El Gallo Drilling Expands Mineralization In Several Directions 

TORONTO, ON - US Gold Corporation reported assay results for 10 new drill holes at the El Gallo project in Sinaloa State, Mexico. Drilling focused on expanding the Main and North Zones. The three best holes from these respective areas returned 2.6 ounces of silver per ton (opt) over 206.7 feet (ft) ((88.2 grams per tonne (gpt) over 63.0 meters (m)), 3.5 opt silver over 93.2 ft (121.5 gpt over 28.4 m), and 17.4 opt silver over 34.4 ft (596.2 gpt over 10.5 m).

"Results from El Gallo continue to highlight the excellent potential to expand the resource beyond the initial estimate. Our plan is to deliver an updated resource by late October and then again in January in order to help quantify for investors the amount of silver we are finding. A fourth drill has just been added and a fifth will be arriving in September in order to advance our pace," said Rob McEwen, Chairman and CEO. Drilling in areas where mineral structures intersect continues to return some of the widest intersections to date from El Gallo. Hole GAX-202, drilled on the north edge of the Main Zone is the most recent example returning 2.6 opt silver over 206.7 ft (88.2 gpt over 63.0 m), starting approximately 140 ft (40 m) below surface. These structural intersections are becoming an important setting for finding additional silver. The structure found in GAX-202 remains open to the north and south. Another important hole drilled in the Main Zone is GAX-201, which expanded the mineralization to the south by 115 ft (35 m). This hole demonstrates that the zone remains open and that the potential to further expand the mineralization looks promising. GAX-200 was drilled as an infill hole in order to increase the confidence level associated with the mineralization. Drilling to the northeast of the resource has discovered an important extension to the North Zone. These results extended the length of the zone by approximately 50% or 325 ft (100 m). The mineralization is flat-lying and near surface. The zone remains open to the northeast and east. Hole GAX-179 was of particular interest, intersecting some of the highest silver grades recorded in this area of the project. The company's address is 9 George St., 3rd Floor Toronto, ON M5A 2N4.