U.S. Precious Metals Reports 46 Feet of 0.244 oz/t Au and 59 Feet of 0.193 oz/t Au from Historical Drilling at the La Sabila Gold-Copper Project, Michoacan, Mexico

Business Wire, August 28, 2006

LITHIA, Fla. -- U.S. Precious Metals Inc. (USPR-OTCBB) is pleased to report high-grade gold intercepts over substantial thicknesses from drilling by MIM Holdings (now part of Xstrata) in 1997-1998 on USPR's wholly-owned, 16,690-hectare La Sabila gold-copper project in Michoacan, Mexico.

The 21 reverse circulation holes tested a structural corridor extending at least three kilometers north-south which contains multiple NE-trending, vertical to steeply SE-dipping zones of gold mineralization. The drilling, combined with mapping and channel sampling of drill road cuts, identified three major zones of gold mineralization: the Main Zone, estimated by MIM to contain 3 million tonnes of mineralized material grading 3.0 g/t (0.096 oz/t) gold, 20 g/t (0.64 oz/t) silver, and 0.5% copper to a depth of 150 meters; the North Zone, which occurs 300 meters north of and sub-parallel to the Main Zone; and the Cuendao Zone, which lies 2 kilometers to the south of the Main Zone.

Results of the drilling are summarized in the accompanying table.

Hole ID  From   To Interval   Gold    TD  Interval   Gold   Area
           Meters   meters     gpt    m     Feet      opt

SD97-1    18    38    20       4.4   150     66      0.141  Main
          58    60     2       4.7            7      0.151
         122   140    18       6.0           59      0.193

SD97-2    30    46    16       0.7   150     52      0.023  Main
          70    78     8       0.9           26      0.029

SD97-3     0     2     2       3.2   150      7      0.103  Main SE
          22    36    14       7.6           46      0.244
          64    68     4       4.6           13      0.148

SD97-4   158   164     6      10.3   204     20      0.331  Main

SD97-5    38    48    10       0.8   150     33      0.026  Main NW
          98   100     2       4.1            7      0.132

SD97-6                         nil   164                    Main
                                                             reconn
SD97-7   102   136    34       0.8   154    112      0.026  Main
                                                             Tunnels

SD97-8    14    20     6       8.1   172     20      0.260  North

SD97-9    32    34     2       1.3   162      7      0.042  North
          52    54     2       1.4            7      0.045
          62    66     4       2.0           13      0.064

SD97-10   30    32     2       0.9   154      7      0.029  North

SD97-11   54    70    16       0.6   156     52      0.019  Cuendeo

SD98-12                        nil   160                    Main NW
                                                             reconn
SD98-13                        nil   150                    Main NW
                                                             reconn
SD98-14                        nil   180                    Main SW
                                                             Tunnels
SD98-15                        nil   156                    Main SW
                                                             Tunnels
SD98-16                        nil   150                    Main NE
                                                             ext
SD98-17    0    24    24       1.2   152     79      0.038  Main
         116   126    10       2.5           33      0.079

SD98-18   56    68    12       1.7   170     39      0.054  Main
          78    82     4       2.0           13      0.063
         136   138     2       2.6            7      0.084

SD98-19   22    24     2       3.2   124      7      0.104  Main
          52    58     6       6.4           20      0.205
          84    88     4       2.7           13      0.086

SD98-20   56    74    18       1.3   134     59      0.041  Main
          88    98    10       1.6           33      0.051

SD98-21    4     8     4       1.7    24     13      0.053  Main

LA SABILA DRILL HOLE SUMMARY

Holes were drilled on a NW azimuth at inclinations of 55 to 75 degrees (most holes defining mineralization in the Main Zone were drilled at an inclination of 55 degrees to horizontal) in order to intercept the quartz-sulfide veins which strike N40-70E and dip 65 degrees SE to vertical. Thus, true thicknesses of the mineralized zones are approximately 70% to 80% of the apparent thicknesses reported in the table. Samples were collected at 2-meter intervals and submitted to ALS Chemex Labs for gold, silver, and copper assay, as well as for geochemical analysis of a suite of trace elements.

Peter Toscano, Chairman of USPR, stated, "The drilling by MIM demonstrates that significant, high-grade gold mineralization occurs at La Sabila, and only a small portion of the structural corridor has been tested to date." The Company plans to define and drill additional gold targets during the upcoming field season, as well as to expand the existing zones of mineralization which are open along strike and to depth.

About U.S. Precious Metals, Inc:

U.S. Precious Metals, Inc. (USPR-OTCBB) is a gold exploration company operating in Mexico through its wholly-owned subsidiary, U.S. Precious Metals de Mexico. On March 13, 2003, the Company acquired Solidaridad I (175 hectares). On March 27, 2003, USPR acquired the Solidaridad II (2,164 hectares) exploration concession from the Mexican government. On July 22, 2003, the Company acquired the exploration concessions for Solidaridad III, (294 hectares) and Solidaridad IV (149 hectares). On May 25, 2004, the company received the exploration concession from the Mexican government for Solidaridad V (La Ceiba, 921 hectares). In February 2006, USPR claimed a gold mine concession lot named "La Sabila" (12,987 hectares) that surrounds the other concessions, bringing the total area under USPR's control to 16,690 hectares (one hectare equals 2.47 acres).