Guyana Precious Metals Inc. Announces Closing of Private Placement Financing
to Raise $7,000,000

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

TORONTO, Dec. 13 /CNW/ - Guyana Precious Metals Inc. (TSX-V:GPM) (the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 70,000,000 units ("Units") at a price of $0.10 per Unit, to raise aggregate gross proceeds of $7,000,000.  Each Unit consists of one common share of the Company (a "Common Share") and one share purchase warrant of the Company, each such share purchase warrant entitling the holder thereof to acquire one additional Common Share for a period of 24 months at an exercise price of $0.13 per share.  Insiders of the Company subscribed for an aggregate of 20,800,000 Units in the Offering. 

All of the securities issued and issuable in connection with the Offering are subject to a statutory hold period expiring on April 11, 2011.  The Offering remains subject to the final approval of the TSXV.

In connection with the Offering, Mr. Patrick Sheridan announces that he has acquired ownership of an aggregate of 16,400,000 Units on December 10, 2010, representing approximately 9.4% of the issued and outstanding Common Shares of the Company as at December 10, 2010 (or approximately 17.2% on a partially diluted basis assuming exercise of the Warrants comprising, in party, such 16,400,000 Units only).

Upon completion of the transaction described above, Mr. Sheridan owns and controls an aggregate of 24,959,000 Common Shares of the Company and 21,030,000 convertible securities of the Company, inclusive of the Warrants comprising the Units acquired by Mr. Sheridan in the Offering (collectively, the "Convertible Securities"), representing approximately 14.3% of the issued and outstanding Common Shares of the Company immediately following the Offering (or approximately 23.5% calculated on a partially diluted basis, assuming the exercise of the 21,030,000 Convertible Securities only).

The Units were acquired by Mr. Sheridan in a private placement transaction which did not take place through the facilities of any market for the Company's securities.  This transaction was effected for investment purposes and Mr. Sheridan could increase or decrease his investments in the Company at any time, or continue to maintain his current investment position, depending on market conditions or any other relevant factor.  The Units were acquired by Mr. Sheridan for a purchase price of Cdn$0.10 per Unit for aggregate consideration of $1,640,000.

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.

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 the Company, including, but not limited to the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals. 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.

For further information:

Guyana Precious Metals Inc.
Suite 1205
141 Adelaide Street West
Toronto, Ontario M5H 3L5
Attn: John Patrick Sheridan
Tel: [phone]
Fax: [phone]
E-mail: [email protected]