REUNION GOLD ANNOUNCES CLOSING OF TRANCHE 1 OF PRIVATE PLACEMENT FOR $3,145,000; SIZE OF FINANCING INCREASED TO $5,250,000

Not for distribution to United States newswire services or for dissemination in the United States.

May 28, 2010. Longueuil, Qu?bec - Reunion Gold Corporation (TSX-V: RGD) ("Reunion" or the "Company") is pleased to announce that it has closed a first tranche of the non-brokered private placement announced on May 7, 2010 (the "Financing"). The Company has issued 31,450,000 units ("Units") at a price of $0.10 per Unit for gross proceeds of $3,145,000. Each Unit consists of one common share of Reunion and one common share purchase warrant ("Warrant"). Each Warrant may be exercised for one additional common share at a price of $0.20 per common share for a period of 24 months, subject to the Company's right to accelerate the Warrant exercise. Insiders of the Company purchased an aggregate of 2,225,000 Units. No finder's fees or commissions were paid in connection with the Financing.

In response to demand from investors, the Company has increased the size of the Financing from $5,000,000 to $5,250,000. The increase received the conditional approval of the TSX Venture Exchange ("TSXV") on May 27, 2010. The Company expects to close the balance of the increased Financing within the next two weeks.

Pursuant to applicable Canadian securities laws, the common shares and warrants issued to subscribers under the Financing are subject to a four-month hold period from the time of each applicable closing under the Financing. The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the final approval of the TSXV.

The Company intends to apply the net proceeds raised from the Financing for general working capital including but not limited to funding the Company's general and administrative expenses and providing a reserve for asset acquisition.

Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website at www.reuniongold.com.

.

Forward-Looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the Company's plans to complete the balance of the private placement on the terms announced and the possibility of acquiring new assets. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

For further information please contact: