Corona Gold Corporation - Rights Offering

TORONTO, Sept. 8 /CNW/ - Corona Gold Corporation (the "Company")      
(TSX - CRG) announces that it has finalized the terms of a proposed rights
offering ("Offering").
The Company will be offering to eligible holders of its outstanding
common shares of record at the close of business on September 16, 2005 (the
"Record Date") rights ("Rights") to subscribe for additional common shares on
the terms set forth in a rights offering circular (the "Circular") to be
mailed by the Company to shareholders. The Circular will also be available on
SEDAR. Each such holder will receive one Right for each common share held on
the Record Date. Four Rights will entitle the holder to purchase one common
share of the Company at a price of Cdn$0.25. The Toronto Stock Exchange has
approved the Rights for trading effective at the opening of the market on
September 14, 2005 and has listed the common shares issuable on exercise of
the Rights. The Rights will expire on October 13, 2005. Shareholders who
exercise all of their Rights will also be entitled to acquire additional
shares pursuant to an additional subscription privilege to be provided for
under the Offering, the terms of which are described in the Circular.
Dundee Corporation, the Company's largest beneficial shareholder, has
made a stand-by commitment pursuant to which it has agreed to acquire all
common shares issuable on the exercise of Rights not acquired by other Rights
holders.
The Rights and underlying common shares are not being offered to, and the
Rights may not be exercised by, persons who are residents of any jurisdiction
other than the Provinces of British Columbia, Alberta and Ontario. Reference
is made to the section in the Circular entitled "Ineligible Shareholders".
Gross proceeds of the Offering will be approximately $910,000. The
Company intends to use the proceeds of the Offering (after payment of the
expenses of the Offering) to pursue and evaluate new resource projects and for
general corporate purposes.

%SEDAR: 00012331E