US Gold Corporation: Drill Results Continue to Shine in Mexico's Magistral District

Market Wire, August, 2008

US GOLD CORPORATION (TSX: UXG)(AMEX: UXG)(FRANKFURT: US8) announces that exploration results in the Magistral District, located in Sinaloa State, Mexico, continue to show that the mineralization has excellent growth potential. Drilling at the Palmarito Project intersected 10.2 ounces per ton (opt) silver equivalent (eq.)(i) over 70 feet (ft.) (349.2 gpt (grams per tonne) silver eq. over 21.3 meters), including 15.7 opt silver eq. over 30 ft. (538.6 gpt silver eq. over 9.1 meters). Also, drilling at the new Dos Amigos vein returned 0.21 opt gold over 35 ft. (7.1 gpt gold over 10.7 meters), including 1.2 opt gold over 5 ft. (42.2 gpt gold over 1.5 meters).

"We are in a market where the share prices of junior exploration companies are in a free fall. I am confident this trend will reverse and when it does I believe the move to the upside will be rapid. The key factors for higher prices will be increasing merger and acquisition activity led by well financed producers, higher precious metals prices and a big discovery. Once investors believe they can make money buying junior explorers, such as US Gold, the share prices should start moving higher. I believe this summer represents a great buying opportunity," stated Rob McEwen, Chairman and CEO of US Gold.

US GOLD EXPLORATION PROGRAM

US Gold's exploration is focused on two fronts. First, we continue to explore for Nevada's next Cortez Hills gold deposit. Our drill program there is now underway. Second, in Mexico we are trying to grow two key deposits in the Magistral District, the Magistral Mine and Palmarito Project. With only 7.5 miles (12 km) separating these projects, US Gold's objective is to combine them into a single operation and move them towards production.

(i) Converting gold grades into silver equivalent (3 Year Average Gold:Silver US$ Price Ratio equals 53:1)

MEXICO EXPLORATION

PALMARITO PROJECT

RICHER SILVER-GOLD VEINS AT DEPTH

The first five reverse circulation (RC) holes from phase two drilling successfully extended the silver-gold mineralization down-dip of the "Main Zone" (Figure 1 & 2). Results from the Main Zone released earlier this year included 9.3 opt silver over 44.9 ft (319.6 gpt silver over 13.7 meters) and 4.1 opt silver over 80 ft. (139.7 gpt silver over 24.4 meters). Highlights from recent drilling are listed below:

Hole#       Silver            Gold     Silver      From      To     Length
-----       ------            ----       Eq(i)     ----      --     ------
                                       ------

              (opt)           (opt)      (opt)     (ft.)   (ft.)      (ft.)

PMX-16         9.6            0.01       10.2       555     625         70
Including     14.5            0.02       15.7       590     620         30
Including     18.2            0.03       19.9       610     615          5

PMX-18         3.4  Less than 0.01        3.7       470     540         70
Including      6.0            0.01        6.5       490     515         25

PMX-21         2.9            0.01        3.3       195     275         80
Including     17.1            0.01       17.8       250     255          5

PMX-17         3.1               -        3.1       635     655         20

PMX-20         2.9               -        2.9       280     300         20
And            3.5               -        3.5       345     350          5


Hole#       Silver            Gold     Silver     From     To     Length
-----       ------           -----      Eq.(i)    ----     --     ------
                                       ------

              (gpt)           (gpt)      (gpt)      (m)    (m)        (m)

PMX-16       328.5            0.39      349.2    169.2  190.5       21.3
Including    497.8            0.77      538.6    179.8  189.0        9.1
Including    624.0            1.10      682.3    185.9  187.5        1.6

PMX-18       117.6            0.16      126.1    143.3  164.6       21.3
Including    205.6            0.34      223.6    149.4  157.0        7.6

PMX-21       101.0            0.23      113.2     59.4   83.8       24.4
Including    585.0            0.45      608.9     76.2   77.7        1.5

PMX-17       107.7               -      107.7    193.5  199.6        6.1

PMX-20        98.9               -       98.8     85.3   91.4        6.1
And          120.0               -      120.0    105.2  106.7        1.5

The RC holes successfully extended the vertical depth of the mineralization by approximately 75 ft. (23 m) to 655 ft. below surface and expanded the width of the zone by 150 ft. (45 m). Hole PMX-16 is the furthest step-out completed to the northeast and subsequently the best hole (grade multiplied by width) drilled to date at the project. This hole intersected 10.2 opt silver eq. over 70 ft (349.2 gpt silver eq. over 21.3 m), including 15.7 opt silver eq. over 30 ft. (538.6 gpt silver eq. over 9.1 m), demonstrating that there is considerable room for possible expansion of the mineralization. Results from US Gold's internal assay lab indicate that the mineralization continues to at least 765 ft. (233 m) below surface and remains open in all directions. Assays from ALS Chemex for this additional hole are pending. Current drilling is targeting the Main Zone at depths greater than 1,000 ft. (300 m).