RAB Special Situations (fka RAB)

[Ed Monton]

RAB Special Situations L.P./Sargold Resource
Corporation-Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - Oct. 22, 2004) - RAB Special
Situations L.P. ("Special Situations") announces that Special Situations
entered into a Subscription Agreement with Sargold Resource Corporation
(the "Company") where it subscribed for a total of 4,000,000 units of
the Company (the "Units"), at a price of Cdn.$0.30 per Unit (the
"Private Placement"). Each Unit consists of one common share (a "Share")
and one share purchase warrant (each whole warrant being a "Warrant") of
the Company. Each Warrant entitles Special Situations to purchase one
Share for a period of 24 months after closing at a price of Cdn.$0.36
per Share. The transaction took place off the market by way of private
placement and closed on October 19, 2004.

Special Situations has ownership of and control over the securities
purchased in the Private Placement. The purchased securities represent
approximately 20% of the issued and outstanding Shares on a partially
diluted basis (assuming exercise of its Warrants) ("Partially Diluted
Basis").

Immediately after the Private Placement, Special Situations owned
5,666,666 Shares and 4,833,333 Warrants representing approximately 26%
of the issued and outstanding Shares on a Partially Diluted Basis.

Special Situations purchased Units for investment purposes only and not
with the purpose of influencing the control or direction of the Company.
Special Situations together with joint actors, if any, may, subject to
market conditions, make additional investments in or dispositions of
securities of the Company in the future, including additional purchases
of Shares. Special Situations and its with joint actors, if any, do not,
however, intend to acquire 20% of any class of the outstanding voting or
equity securities of the Company.

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FOR FURTHER INFORMATION PLEASE CONTACT:
RAB Special Situations L.P.
Mr. Neil Warrender
(44) 20-7389-7000
[e-mail]
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.