El Gallo Continues to Grow Regional Drilling Encounters  

TORONTO, ON  US Gold Corporation reported assay results for 15 new drill holes at the El Gallo project in Mexico, designed to increase the total number of ounces beyond the initial NI 43-101 resource estimate released on July 6th. The best drill hole, which encountered two separate zones, returned 16.8 ounces of silver per ton over 78.6 feet [(576.9 grams per tonne over 24.0 meters]and 4.2 opt silver over 42.0 ft (142.3 gpt over 12.8 m).

The majority of the silver mineralization at El Gallo is hosted in the Main Zone. This is the company's primary target for discovering additional ounces. Recent drilling was designed to expand the mineralization laterally to the south. Drill holes GAX-188 and GAX-196 extended the mineralization by 65 ft and 165 ft, respectively. These two holes were drilled at opposite ends of the Main Zone, intersecting good silver values, which demonstrates potential for further expansion.

Delineation drilling in the east part of the Main Zone, designed to increase the total resource and the confidence level associated with the mineralization, intersected better than anticipated grades and widths. GAX-185 encountered two significant zones of mineralization, returning 16.8 opt over 78.6 ft and 4.2 opt silver over 42.0 ft. US Gold geologists believe there is potential to find additional ounces by better defining areas where mineralized structures intersect.

During the second half of the year, US Gold will look to identify additional near surface areas containing lower grade mineralization that may be amenable to heap leach recovery. Three additional holes have encountered near surface oxide mineralization. Results are shown below. Metallurgical test work (column leach tests) on lower grade sulfide mineralization is on-going. Should these tests prove positive this mineralization will be incorporated into the year-end resource estimate.

The company's address is 99 George St., 3rd Floor Toronto, ON M5A 2N4.