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Press release from CNW Group

Guyana Goldfields Inc. closes private placement financing with IFC

Tuesday, March 12, 2013

Guyana Goldfields Inc. closes private placement financing with IFC16:47 EDT Tuesday, March 12, 2013/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./TORONTO, March 12, 2013 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company", "Guyana Goldfields"or "GGI") is pleased to announce that it has closed its previously announced private placement financing with the International Finance Corporation ("IFC") of the World Bank Group pursuant to which IFC subscribed for an aggregate of 1,633,335 common shares of the Company (the "Common Shares"), at a price of C$3.40 per Common Share for aggregate gross proceeds of C$5,553,339 (the "Offering").The IFC now holds an aggregate of 6,911,516 Common Shares (or 5.5%) of the Company.The net proceeds of the Offering will be used to fund the development of the Aurora Gold project, for exploration expenditures and for general corporate purposes.  The Offering remains subject to the final approval of the Toronto Stock Exchange.The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.About IFC:IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. For more information, visit www.ifc.org.About Guyana Goldfields Inc.:Guyana Goldfields Inc. is a Canadian based company, focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Company is focused on bringing the Aurora Gold Project into production with infrastructure development currently underway. Active exploration continues at Aurora and at the Company's Aranka Group of Properties with the intention of further expanding these resources. Greenfields exploration by our experienced team of geologists is also ongoing in the broader Aranka group of properties. As at the date hereof, the Company has approximately C$124 million in cash and cash equivalent and no debt; there are approximately 126,125,149 shares issued and outstanding.Forwarding-Looking InformationThis news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GGI to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the final findings set forth in the "NI 43-101 Technical Report, Updated Feasibility Study - Aurora Gold Project" dated January 29, 2013, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; the receipt of applicable regulatory approvals; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although GGI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and GGI disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.SOURCE: Guyana Goldfields Inc.For further information: Guyana Goldfields Inc. Patrick Sheridan CEO Jacqueline Wagenaar Vice President, Corporate Communications Tel: (416) 628-5936 Ext. 2295 Fax: (416) 628-5935 E-mail: jwagenaar@guygold.com Website: www.guygold.com