Thorunn Howatt
Northern News Services

Yellowknife (Aug 01/01) - Last week two underwriters agreed to raise up to $4 million for the Hope Bay Gold Corporation Inc.

The agreement in principle with Dundee Securities Corporation and Haywood Securities Inc. is for a best efforts private placement.

The terms of the private placement will have Hope Bay Gold issuing a total of 10 million common flow-through shares at 40 cents each.

The money that is raised will be used to incur Canadian Exploration Expenses mostly at the Hope Bay Gold property in Nunavut.

The private placement remains subject to regulatory approval.

Haywood and Dundee will receive six per cent of the gross proceeds of the private placement for their services as well as broker warrants entitling them to acquire common shares.

The Hope Bay Gold Corporation (HGC) trades on the Toronto Stock Exchange.