, and the
United States, industry conditions, increased competition, the lack of
availability of qualified personnel or management, fluctuations in
foreign exchange, stock market volatility and market valuations of
companies with respect to announced transactions. The Company's actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking statements,
including those described in the Company's Financial Statements,
Management Discussion and Analysis and Material Change Reports filed
with the Canadian Securities Administrators and available at
www.sedar.com, and the Company's 20-F annual report filed with the
United States Securities and Exchange Commission at www.sec.gov.
Accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur,
or if any of them do so, what benefits, including the amount of
proceeds, that the Company will derive therefrom.

Readers are cautioned that the foregoing list of factors is not
exhaustive. All subsequent forward-looking statements, whether written
or oral, attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by these cautionary
statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the
Company does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as may
be required by applicable securities laws.

Linux Gold Corp.
John Robertson, 800-665-4616

Copyright Business Wire 2008