TGI.H True Grit Resources Ltd

NEX TRADING SYMBOL - TGI.H VANCOUVER, Oct. 15, 2012 /CNW/ - True Grit Resources Ltd. (the "Company") announces that it intends to proceed with the consolidation of the Company's common shares on a one new for five old (1:5) basis (the "Consolidation").  The shareholders of the Company approved the Consolidation at a special meeting of shareholders held on March 29, 2012, on the basis of the final consolidation ratio being fixed by the board of directors. The Company currently has 15,223,726 issued and outstanding common shares. Pursuant to the Consolidation, each five (5) pre-Consolidation common shares will be consolidated into one (1) post-Consolidation common share. Accordingly, on completion of the Consolidation, the Company will have approximately 3,044,745 shares issued and outstanding. The exact number of post-Consolidation shares will vary depending upon the treatment of fractions which will occur when each shareholder's holdings are consolidated. Outstanding stock options and warrants will similarly be adjusted by the Consolidation ratio. The Company also announces it has arranged a non-brokered private placement to issue up to 5,000,000 Units (on a post-consolidated basis) at $0.15 per Unit to raise gross proceeds of $750,000.  Each Unit consists of one common share and one share purchase warrant.  Each warrant is exercisable into one common share at a price of $0.30 for a two year period.  Proceeds of the offering will be for operating and working capital requirements, and for future business purposes. The Company may pay finders' fees in connection with the private placement pursuant to the policies of the TSX Venture Exchange. The foregoing is subject to regulatory acceptance. On behalf of the Board, TRUE GRIT RESOURCES LTD. Allan W. Williams President and CEO "Neither 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." True Grit Resources Ltd. CONTACT: 615 - 800 West Pender St., Vancouver, B.C. V6C 2V6TELEPHONE: (604) 681-6766 FACSIMILE: (604) 684-0279

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