Guyana Goldfields Inc. Announces Closing of Over-Allotment Option

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Feb. 23 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) ("Guyana" or the "Company") is pleased to announce that it has closed the previously announced exercise of the over-allotment option by the underwriters and issued an additional 450,000 common shares at $6.95 per share to raise additional aggregate gross proceeds of $3,127,500. Dahlman Rose & Company, LLC and Scotia Capital Inc. acted as co-lead underwriters and book-running managers for the offering along with a syndicate of co-managers including BMO Nesbitt Burns Inc., Cormark Securities Inc., TD Securities Inc., Thomas Weisel Partners Canada Inc., and Paradigm Capital Inc.

The net proceeds of the offering, including the net proceeds from the over-allotment option, will be used to further the previously announced definitive feasibility study undertaken by AMEC, Canada, to continue exploration of the Company's Aurora and Aranka properties in Guyana, South America, and for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

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 Guyana, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing 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.

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For further information: Guyana Goldfields Inc., Jacqueline Wagenaar, Director of Investor Relations, Tel: [phone] Ext.2295, Fax: [phone], E-mail: [email protected], Website: www.guygold.com