Gold Reach Resources Ltd.
888 - 700 West Georgia St.
Vancouver, BC  V7Y 1G5
(the "Company")

NEWS RELEASE

August 16, 2006

VANCOUVER, BRITISH COLUMBIA August 16, 2006 The Board of Directors of Gold Reach Resources Ltd. (the “Company”) have negotiated a non-brokered private placement of 8.0 million flow-through units, (the “Flow-Through Units”) 2.0 million non flow-through units (the “Non Flow-Through Units”), each at a subscription price of $0.08.

The Non Flow-Through Units will consist of one common share and one non-transferable share purchase warrant exercisable on the basis of one warrant in exchange for one common share at a price of $0.10 for a period of one year.

The Flow-Through Units will consist of one flow-through share and one non-transferable share purchase warrant exercisable on the basis of one warrant in exchange for one common share at a price of $0.12 for a period of one year.

A 10% finders fee in units and warrants will be payable in connection with this offering.

The preceding transaction is subject to TSX prior acceptance.

ON BEHALF OF THE BOARD OF DIRECTORS

Jim Pettit, Director

For further information, please contact:

Doug Kerr
Gold Reach Resources
Telephone: 604-718-5454
Toll Free 888-500-4587
Facsimile: 604-646-2054
Email: doug@goldreachresources.com
Web: www.goldreachresources.com

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Safe Harbour Statement: The Company relies upon litigation protection for “forward-looking statements”.