Uragold Share Consolidation Approved by Shareholders and Uragold Announces a Non Brokered Private Placement

Tue Jun 26, 2012 3:10pm EDT

* Reuters is not responsible for the content in this press release.

Uragold Bay Resources Inc (TSX VENTURE:UBR) is pleased to announce that
shareholders, at the Special Annual Meeting of Shareholders held on June
19, 2012 have approved the proposed consolidation of its common shares.
The consolidation was approved by 81% of the 58,001,921 million shares

    The Board of Directors of the Corporation, at its discretion, has the
mandate to amend the Articles of the Corporation so that the issued and
outstanding common shares of the Corporation be consolidated on the basis
of one (1) post-Consolidation Common Share for every four (4)
pre-Consolidation Common Shares (the "Consolidation Ratio") no later than
nine (9) months from the date of the shareholders' approval.

    The Consolidation would currently reduce the Corporation's 168,990,532
issued and outstanding Common Shares to approximately 42,247,633 Common
Shares. The number and exercise or conversion price of outstanding stock
options and warrants will be proportionately adjusted based upon the
Consolidation Ratio. 

    Contemporaneously with the consolidation, the company has arranged a
non-brokered private placement for a total placement of up to
$250,000.00. Investors and Directors of the Corporation have already
committed $125,000 for this placement. This will result in sale of up to
3,125,000 units (Units) at a post consolidation subscription price of
$0.08. Each Unit being comprised of 1 common share and 1/2 common share
purchase warrant (the Warrants") of the Company. Each Warrant will
entitle the holder thereof to purchase one common share of the capital
stock of the Company at an exercise price of $ 0.10 during a period of 24
months from the date of closing of the placement. Each share issued
pursuant to the placement will have a mandatory four (4) month holding
period from the date of closing of the placement. The placement is
subject to standard regulatory approvals. 

    Proceeds of the placement will be used to finalize the Beauce Placer bulk
sampling permits and more importantly to pay a judgment obtained against
the Corporation of an amount of $75,320 (Judgment, Fees tax and Interest
included), from this amount the Corporation is allowed to claims its
expert fees (this amount is still under contention), in the matter of the
Minexco claims versus Uragold Bay. Had the Corporation not defended
itself and won many points in contention, the total cost (Judgment, tax,
fees and interest) that could have been incurred by the Corporation would
have exceeded $600,000.

    Other subject from the AGM:

    Shareholders have also voted in favor of the election of the directors
nominated in the corporation's circular. However, due to personal
matters, Mr Richard Mimeau, has informed the chairman, the he cannot hold
the charge as a director of the Corporation. Therefore the shareholders
elected the remaining five nominees as directors of the Corporation.

    About Uragold Bay Resources Inc.

    Uragold Bay Resources is a junior exploration company trading on the TSX
Venture Exchange under the symbol UBR. Uragold holds gold properties in
Southern Quebec's Appalachian belt and also holds the Asbury Graphite
Mine property in the Laurentians of Quebec. The properties benefit from
extensive historical exploration work and from well-established
infrastructure thereby helping to reduce exploration risks. Uragold's
business model focuses on developing, a series of potential small scale
low-cost mining operations for their potential in generating cash flow
while simultaneously exploring core properties that hold the potential
for the discovery of blue sky gold deposits like the MacDonald project.

    Shares outstanding: 168,990,532

    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 or accuracy of this release.

Bernard J. Tourillon
Chairman and CEO
(514) 846-3271

Patrick Levasseur
President and COO
(514) 846-3271

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