El Gallo Continues to Expand East & South 

TORONTO, ON US Gold Corp. reported that drilling continues to expand the size of the silver-gold resource and upgrade the inferred mineralization at the El Gallo Project in Sinaloa State, Mexico. In addition, drilling has intersected high grade mineralization 400 meters southwest of the El Gallo resource. Also, drilling on the recently discovered Alamo vein has encountered mineralization 150 meters south of the previous exploration.

"With a $30 million exploration program over the next two years, a large land package and multiple new discoveries at and around El Gallo, the potential to expand the resource looks excellent. We are pushing aggressively to grow the size of the project as we move it through feasibility and towards production," said Rob McEwen, Chairman and CEO. Drilling at El Gallo continues to focus on growing the size of the resource and upgrading inferred mineralization to the measured and indicated categories. Drilling to expand the known mineralization occurred in the eastern area of the Main Zone. Holes GAX-276, GAX-277, GAX-278 expanded the mineralization encountered in hole GAX-282 which returned 233.3 gpt silver over 12.4 meters, by approximately 30 meters. Also, GAX-275 intersected encouraging mineralization, expanding the resource by 30 meters to the south. Infill drilling continues to meet expectations, increasing the confidence associated with the inferred mineralization. The results of this drilling will be incorporated into an updated resource and initial reserve estimate due at year-end. Drilling 400 meters southwest of the El Gallo resource has encountered high grade mineralization over a narrow width. US Gold's geologists' drill tested this area based on a soil geochemical anomaly. To date, only one core hole has been completed. Two more are scheduled over the coming weeks, which will confirm if this mineralization can be extended at depth and along strike. Alamo is one of several veins that were discovered late in 2010. Previous holes from Alamo have returned encouraging gold mineralization such as 27.2 gpt gold over 1.0 m, 13.7 gpt gold over 1.5 m and 9.3 gpt gold over 1.7 m, highlighting the areas upside potential. New drilling on the Alamo vein has successfully intersected additional high grade mineralization 150 meters south of the previous drilling. Geologic mapping and rock chip sampling indicated the potential for extending the mineralization along strike. It is important to note that two high grade intercepts were encountered in this hole, suggesting the presence of parallel veins. This is the first time drilling at Alamo has encountered multiple zones. The company's address is 99 George Street, 3rd Floor, Toronto, ON  M5A 2N4.