Mr. Marc Blythe reports

AU GOLD CORP ANNOUNCES $250,000 PRIVATE PLACEMENT

Au Gold Corp. has arranged a non-brokered private placement of $250,000. The placement consists of five million units priced at five cents each. Each unit comprises one share and one whole 10-cent warrant valid for two years. The securities issued with respect to the private placement will be subject to a hold period of four months and one day in accordance with applicable securities laws.

Proceeds of the private placement will be used for general corporate purposes and exploration on the company's mineral exploration properties.

The company has been carrying out exploration on its Ponderosa property, located near Merritt, B.C., and continues to evaluate gold properties for potential acquisition.

We seek Safe Harbor.