Nevada trio completing merger into US Gold

Vancouver – A little more than a year after launching takeover bids for Nevada Pacific Gold (NPG-V, NVPGF-O), Tone Resources (TNS-V, TONRF-O) and White Knight Resources (WKR-V, WITNF-O), U.S. Gold (UXG-T, UXG-X) stands poised to close its acquisition following strong acceptance by shareholders of the targeted companies.

US Gold has taken up and accepted 93.7% of White Knight Resources common shares, 83.5% of Nevada Pacific Golds and 89.4% Tone Resources shares under its offer that expired on March 23rd.

We will now move quickly to integrate these four companies, stated US Gold chairman and CEO Rob McEwen on plans to consolidate the mineral projects in the heart of north-central Nevadas Cortez Trend.

Shareholders of White Knight will receive 0.35 of an exchangeable share for each full share tendered; Nevada Pacific Gold shareholders get 0.23 of a US Gold share; and 0.26 of an exchangeable share will be issued for every Tone Resources share tendered. Just over 38 million exchangeable shares of US Gold will be issued under the plan.

With its takeover offer now expired, US Gold plans to take-up all the remaining shares in the three target companies not tendered.

Since embarking on his acquisition plans, US Golds McEwen has tabled his goal of creating Nevadas ultimate exploration company nestled in close proximity to Barrick Golds (ABX-T, ABX-N) and Rio Tintos (RTP-N, RIO-L) large Cortez joint venture.

Recent drilling by US Gold on its Tonkin project, located about 16 km south of Cortez, returned a number of significant intersections including discovery of a new zone of gold mineralization in the Southern Area. In mid-2006 the company earmarked US$30 million for exploration of the project ambitiously contracting eight drill rigs for the effort.

Shares of the three acquired juniors remained halted in March 26th trading while US Gold notched up 6 in Amex trading to close at US$4.19. Assuming full take up of all shares in the trio of juniors, US Gold will have up to 99 million shares outstanding giving it a market capitalization of around US$415 million using the above closing price.