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Press release from CNW Group

Giyani Gold - Escrowed Financing and Rock Island Transaction Update

Tuesday, October 16, 2012

Giyani Gold - Escrowed Financing and Rock Island Transaction Update09:15 EDT Tuesday, October 16, 2012OAKVILLE, ON, Oct. 16, 2012 /CNW/ - Giyani Gold Corp. (TSXV:WDG) ("Giyani Gold") is pleased to announce that it will file today the balance of the documents with the TSX Venture Exchange ("TSXV") which are required in order to obtain TSXV approval to close the Rock Island acquisition transaction and the remaining portion of the concurrent unit offering that is currently held in escrow (the "Unit Offering") (see news releases dated October 6, 2010 and October 25, 2010).  Filed documents are currently being reviewed by the TSXV.With respect to the Unit Offering, Giyani Gold confirms that all shares and warrants to be issued to the subscribers will be issued on the same terms set out in the original subscription agreements and will be subject to a hold period of 4 months from the date of issuance.  In addition, all full warrants will be exercisable at a price of C$0.85 per share for a period of two years from the date of issuance.Pursuant to the closing the Unit Offering, Giyani Gold will issue 9,651,250 common shares in the capital of Giyani Gold to the subscribers together with 4,825,625 warrants to purchase Giyani Gold common shares. The proceeds of the Unit Offering are currently held in escrow subject to the closing of the Rock Island acquisition and upon release will provide Giyani Gold with C$5.79 million in additional funds with approximately C$2.45 million to be used to close the Rock Island acquisition.Closing of the Rock Island acquisition and the Unit Offering remains subject to the filing of the documents required by the TSXV for review and obtaining TSXV approval. Giyani Gold intends to complete the closing of these transactions as soon as possible following receipt of TSXV approval.Additional information and corporate documents may be found on and the Giyani gold website, 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 news release.On behalf of the Board ofGiyani Gold Corp."Duane Parnham"Executive ChairmanForward Looking StatementsThis news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release or other future plans, objectives or expectations of Giyani Gold Corp. are forward-looking statements that involve various risks and uncertainties. Forward looking statements are based on management's current beliefs and expectations, including the assumption that the Rock Island acquisition will complete in a timely manner. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Giyani Gold's plans or expectations include risks relating to any delay in satisfaction of the closing conditions to the Rock Island acquisition or failure to obtain TSXV approval to complete the Rock Island acquisition and Unit Offering, the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Giyani Gold with securities regulators. Giyani Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. SOURCE: Giyani Gold Corp.For further information: Luke Vigeant, Head of Communications  Giyani Gold Corp. Tel: +1.905.844.1456 X237 Email: Chuck Allen, President Giyani Gold Corp. Tel: +1.905.844.1456 X223 Email: