10/03/2005- $1,500,000 Flow-Through Financing

[Franko10 ™]

Forest Gate Closes $1,500,000 Flow-Through Financing


14:43 EDT Monday, October 03, 2005

MONTREAL, Oct. 3 /CNW/ - Forest Gate Resources Inc. is pleased to announce that it has successfully closed its previously announced (August 23, 2005 and increased on September 21 and 28, 2005) flow-through private placement in the amount of $1,500,000. Northern Securities Inc. acted as agent for the financing.

The company raised $1,500,000 by issuing 3,947,368 flow-through shares at $0.38. Northern Securities and members of the selling group received a 9% commission amounting to $134,999.98 and also received 355,263 broker warrants, with each broker warrant exercisable into one common share of Forest Gate at an exercise price of $0.38 until September 30, 2007.

The certificates for the 3,947,368 flow-through shares bear a legend confirming that they cannot be traded until January 30, 2006.

The gross proceeds of the flow-through financing will be used for exploration on the Portage property located in the Otish Mountain region of Quebec. Forest Gate has the right to earn a 50% interest on the Portage property from Majescor Resources Inc. after having spent $5 million dollars by 2009 and can also earn an additional 5% interest by funding a 200-tonne bulk sample from a kimberlite body.

In other news Forest Gate Resources Inc. also announced that it has entered into an additional non-brokered financing of flow-through shares by way of a private placement of $50,000. This additional financing will involve one investor in Quebec and is anticipated to close this week. The additional flow-through shares in the non-brokered private placement will be priced at $0.38 per share, the same price as the flow-through private placement for $1,500,000 in which Northern Securities acted as agent.

Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and Quebec. The company's shares trade under the symbols FGT on the TSX Venture Exchange.

Forward-Looking Statements

This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.

The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this news release.

For further information: PLEASE CONTACT: ROBERT KRAMBERGER, SHAREHOLDER RELATIONS & CORPORATE MARKETING, FOREST GATE RESOURCES INC., [phone], [e-mail], http://WWW.FORESTGATE.CA; OR TREVOR BURNS, PRESIDENT, TIGER CAPITAL CORPORATION, TORONTO, ONTARIO, [phone], [e-mail]