Mr. Peter Bernier reports

PROSPER GOLD ENTERS INTO OPTION AGREEMENT TO ACQUIRE 100% OF THE KAZA AND NORTHSTAR PROPERTIES IN BRITISH COLUMBIA, CANADA

Prosper Gold Corp. has entered into a definitive option agreement with several individuals (collectively, the optionors), whereby the optionors have granted the company the option to acquire a 100-per-cent interest in the Kaza and Northstar properties (collectively, the Cyprus project).

Project highlights:

• Historical drill intercepts include 0.55 per cent copper (Cu) over 138.3 metres;
• Historical trench sampling includes 1.68 per cent copper over 23 metres;
• Over 1 per cent copper and up to 5.1 grams per tonne (g/t) gold (Au) in historical soil sampling;
• Two road-accessible copper-gold porphyry prospects approximately 10 kilometres apart;
• A combined 6,573 metres of drilling in 69 drill holes.

"Prosper has been evaluating this copper-gold exploration opportunity for the past eight months," commented Peter Bernier, chief executive officer. "The immediate exploration potential at both Kaza and Northstar is clearly evident, and we are keen to implement our exploration strategy for this project."

The road-accessible Cyprus project is situated in north-central British Columbia, Canada. Composed of two sets of mineral claims, the Kaza claims and the Northstar claims, the project totals 1,368 hectares, which encompass the historical Kaza and Northstar copper prospects.

The Kaza claims

The Kaza claims total 450 hectares and contain the historical Kaza copper-gold prospect. Extensive geochemical, geophysical and geological surveys, as well as historical drilling activities, have outlined a 2,000 m by 600 m footprint of high-level porphyry copper-gold mineralization and hydrothermal alteration. Highly anomalous copper-gold soil and rock geochemistry are spatially coincident with feldspar porphyry dikes, high IP (induced polarization) chargeability and low magnetic response.

Historical soil samples up to 5.09 g/t gold and 10,000 parts per million (ppm) copper exist at the Kaza prospect. Surface chip samples from 1973 include 0.88 per cent copper, 15.4 g/t gold and 120 g/t silver (Ag) over four metres. Historical drill intercepts include 0.88 per cent copper, 15.4 g/t gold and 127 g/t silver over 1.2 metres in drill hole 68-9. Drill results from the most recent drilling program in 2004 at the Kaza prospect include 0.12 per cent copper and 0.24 g/t gold over 8.2 metres in drill hole KZ-04-01.

The company believes historical operators did not drill test the Kaza prospect to sufficient depths, with the deepest hole reaching only 195 metres vertical depth. The surface expression of the Kaza prospect is interpreted to be the upper reaches of a porphyry copper-gold system.

The Northstar claims

The Northstar claims, situated four kilometres to the northeast of the Kaza claims, total 918 hectares and contain the historical Northstar copper prospect. Two discrete mineralized areas on the Northstar claims have seen a combined 4,900 metres of drilling: the Main zone and the B showing.

Copper mineralization at the Main zone consists of bornite and lesser chalcocite within faulted and fractured andesite. The B showing consists of several zones of vein and shear-hosted chalcocite, and minor bornite hosted in andesitic volcanics, along with disseminated and fracture-filling chalcocite, bornite and chalcopyrite.

Excavation and channel sampling in 1997 at the B showing yielded 23 metres grading 2.1 per cent copper in trench TN-1. Diamond drill hole NS-04-02, drilled in 2004 at the B showing, intersected disseminated and fracture-filling chalcocite, bornite and chalcopyrite mineralization, which assayed 0.55 per cent copper over 138.2 metres. Diamond drill hole 68-10, drilled in 1968 at the B showing by Northstar Copper Mines Ltd., intersected 1.68 per cent copper across 14.6 metres, with mineralization occurring as vein- and shear-hosted chalcocite and bornite.

The company believes the historically outlined zones of copper mineralization at the Northstar prospect are likely driven by a magmatic-hydrothermal system in the immediate vicinity, likely to the east and to depth of the mineralization encountered at the B showing.

Key terms of option agreement

In order to exercise the option, the company must pay an aggregate of $725,000 cash, issue an aggregate of 1.65 million common shares in the capital of the company and incur work expenditures totalling $2-million over a period of four years. Upon the exercise of the option, the company will grant a 2-per-cent net smelter royalty to the optionors, subject to the terms of the option agreement.

Jim Miller-Tait, a director of the company, is one of the optionors. As such, the option agreement involves a related party (as such term is defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101)), and constitutes a related-party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101.

The transactions contemplated by the option agreement, including the issuance of option shares thereunder, are subject to the approval of the TSX Venture Exchange. Any option shares issued under the option agreement will be subject to a hold period of four months and one day.

Qualified person

The scientific and technical information in this news release has been reviewed by Rory Ritchie, PGeo, vice-president of exploration for Prosper Gold and a qualified person under National Instrument 43-101. The results contained in this release were completed by previous operators of the property. Although the company was not involved in the original work in respect of these results, proper industry data verification procedures appear to have been followed.

We seek Safe Harbor.