Tagish arranges C$500,000 private placement with, and amends proposed secured debt feasibility finance facility from, Macquarie Bank Ltd.

Tagish Lake Gold Corp. (TSX-V: TLG) ("the Company") further to the Company's news release of September 13, 2006, Tagish has arranged a non-brokered private placement with Macquarie Bank Ltd. for 2,777,777 Tagish common shares at a subscription price of C$0.18 per share for gross proceeds of C$500,000.

In connection with the anticipated proceeds raised from this private placement, the previously announced secured debt feasibility finance facility from Macquarie for the completion of the feasibility study for the Company's Skukum Creek gold-silver project will be amended from C$2.0M to C$1.5M. The feasibility finance facility share purchase warrants announced in the Company's news release of September 13, 2006 will also be reduced from 8 million warrants to 6 million warrants, subject to the acceptance of the TSX Venture Exchange, each warrant entitling the holder to acquire one common share at a price of C$0.25 per share until September 28, 2008.

Completion of the proposed private placement will be subject to the negotiation, execution and delivery of a definitive subscription agreement and subscription funds together with TSX Venture Exchange acceptance of the proposed subscriber and documentation related to the offering.

The secured debt feasibility finance facility and related share purchase warrants remain subject to the negotiation and execution of definitive agreements between the Company and Macquarie, acceptance of the documentation related to the financing and the common share purchase warrants by the TSX Venture Exchange, standard commercial conditions of lending and other technical and due diligence matters related to the Company and the Skukum Creek gold-silver project.

Any securities issued with respect to the either private placement or secured debt feasibility finance facility will be subject to a hold period of four months and one day from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.

About Tagish Lake Gold Corp.

Tagish Lake Gold Corp. explores for and develops high grade gold-silver mineral deposits in the Yukon Territory of Canada. The Company is currently focused on its wholly owned, 178 km2 Skukum Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek gold-silver deposit and the Goddell Gully gold deposit, with a currently defined measured plus indicated resource of 1,120,000 tonnes grading 8.0 g/t Au and 153.1 g/t Ag (MineTech International Ltd., 2003), and the Mt. Skukum gold deposit.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.

This news release includes certain forward looking statements in respect to various issues including upcoming events. These forward looking statements are based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. Mineral exploration is subject to a high degree of risk, which even a combination of experience, knowledge, and careful evaluation may fail to overcome. Exploration activities are also expensive. The Company will therefore require additional financing to carry on its business, and such financing may not be available when it is needed. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.

For further information: visit the Company's website at www.tagishgold.com, or contact: Tagish Lake Gold Corp.: T. Gregory Hawkins, Chairman, (604) 273-6477, Fax: (604) 248-2996, www.tagishgold.com; Renmark Financial Communications Inc.: John Boidman, jboidman@renmarkfinancial.com; Barbara Komorowski, bkomorowski@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com; Should you wish to receive Company news via email, please email investor@tagishgold.com and specify "TLG News" in the subject line.

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