Mr. Rob McEwen reports

NEW GOLD-SILVER DISCOVERY AT THE EL GALLO COMPLEX

U.S. Gold Corp.'s exploration drilling within the El Gallo complex, located in Sinaloa state, Mexico, has intersected significant gold and silver mineralization at the San Dimas prospect. To date, results have been received from seven holes. An additional seven holes have been completed and assays are pending.

Exploration drill hole highlights:

• SDX-02: 1.61 grams per tonne gold, 81 gpt silver over 18.5 metres (3.23 gpt gold equivalent over 18.5 metres(i)), including 4.73 gpt gold, 292.1 gpt silver over 3.9 metres (10.57 gpt AuEq over 3.9 metres) starting 40 metres below surface;

• SDX-04: 1.10 gpt gold, 39.7 gpt silver over 23.5 metres (1.89 gpt AuEq over 23.5 metres), including 8.71 gpt gold, 285.6 gpt silver over 1.4 metres (14.42 gpt AuEq over 1.4 meters) starting 25 metres below surface;

• SDX-08: 1.89 gpt gold, 67.0 gpt silver over 20.0 metres (3.23 gpt AuEq over 20.0 metres), including 3.14 gpt gold, 110.4 gpt silver over 9.3 metres (5.35 gpt AuEq over 9.3 metres) starting 31 metres below surface.

(i) Gold:silver ratio equals 1:50.

"The first series of holes from San Dimas has returned significant near-surface intersections of gold and silver mineralization. In addition, the discovery is close to U.S. Gold's planned production facilities, increasing San Dimas's possible economic significance," stated Rob McEwen, chairman and chief executive officer.

U.S. Gold believes the results are important for several reasons: 1) the gold grades and widths are comparable with the zones that will be mined during phase 1. In addition, the silver grades are considerably higher; 2) the prospect is near infrastructure, located 11 kilometres from the proposed mill site at El Gallo. It is located immediately south of the main access road; and 3) the mineralization is shallow and amenable to open pit mining.

The San Dimas prospect is a former-producing property that operated on a small scale until 1998. Excellent potential remains within the immediate area for additional targets. An extensive reconnaissance exploration program, consisting of percussion drilling, an airborne magnetic survey, soil sampling, and detailed prospecting and sampling, is being undertaken south of San Dimas.

One core drill is currently operating at San Dimas in order to extend the known mineralization. A series of metallurgical tests are being planned to determine the optimum process method.

Phase 1 mining scheduled for second quarter PHASE 1 2012

Phase 1 mining at the El Gallo complex is expected to commence during second quarter 2012. The El Gallo complex includes the El Gallo and Palmarito silver deposits, and the Magistral gold deposits, which are all located within a 13-kilometre (eight-mile) 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 are not classified as mineral reserves do not have demonstrated economic viability.

Commentary on Argentinian decree

U.S. Gold has learned that yesterday the government of Argentina announced a change to a 2004 decree which had previously exempted the mining industry from a requirement to repatriate revenues from exports. As further information becomes available, the company will evaluate what impact this may have on the combined U.S. Gold/Minera Andes entity (McEwen Mining). U.S. Gold will keep its shareholders apprised as more information becomes available.

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 on 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.

For additional information about the El Gallo complex see "Preliminary Economic Assessment for the El Gallo District, Sinaloa State Mexico," dated Feb. 11, 2011, and prepared by Paul Gates, PE, Richard Addison, PE, Aaron McMahon, PG, of Pincock Allen & Holt of Denver, Colo. All three individuals are qualified persons as defined by NI 43-101 and are independent of U.S. Gold as defined in Section 1.4 of NI 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 verifying drill hole locations and survey data, reviewing sampling handling, 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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