Mr. Rob McEwen reports

US GOLD CORPORATION: EL GALLO DRILLING INTERSECTS IMPRESSIVE SILVER MINERALIZATION

U.S. Gold Corp. has released new drill results from the El Gallo complex in Sinaloa state, Mexico. Drill results contained in this news release were completed in order to increase the size of the silver and gold resources at El Gallo. Highlights include 309.7 grams per tonne silver over 10.3 metres, 727.7 g/t silver and five g/t gold over 2.7 metres, 130.9 g/t silver over 19 metres, and 461.7 g/t silver over 11.3 metres, with the last intersection occurring 20 metres below the proposed pit bottom.

"Since making the El Gallo discovery in 2009, we have completed an aggressive exploration program of 165,000 metres of core drilling, and we still have not found the limits of the system. Impressive intersections of near-surface silver mineralization continue to be encountered. In addition, I believe the proposed merger with Minera Andes will create an attractive, high-growth, low-cost mid-tier silver producer. The fundamentals look exceptionally bright for the company, despite the current share price decline," stated Rob McEwen, chairman and chief executive officer.

Impressive drill intersections

Drilling in order to expand the size of the resource focused on three areas: east of, south of and below the planned pit. Each of the holes encountered impressive intersections of silver mineralization. Drilling to follow on these results is under way.

East of proposed pit

Hole GAX-380 intersected two zones. The first zone returned 727.7 g/t silver and five g/t gold over 2.7 metres, including 2,260 g/t silver and 16.2 g/t gold over 0.8 metre. This intercept is the updip extension of the Main zone. The result demonstrates that the mineralization continues to surface. The second intersection came from the Lower zone, which continues to be defined and expanded, returning 309.7 g/t silver over 10.3 metres, including 3,510 g/t silver over 0.7 metre. Both intersections occur approximately 120 metres east of the proposed pit design, released in February as part of the preliminary economic assessment (PEA).

South of proposed pit

Hole GAX-369 intersected 130.9 g/t silver over 19 metres in an area that was believed to have limited expansion potential. This hole encountered a much wider zone of better-than-expected grade. The intersection occurs 125 metres south of the PEA pit design.

Below the proposed pit

Hole GAX-374 successfully encountered 461.7 g/t silver over 11.3 metres, including 1,945.6 g/t silver over 2.4 metres, 20 metres below the present PEA pit bottom. This hole was drilled with the belief that a high-grade crosscutting structure is present through this portion of the Main zone. This hole helps confirm U.S. Gold's geological model in addition to providing downdip continuity to several other high-grade intersections in the area.

Other notable results from the recent expansion drilling included 113.5 g/t silver over 8.5 metres and 92.9 g/t silver over 7.5 metres from hole GAX-383. This hole is located in the North zone and was drilled through inferred mineralization in order to upgrade the resources to the indicated category and further extend the inferred resource. Holes GAX-367 and GAX-372 were drilled to increase the lower-grade heap-leachable mineralization. These holes encountered 47.5 g/t silver over eight metres and 28.7 g/t silver over 33.2 metres, respectively.

Phase 1 mining scheduled for the second quarter of 2012

Phase 1 mining at the El Gallo complex is expected to commence during the second quarter of 2012. The El Gallo complex includes the El Gallo and Palmarito silver deposits and the Magistral gold deposits, which are located within a 13-kilometre (eight miles) radius. Phase 1 will focus on the permitted gold deposits, and is expected to produce 30,000 ounces of gold per year after initial ramp-up. Capital costs have been estimated at $15-million, and the projected cash flow will help finance phase 2, which is forecasted to produce an additional five million ounces of silver per year, beginning in 2014. Readers should note that mineral resources that are not mineral reserves do not have demonstrated economic viability.

Technical information

This news release has been viewed and approved by John Read, CPG, U.S. Gold's consulting geologist, who is a qualified person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the company at its Mexican exploration properties.

Samples from the core drilling were split at the site at the company's El Gallo complex. One-quarter to one-half of the split drill core is shipped to ALS Chemex for sample preparation and analysis by four-acid digestion with ICP determination for silver and fire assay for gold. Samples returning greater than 1,500 parts per million silver or 10 ppm gold were reanalyzed using gravimetric fire assay. Standards and blanks were inserted every 20 samples.

All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not been determined in some locations.

For additional information about the El Gallo project, see the "Preliminary Economic Assessment for the El Gallo District, Sinaloa State Mexico," dated Feb. 11, 2011, and prepared by Paul Gates, PE, Richard Addison, PE, and Aaron McMahon, PG, of Pincock Allen & Holt of Denver, Colo. All three individuals are qualified persons as defined by National Instrument 43-101, and are independent of U.S. Gold as defined in Section 1.4 of National Instrument 43-101 and Section 3.5 of Companion Policy 43-101CP. Mr. McMahon verified the mineral resource data contained in the El Gallo PEA by conducting a site visit, which included verification of drill hole locations and survey data, review of sample handling, review of data collection procedures, partial audit of the assay database, review of the quality assurance/quality control data, and analysis of core recovery and drill logs and their relations to assay values. The El Gallo PEA is available on SEDAR.

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