US Gold News Release

US GOLD CORPORATION (TSX: UXG)(AMEX: UXG)(FRANKFURT: US8) wishes to notify investors that its May 20(th), 2008 news release describing the Company's updated audited resource estimate for the Tonkin property has been clarified below in accordance with Canadian National Instrument 43-101 and separately describes each of the categories of mineralization. US Gold's previous news release had grouped certain mineral categories. No material changes have been made to the resource estimate. The estimate is calculated based on a gold price of US$575 per ounce. Highlights are listed below:

2008 TONKIN RESOURCE HIGHLIGHTS

Related Results

- Measured and Indicated resource estimate increased to 1,447,000 ounces of gold at a grade of 0.041 opt (1.40 gpt) from 1,266,000 ounces of gold at a grade of 0.043 opt (1.47 gpt) and;

- Inferred resource estimate increased to 311,000 ounces of gold at a grade of 0.033 opt gold (1.13 gpt) from 153,000 ounces of gold at a grade of 0.044 opt (1.51 gpt).

- New geological understandings and resource modeling have outlined important areas where the current resource has significant potential to grow in size.

- Preliminary metallurgical studies using Newmont Mining's N2TEC patented technology have demonstrated encouraging gold recoveries, significantly enhancing the project's potential.

Tonkin Project

Cortez Trend, Nevada USA

The Tonkin Project is located in Nevada's Cortez Trend and 10 miles (16 km) south of Barrick Gold's large Cortez Hills discovery. Since last reported in 2006, the total Measured and Indicated resource has increased by 14% to 35.6 million tons at a grade of 0.041 opt (1.40 gpt) and the inferred category has increased by 103% to 9.3 million tons at a grade of 0.033 opt (1.13 gpt) (Table 1) (Figure 1). The cutoff grade used for both estimates was 0.018 opt gold (0.6 gpt gold).

The mineral resource estimate is comprised of three separate deposits referred to as North, Central and South. US Gold's drilling has successfully expanded the size of each deposit and our work indicates there remains significant potential for additional growth (Figure 2).

In addition to increasing the size of the estimated resource and outlining expansion areas, exploration has successfully increased the confidence level in grade and continuity of mineralization. This is highlighted by a 366% increase (820,000 gold ounces versus 176,000 gold ounces) in the total ounces within the measured category. This information is important because US Gold's additional drilling underscores the consistency of grade and predictability of mineralization and will help aid future exploration and possible mine planning scenarios.

Tonkin 2008 Exploration

During the winter season US Gold's geological team worked with Ore Reserve Engineering, the author of the new NI 43-101 resource estimate. The team also worked with Diagnos Inc., a leader in artificial intelligence, with the goal of indentifying areas where there is potential to make a new discovery similar in size and grade to Barrick's Cortez Hills gold deposit and also to expand the lateral and vertical extension of known mineralization (Figure 2).

Based on this work and new geological modeling, US Gold believes there is significant potential to further increase the size of the current resource estimate. With the heavy snow now melted in Nevada, US Gold is preparing to resume its exploration drilling activities at Tonkin, Gold Bar and Limo.

Early Metallurgical Studies

Positive Results

Tonkin previously produced approximately 30,000 ounces of gold from 1985-1989. Production ceased due to poor gold recovery from ore mined in the "Upper Zone".

As a result of detailed geological studies performed on the Tonkin Project by US Gold, three distinctive zones of gold mineralization have been identified. The level of sulphidation present in each of the zones varies considerably, thus requiring various processing techniques. During the winter season, SGS Lakefield Research performed preliminary metallurgical test work in order to help determine the applicable gold recovery rates using alternative processes.

The "Upper Zone" underwent several tests with Newmont Mining's N2TEC patented technology showing the best gold recoveries. The initial results were significantly higher than those experienced using traditional floatation methods and US Gold is encouraged about the potential economic impact. Due to the preliminary nature of the tests, additional work will be undertaken in an effort to validate and further enhance the results.

The complete NI 43-101 Technical Report, including methodologies and resource descriptions and discussions can be found on www.usgold.com or on SEDAR www.sedar.com .

ABOUT US GOLD

US Gold Corporation is a United States based gold exploration company exploring throughout northeastern Nevada and has recently begun exploration in Mexico. The Company has large land holdings and a strong treasury. US Gold's shares trade on the American and Toronto Stock Exchanges under the symbol UXG.

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