Further to the Company's news release of August 31, 1998 announcing that the Company intended to raise up to $500,000 by way of a private placement of 2,000,000 units at $0.25 per unit, the Company announces that it has increased the private placement of 2,200,000 units at $0.25 per unit, each unit consisting of one common share and one non-transferable warrant. One warrant entitles the holder to purchase one additional common share in the capital stock of the Company for a term of one year at a price of $0.30 per share.

The Company has now placed the third and final tranche of the private placement, namely 1,270,000 units for subscription proceeds of $317,500, bringing the total placed to 2,200,000 units for gross subscription proceeds of $550,000. The expiry date of the hold period for the third tranche of 1,270,000 units will be four months from the date of final acceptance by the Vancouver Stock Exchange of this third tranche of units. The net proceeds from the private placement are being used to provide funds for corporate, administrative and exploration purposes.

GERLE GOLD LTD.

Raymond A. Hrkac
President

For more information, contact: Susan de Stein, Corporate Relations at (604) 739-4331 or info@gerle.com

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.