US Gold: Exploration News Release

US GOLD CORPORATION (TSX: UXG)(AMEX: UXG)(FRANKFURT: US8) announces that drilling within the Magistral District, located in Sinaloa State, Mexico continues to expand the mineralization at the Magistral Mine and Palmarito Project.

MAGISTRAL DISTRICT EXPLORATION HIGHLIGHTS

- La Prieta Zone returned 0.10 ounces per ton (opt) gold over 60 feet (ft.), (3.26 gpt (grams per tonne) over 18.3 m) including 0.30 opt gold over 10 ft. (10.33 gpt gold over 3.0 m). Drilling this year has successfully expanded the zone 100 ft. (30 m) to the southwest.

- Deepest hole drilled at Palmarito intersected 5.6 opt silver equivalent (eq.)(i) over 65 feet (ft.) (191.4 gpt silver eq. over 19.8 meters), including 13.6 opt silver eq. over 15 ft. (464.7 gpt silver eq. over 4.6 meters). The vertical extent of the zone has been expanded a total of 344 ft. or 80% this year to 760 ft. (232 m) below surface.

- New Dos Amigos vein continued to deliver good results. Best result from recent drilling included 0.17 opt gold over 30 ft. (5.9 gpt gold over 9.1 meters), including 0.54 opt gold over 5 ft. (18.4 gpt gold over 1.5 meters).

"Our results are clearly demonstrating the area's potential. It is great compliment to US Gold's Nevada exploration. I am pleased the progress we have made in Mexico, where we have set an initial goal of increasing the total resource to 1.0 million ounces of gold from its current 541,000 ounces by spring 2009," stated Rob McEwen, Chairman and CEO of US Gold.

(i) converting gold grades into silver equivalent grades (3 Year Average Gold:Silver Ratio equals 53:1)

MAGISTRAL DISTRICT

US Gold controls a large land position within the Magistral District, totaling over 530,000 acres. The two key areas where US Gold is exploring include the Magistral Mine and the Palmarito Project, which are located 7.5 miles (12 km) apart (Figure 1). Numerous areas exist within the district where historic mining occurred but little modern exploration has been conducted.

The key host rock for gold and silver mineralization within the area is andesite, which has been extensively mapped throughout US Gold's property. With a large land position and favorable geology, US Gold likes the odds of making additional discoveries.

LA PRIETA ZONE

0.10 opt gold over 60 ft. - More Room to Grow

The La Prieta Zone (Figure 2) is located inside of the Magistral Mine. Drilling this year has successfully extended the mineralization by 100 ft. (30 m) to the southwest. US Gold's earlier drilling on this zone returned 0.093 opt gold over 101 ft. (3.17 gpt over 30.8 m), including 0.274 opt gold over 20 ft. (9.39 gpt gold over 6.1 m). Results from the most recent step out hole are below:


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

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

MPX-19         0.10   345   405       60         3.26  105.2  123.4    18.3
Including      0.30   370   380       10        10.33  112.8  115.8     3.0

Two additional holes are currently being drilled with the goal of expanding the La Prieta Zone further to the southwest where it remains open.

In March, we intersected silver mineralization above the high grade gold La Prieta Zone. Follow up drilling has successfully encountered additional silver mineralization. Results are stated below:


Hole #  Silver Grade  From    To   Length   Silver Grade  From   To  Length
------  ------------  ----    --   ------   ------------  ----   --  ------

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

MPX-21           5.1   210   215      5.0            174  64.0 65.5     1.5

PALMARITO PROJECT

Mineralization Still Expanding

Reverse circulation (RC) drilling continues to successfully extend the silver-gold mineralization down-dip of the Main Zone (Figure 3: Plan map) (Figure 4: Cross section as indicated on plan map). Results from the Main Zone released August 6th included 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). Highlights from recent drilling are listed below:


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

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

PMX-23               2.5       2.5              -      0      10        10
and                  5.6       5.0           0.01    630     695        65
including           13.6      11.5           0.04    650     665        15
and                  2.8       1.2           0.03    745     760        15

PMX-19               3.3       2.7           0.01      5      10         5
and                  6.0       5.8 less than 0.01    700     725        25
including            8.8       8.6 less than 0.01    705     720        15

PMX-24               8.4       8.4              -      0       5         5
and                  4.9       3.6           0.02    595     600         5


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

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

PMX-23              85.1      85.1              -      0     3.0       3.0
and                191.4     170.5           0.39  192.0   211.8      19.8
including          464.7     395.7           1.30  198.1   202.7       4.6
and                 96.4      42.5           1.02  227.1   231.6       4.6

PMX-19             114.4      92.6           0.41    1.5     3.0       1.5
and                204.4     199.3           0.10  213.4   221.0       7.6
including          302.9     295.0           0.15  214.9   219.5       4.6

PMX-24             287.0     287.0              -    0.0     1.5       1.5
and                167.6     125.0           0.80  181.4   182.9       1.5