Two New High-Grade Areas Discovered At El Gallo 

TORONTO, ON - US Gold Corporation reported results from its El Gallo project in Sinaloa, Mexico. High-grade mineralization has been encountered at four separate locations. - Drilling expands original discovery, El Gallo Zone 1 (G1), with the highest silver grades to date from this zone: 37.9 opt silver (1300.0 gpt silver) over 5.0 ft (1.5 m), within 21.3 opt silver (730.5 gpt silver) over 10.0 ft (3.0 m). - The second area discovered, El Gallo Zone 2 (G2), expands with significant high-grade: 13.0 opt silver (446.9 gpt silver), 0.2 opt gold (6.9 gpt gold) over 45.0 ft (13.7 m), including 47.4 opt silver (1625.0 gpt silver), 0.86 opt gold (29.4 gpt gold) over 5.0 ft (1.5 m) - Additional results from G2: 32.7 opt silver (1121.5 gpt silver) over 20.0 ft (6.1 m), including 55.4 opt silver (1900.0 gpt silver) over 10 ft (3.0 m). - Two additional discoveries, El Gallo Zone 3 (G3) and El Gallo Zone 4 (G4), with the best intersection returning 34.6 opt silver (1187.3 gpt silver), 0.51 opt gold (17.6 gpt gold) over 30.0 ft (9.1 m), including 81.1 opt silver (2780.0 gpt silver), 2.1 opt gold (72.4 gpt gold) over 5.0 ft (1.5 m). "Our exploration at El Gallo is getting much more exciting because: 1) significant high grade gold and silver assay values are being found over good widths; 2) these values have been found close to surface and to-date all of our drilling has been shallow, only testing to 150.0 ft (45.7 m) below surface; and 3) favorable gold and silver grades in soil samples (internal assay lab) are prompting us to rapidly expand the area and scope of our drilling," stated Rob McEwen, Chairman and CEO of US Gold. As a result of an ongoing rock and geochemical soil sampling program, US Gold geologists successfully identified two new areas (Figure 2). G3 is located along the eastern edge of the project and it's believed to be part of the same mineral structure that controls the initial discoveries. The G4 area, located to the southeast, is interpreted to be a separate zone. "These exciting results demonstrate the effectiveness of our initial testing utilizing inexpensive conventional rotary drilling and the potential to expand the identified mineralization," McEwen said.