US Gold Corporation: Mexico Exploration Update

Market Wire, July, 2008

US GOLD CORPORATION (TSX: UXG)(AMEX: UXG)(FRANKFURT: US8) announces that recent drilling at the Magistral Mine, located in Sinaloa State, Mexico continues to encounter encouraging gold mineralization. Drilling designed to expand the mineralization around the Samaniego Pit returned 0.199 ounces per ton (opt) gold over 49.2 feet (ft.) (6.81 gpt (grams per tonne) gold over 15.0 meters), including 0.580 opt gold over 9.8 ft. (19.90 gpt gold over 3.0 meters). Also, drilling at the new Dos Amigos vein returning 0.397 opt gold over 19.7 ft. (13.63 gpt gold over 6.0 meters). Mineralization in both holes started at surface.

"Our positive exploration results from Magistral and the nearby Palmarito Project are clearly demonstrating the area's potential. Our objective in Mexico is to quickly grow the size of these projects in order to determine the optimum rate of production," stated Robert McEwen, Chairman and CEO of US Gold.

MAGISTRAL MINE UPDATE

The exploration program at the Magistral Mine continues to successfully achieve its goals of expanding the mineralization and discovering new veins within the mine area.

1. Expanding the Mineral Zone

Samaniego Pit Area

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/samaniego-pit.pdf

Exploration continued to target the area around the Samaniego Pit. Since US Gold's last update, an additional 6,600 ft (2,000 meters) of drilling has been completed. Deeper conventional rotary holes have been focused on extending the mineralization at depth.

These deeper holes successfully extended the known mineralization with the best assay result being hole SWBH08-163 that returned 0.199 opt gold over 49.2 ft. (6.81 gpt gold over 15.0 meters). The deepest hole to encounter mineralization was SWBH08-161, which intersected 0.027 gold over 118.1 ft. (0.93 gpt gold over 36.0 meters). Mineralization in both holes started from surface.

Drilling appears to have intersected the upper portion of the main southwest-dipping vein that controls the gold mineralization inside of the Samaniego Pit. US Gold geologists believe there is good potential to intersect additional gold mineralization north and south of the current drilling (Figure 1). Highlighted results are listed below:

Table 1. Samaniego Significant Drill Assay Results

                                 Assay Interval

Hole #         Gold Grade   From     To     From       To  Intercept Length
------         ----------   ----     --     ----       --  ----------------

             (opt)   (gpt)  (ft.)  (ft.) (meters) (meters)  (ft.)   (meters)

SWBH08-163  0.199    6.81    0.0   49.2      0.0     15.0   49.2       15.0
Including   0.580   19.90    0.0    9.8      0.0      3.0    9.8        3.0

SWBH08-159  0.082    2.81    9.8   88.6      3.0     27.0   78.7       24.0
Including   0.276    9.46    9.8   29.5      3.0      9.0   19.7        6.0

SWBH08-161  0.027    0.93    0.0  118.1      0.0    36.00  118.1       36.0
Including   0.102    3.50   29.5   49.2      9.0    15.00   19.7        6.0

SWBH08-121  0.074    2.54    9.8   49.2      3.0    15.00   39.4       12.0
Including   0.192    6.58   39.4   49.2     12.0    15.00    9.8        3.0

SWBH08-165  0.058    1.99    0.0   39.4      0.0     12.0   39.4       12.0
Including   0.189    6.48    9.8   19.7      3.0      6.0    9.8        3.0

SWBH08-125  0.047    1.62    0.0   39.4      0.0     12.0   39.4       12.0

SWBH08-140  0.031    1.07    0.0   59.1      0.0     18.0   59.1       18.0

SWBH08-128  0.036    1.23    0.0   39.4      0.0     12.0   39.4       12.0

SWBH08-130  0.032    1.08   19.7   88.6      6.0     27.0   68.9       21.0
Including   0.092    3.17   19.7   39.4      6.0     12.0   19.7        6.0

2. New Vein Intercepts 0.397 opt gold over 19.7 ft.

US Gold's team in Mexico continues to identify new veins with good potential. The Dos Amigos vein, which had never before been drill tested, has returned encouraging results (Figure 1). The best result from this area was 0.397 opt gold over 19.7 ft (13.63 got gold over 6.0 meters).

Dos Amigos is located approximately 1,500 ft (455 meters) northeast of Samaniego and is the second vein outside of the current resource estimate (Canadian National Instrument 43-101: Pincock, Allen & Holt 2006) that has returned good values since exploration began in January. The first vein, Cerritos, which was announced in May, returned 0.034 opt gold, 1.29 opt silver, 0.4% copper and 0.4% zinc over 39.4 ft. (1.16 gpt gold, 44.33 gpt silver, 0.4% copper and 0.4% zinc over 12.0 meters).

Exploration at Dos Amigos was performed using a conventional rotary drill with a limited depth capacity of 6 meters (19.7 ft) in order to quickly and cheaply test the near surface potential of the area (the drill was formerly used for production planning when Magistral was in operation). A total of 1,100 ft. (335 meters) of drilling has been completed. Ongoing exploration is now targeting the potential at depth and along strike. Highlights from Dos Amigos are listed below: