SOURCE: Great West Gold, Inc.

August 02, 2006 06:15 ET

GREAT WEST GOLD, INC. - CORPORATE UPDATE

PHOENIX, NORWAY -- (MARKET WIRE) -- August 2, 2006 --



NEW YORK, August 2, 2006 - Great West Gold, Inc. (OTC Pink Sheets : GWGO) advises its shareholders as to the status of their Company at this time and deals with the various issues raised by shareholders in their communications with the Company.

STOCK DIVIDENDS:

The Company is now, as promised, completing the distribution of the Stock Dividends in Bouse Mining Holdings plc, Ambassador Gold Holdings plc, Sentinel Resources plc, Golden Eagle Mining Holdings plc and in Copperstone Mining Holdings plc to eligible shareholders of Great West Gold, Inc.

The Transfer Agent to each of these Companies will be posting these Share Certificates to eligible Great West Gold, Inc. shareholders as soon as they have received all the details of eligible shareholders who held their stock in the Company through their Broker "Street Names". It appears that the vast majority of the shareholder body holds their stock through their Broker "Street Names". Shareholders are asked to be patient as this is a very time consuming process and involves a large number of Brokers from whom this information is being requested. Shareholders will be kept updated as to the Company's progress in this matter.

The Company confirms the Stock Distributions are as follows:-

Bouse Mining Holdings plc, Great West Gold, Inc. is distributing an amount of 900,000,000 Ordinary Shares of 1p each. For every 1,000 shares of Common Stock held in Great West Gold, Inc. as at November 7, 2005, 28.82 Ordinary Shares are being paid as a Stock Dividend. This Company owns Western Gold Limited and Windsor Resources, Inc. which own the "Bouse" Gold Mining Project.

Sentinel Resource Holdings plc, Great West Gold, Inc. is distributing an amount of 900,000,000 Ordinary Shares of 1p each. For every 1,000 shares of Common Stock held in Great West Gold, Inc. as at November 14, 2005, 19 Ordinary Shares are being paid as a Stock Dividend. This Company owns Golden Sierra Limited and Sentinel Resources, Inc. which own the "Mockingbird" Gold Project.

Copperstone Mining Holdings plc, Great West Gold, Inc. is distributing an amount of 900,000,000 Ordinary Shares of 1p each. For every 1,000 shares of Common Stock held in Great West Gold, Inc. as at December 2, 2005, 19 Ordinary Shares are being paid as a Stock Dividend. This Company owns Copperstone Mining Limited and Copperstone Mining, Inc. which own the "South Copperstone" Gold Project.

Ambassador Gold Holdings plc, Great West Gold, Inc. is distributing an amount of 900,000,000 Ordinary Shares of 1p each. For every 1,000 shares of Common Stock held in Great West Gold, Inc. as at January 2, 2006, 19 Ordinary Shares are being paid as a Stock Dividend. This Company owns Ambassador Gold Limited and Ambassador Gold, Inc. which owns the "Ambassador" Gold Project.

Golden Eagle Mining Holdings plc, Great West Gold, Inc. is distributing an amount of 900,000,000 Ordinary Shares of 1p each. For every 1,000 shares of Common Stock held in Great West Gold, Inc. as at January 4, 2006, 19 Ordinary Shares are being paid as a Stock Dividend. This Company owns Golden Eagle Limited and olden Eagle, Inc. which own the "Golden Eagle" Gold Project.

FURTHER STOCK DIVIDENDS:-

The Company will be declaring further Stock Dividends as promised, but has elected to wait until the existing Stock Dividend reconciliation and postage of those Share Certificates is completed.

These additional three Stock Dividends will be in the new PLC Holding Companies for each of:-

Treasure Kingdom Gold Mining Limited which owns the "Treasure King" Gold Project.

Monstro Verde Mining Limited which owns the "Yaba" Gold Project.

Copper Mountain Mining Limited which owns the "Copper Mountain" Copper Project.

