US Gold Provides Mexico & Nevada Exploration Update

Market Wire, May, 2008

US GOLD CORPORATION (TSX: UXG)(AMEX: UXG)(FRANKFURT: US8) is pleased to announce continuing exploration success from the Magistral Mine in Sinaloa State, Mexico. Drilling within the Magistral Mine intersected 0.439 opt (ounces per ton) gold over 40 feet (ft.) (15.03 gpt (grams per tonne) gold over 12.2 meters) within a longer intercept of 0.206 opt gold over 133 ft. (7.04 gpt gold over 40.5 meters). US Gold also wishes to announce that its updated resource estimate for the Tonkin Project in Nevada's Cortez Trend is nearing completion and is scheduled to be released by the end of May.

NEVADA EXPLORATION

An updated resource estimate for the Tonkin Project, which is located in Nevada's Cortez Trend and 10 miles (15.5 km) south of Barrick Gold's Cortez Hills discovery, is expected to be released by the end of May. The updated estimate will incorporate new drilling and geological modeling that was completed between June 2006 and November 2007 and will look to build upon the current 1.4 million ounces of gold resources (Canadian National Instrument 43-101 Measured, Indicated and inferred Resource). Work is also underway on two initial resource estimates for the Gold Bar and Limo properties. These estimates are expected to be completed during the third and fourth quarter.

Now that Nevada's snow has melted and temperatures are rising, US Gold is preparing for its 2008 exploration program. Work that was undertaken during the winter season has outlined numerous areas on Tonkin, Gold Bar and Limo where US Gold geologists believe the current mineralization can be expanded and new discoveries made.

MAGISTRAL MINE UPDATE

Exploration at the Magistral Mine has been focused on three goals. The first is to core drill in the La Prieta higher grade zone in order to confirm previous drilling and to supply additional information that will be used to determine possible mining and processing methods. The second goal is to expand the envelope of existing gold mineralization in order to increase the current resources of 541,000 ounces of gold (Canadian National Instrument 43-101 Measured and Indicated Resource). And the final goal is to locate and explore new veins within the mine area. Our results suggest we have begun to accomplish all three.

1. Confirmation Drilling - La Prieta Vein

0.439 opt gold over 40.0 ft. within 0.206 opt gold over 133.0 ft.

The most significant vein within the Magistral Mine is known as La Prieta. In order to confirm previous exploration results and determine possible mining and processing methods, a limited number of core holes were drilled throughout the zone. US Gold's core drilling successfully confirmed the previous exploration results and the samples will be used to conduct metallurgical studies. Additional testing will also evaluate the rock's competency in order to determine possible underground mining scenarios. Significant results are highlighted below:

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Hole #           Gold         Interval    From    To
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             (opt)   (gpt) (ft.) (meters) (ft.) (ft.)
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MPX-16      0.206    7.04 133.0     40.5   429   562
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Including   0.439   15.03  40.0     12.2   487   527
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Including    1.17   40.20   5.0      1.5   497   502
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MPX-17      0.102    3.51  72.0     21.9   402   474
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Including   0.266    9.12  21.0      6.4   427   448
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MPX-14      0.063    2.17 148.0     45.1   417   565
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Including   0.290    9.92  16.0      4.9   470   486
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(opt equals ounces per ton, gpt equals grams per tonne)

The La Prieta vein, where the high-grade mineralization is located, represents a very small target relative to the whole mine area and adjacent land position. As such, there is adequate area available for similar-size gold deposits to exist elsewhere in or near the mine. Dr. Eric Nelson, a geology professor at Colorado School of Mines, has been employed as a consultant to analyze the structural geological controls in the Magistral district. The objective of his studies will be to help find other zones similar to the high-grade La Prieta resource.

2. Expanding The Known Mineralization

Drilling designed to expand the known mineralization targeted the Samaniego Pit. Percussion drilling successfully extended the mineralization by 170 ft. (52 meters) southeast of the previously planned Samaniego Pit outline (Figure 1). These results are important because the new mineralization was found starting at surface and indicate that the zone remains open. Exploration was performed using a percussion drill with a depth capacity of only 6 meters (19.6 ft) in order to test the area's near surface potential without incurring significant costs. Drilling that will target the potential at depth and to the southeast is ongoing with future drilling planned to the northwest. Results from US Gold's current drilling are highlighted below: