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 of $0.25 per unit, the Company announces that it has now placed a second tranche of 530,000 additional units for subscription proceeds of $132,500 bringing the total placed to 930,000 units for gross subscription proceeds of $232,500. The expiry date of the hold period for the second tranche of 530,000 units will be four months from the date of final acceptance by the Vancouver Stock Exchange of this second tranche of units. The Company is closing the private placement of 2,000,000 units in tranches as subscription amounts of at least $50,000 are received. The net proceeds from the private placement are being used to provide funds for corporate and administrative purposes. The Company will continue placing the balance of 1,070,000 units until they are subscribed in full or until November 29, 1998, whichever is the earlier.

GERLE GOLD LTD.

Raymond A. Hrkac
President

For 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.