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

US Gold's field prospecting around Palmarito has identified a new area with intriguing results. The prospect is situated approximately 3 miles (5 km) north of Palmarito in an area where historic mining is known to have taken place. Limited surface sampling has been conducted, the best result to date is stated below:


    Silver             Lead            Zinc         Copper          Gold
    ------             ----            ----         ------          ----

(opt) (gpt)   (%)  (lbs/ton)   (%) (lbs/ton)  (%) (lbs/ton)   (opt) (gpt)

44.9  1540  51.4       1028   5.1       102  1.2        24   0.057  1.95

Additional sampling is underway to identify targets for drill testing in the coming weeks.

DOS AMIGOS VEIN - 0.21 OPT GOLD OVER 35 FT.

GOOD GOLD GRADES, NEAR SURFACE

Dos Amigos is a newly discovered vein within the Magistral Mine property. The objective of US Gold's conventional rotary drilling was to delineate the zone of near surface gold mineralization in order to begin RC drilling for inclusion of mineralized zones into Magistral's resource estimate. This was successfully accomplished. Significant results are stated below:


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

                  (opt) (ft.) (ft.)   (ft.)       (gpt)   (m)   (m)     (m)

DABHA08-206       0.21     5    40      35         7.1   1.5  12.2    10.7
Including          1.2    30    35       5        42.2   9.1  10.7     1.5

DABHA08-195       0.21     5    25      20         7.2   1.5   7.6     6.1
Including         0.71     5    10       5        24.3   1.5     3     1.5

DABHA08-205       0.16     0    35      35         5.5     0  10.7    10.7
Including         0.25     0    20      20         8.6     0   6.1     6.1

DABHA08-207       0.08    10    60      50         2.6     3  18.3    15.2
Including         0.24    20    30      10         8.3   6.1   9.1     3.0

DABHA08-210       0.05     0    40      40         1.7     0  12.2    12.2
Including         0.21    15    20       5         7.2   4.6   6.1     1.5

DABHA08-197       0.04     0    50      50         1.4     0  15.2    15.2

DABHA08-194       0.08    10    30      20         2.7     3   9.1     6.1

DABHA08-208       0.04     5    40      35         1.2   1.5  12.2    10.7

DABHA08-211       0.07    10    25      15         2.4     3   7.6     4.6

SAN RAFAEL PIT AREA - 0.12 OPT GOLD OVER 30.0 FT.

NEW EXPLORATION POTENTIAL

The San Rafael Pit (Figure 3) was the primary source of Magistral's past gold production, with approximately 50,000 ounces produced from this area. Previous operators believed that San Rafael had limited exploration potential; however, US Gold's initial conventional rotary drilling is demonstrating that there is still more gold to be found.

Drilling from inside the pit returned a best intersection of 0.12 gold over 30.0 ft. (4.1 gpt gold over 9.1 m) and has established a strike length of approximately 325 ft. (100 m). US Gold's geologists believe that the gold mineralization is part of a north-south fault. Historic mine plans dating from 1950 help support this interpretation. Highlights from San Rafael include: