TORONTO, Oct. 8, 2012 /PRNewswire/ -- Source Gold Corp. (OTCBB: SRGL) ("the Company") is pleased to announce it has entered into final negotiations to acquire a privately held mineral lease holding Company.

The primary asset of the private holding company is approximately 10,000 contiguous hectares of 100% title interest Gold and Silver leases, located in the municipality of Mascota, at an elevation of between 1600 and 2200 meters above sea level. It is accessed from Guadalajara (the capital city of Jalisco) by a 135 km-long paved highway to the town of Mascota then northeast 10km on gravel roads to the small town of Natividad, all drivable year-round.

Geology: The area of the Project is located in the western margin of the Sierra Madre Occidental tectonostratigraphic terrane, a linear, north-northwest elongated package of thick rhyolite ignimbrites, where it is partially covered by the younger Trans Mexican Volcanic Belt.  The main rock outcropping on the property are rhyolite tuffs of the Upper Series Rhyolites on the hills with some of the Lower Series Andesites in the lower vallies.

Mineralization at the Project is silver with lesser gold hosted in a banded and brecciatied quartz veins.  The mineralized zone, as seen determined by independent geologists, extends over an area of about 10 km in strike with three main centers having supported past mining activities.  Mineralization is known to exist over at least 100 meter vertical distance. High Grade chip samples have yielded ore grades of over one thousand grams of Silver per ton.

Recent Programs: In fall of 2007 a property visit was conducted. Results from that visit confirmed the location of the old mines and indicated that there does appear to be economic grades of silver with added gold credits.  Follow-up mapping and sampling is planned along with soil survey programs to identify new targets between the past mining centers.

The acquisition of the holding company and its significant mineral lease holdings are subject to formal documentation which is being prepared subject to the completion of the final due diligence process.

Source Gold intends to release more details on the location and the terms of the acquisition once the due diligence process has been completed.

ADDITIONAL INFORMATION

To learn more about the Companies current holdings, the Vulture Mine project, the Southern Beardmore Area, the KRK West Project, the Company, and regular news updates, visit Source Gold Corp.'s official website: www.sourcegoldcorp.com

About Source Gold Corp.

Source Gold Corp. is a publicly traded junior mineral exploration company trading under the symbol SRGL.OB. The Company's corporate philosophy is to build shareholder value through the exploration and development of high quality mining and exploration projects in Canada and the USA, concentrating on gold in the prolific Southern Beardmore Gold Camp in North Western Ontario, and expanding using advanced methods of exploration on the once prolific silver and gold producer, the Vulture Mine Site, in Wickenburg, Arizona.

ON BEHALF OF THE BOARD OF DIRECTORS,

Source Gold Corp.
Lauren Notar,  President.

Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning gold or other mineral reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present if and when a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of gold or mineral deposits, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of gold or minerals are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior mineral exploration companies with the US Securities and Exchange Commission. This announcement may also contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

• Investor Relations
  858 523 8692

            www.sourcegoldcorp.com

SOURCE Source Gold Corp.