LISTING OF THE PLC MINING COMPANIES:-

It is the intention of this Company to admit each of the PLC Mining Companies for trading on an OTC Exchange in Europe and to then seek a "dual listing" for each company on the OTC Pink Sheets but the Company feels that this will not be prudent until such time as each of these Companies has completed the appointment of independent Management as well the appointment of independent Non Executive Directors to the various Boards of Directors.

WESTERN DIVERSIFIED MINING RESOURCES, INC. ("Western"):

Great West Gold, Inc. holds a 71.43% in Western. The Company is at time, in negotiations to acquire the balance of the stock (28.57%) in Western that the Company does not own, thereby making Western a wholly owned subsidiary Company of Great West Gold, Inc.

Western owns 1,075,000,220 Ordinary Shares (circa 48%) of each of :

Bouse Mining Holdings plc, Ambassador Gold Holdings plc, Copperstone Mining Holdings plc, Golden Eagle Mining Holdings plc and Sentinel Resource Holdings plc.

Shareholders will be kept appraised of developments in this acquisition.

CORPORATE WEB SITE:-

The Company has just launched a new web site, www.greatwestgold.com. Updates to this web site are ongoing but the Company expects to complete the upload of the data within days. This site is updated with all of relevant data on the Company and we are of the opinion that it is more "investor friendly" and will, within days, provide investors with all the Company data that they require. The Company will be making live Level II Data on the stock price available on the web site. The Company would be grateful for input from shareholders as to any additional "content" that they would wish to be available on the Company's web site.

STATUS OF THE COMPANY ON THE OTC PINK SHEETS:-

The Company is, at this time, classed as "Non Reporting". The Company will be appointing a new Auditor and will be filing its outstanding Form 10-KSB for the period ending December 31, 2005, its Form 10 QSB for the period ending March 31, 2006 and its Form 10 QSB for the period ending June 30, 2006. Once these outstanding filings are made, the Company will then continue as a "Reporting" Company quoted on the OTC Pink Sheets Market and thereafter will take the necessary steps to apply for a reinstatement to the OTC BB Market. Management is not at this time, promising any time frame for these corporate actions but will endeavor to do so as fast is reasonably possible.

MANAGEMENT OUTLOOK:-

Management of the Company is focusing on the following in the immediate term:

--  Completing the new updated Corporate Web Site
--  Completing the postage of the Stock Dividends to eligible stockholders
--  Complete the acquisition of the outstanding stock in Western
    Diversified Mining Resources, Inc.
--  Appointing Management to the five PLC Gold Companies
--  Ensuring that investors understand the structure of the Company and
    the value of its Mining Assets and improving shareholder relations
    
And in the Short to Medium term intends to focus on:

--  The creation of additional value for shareholders
--  The completion of the three additional Stock Dividends
--  The acquisition of further Mining Assets
--  The admission of the PLC Companies to a recognized Stock Exchange.
    
The significant increase in Commodity prices, primarily in Gold, Silver and Copper; have dramatically increased the valuation of the Group's Mining Assets. This will also contribute to a successful "fund raising" exercise for each of the PLC Mining Companies "going forward". Management of your Company is fairly convinced that these Commodity prices are not only sustainable in the short to medium term but that the price of Gold in particular, will continue to rise.

About Great West Gold, Inc.

Great West Gold, Inc., www.greatwestgold.com, a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has Gold assets through its holdings in "Bouse", "Mockingbird", "Ambassador", "Yaba", "Golden Eagle" and "South Copperstone" and Copper assets through its holdings in "Copper Mountain". The Company holds five of these Mining Assets through its 48% holding in Bouse Mining Holdings plc, Copperstone Mining Holdings plc, Ambassador Gold Holdings plc, Golden Eagle Mining Holdings plc and in Sentinel Resource Holdings plc. The other three projects are 100% controlled by the Company.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact:-
Great West Gold, Inc.
investor@greatwestgold.com
Tel : + 44 845 127 4051




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