Gateway Gold Corp.

Gateway Gold Corp.

June 05, 2006 17:15 ET

Gateway Farms Out Jack Creek Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 5, 2006) -


Gateway Gold Corp. (the "Company") (TSX:GTQ) is pleased to announce that it has entered into an Option and Joint Venture Agreement (the "Option") on the Company's Jack Creek property in northeastern Nevada. The Company has agreed to grant Stanley B. Keith and Earl W. Abbott (the "Optionees") an option to acquire a 50% interest in the Jack property (the "Claims") with a further option to increase that interest to a 70% interest in the property.

In order to maintain the option in good standing and earn a 50% interest in the Claims, the Optionees must incur aggregate expenditures of USD$500,000 before March 1, 2009. Once the Optionees have earned a 50% interest, Gateway can either participate as a 50% joint venture partner or allow the Optionees to earn an additional 20% interest in the Claims by spending an additional USD$500,000 before March 1, 2011. If the Optionees earn the additional 20% interest, Gateway can elect to either participate as a 30% joint venture partner or convert the 30% interest to a 10% Net Profits Royalty.

The Jack Creek property is located approximately two miles southwest of the Company's Dorsey Creek property. The property comprises 53 JAK claims that lie on an inferred structural trend that passes through the Company's Big Springs and Dorsey Creek properties onto the Jack Creek property. The geology at Jack Creek is similar to that at Big Springs and the known gold mineralization at Jack Creek is hosted by the same package of rocks that host mineralization at Big Springs. Moderate gold grades were found in rocks at the surface by Gateway Gold's staff. Limited drill programs carried out a previous operator encountered modest gold grades in some of the holes.

The Optionees are planning a detailed mapping program over the claims followed by a deep drilling campaign.


Michael D. McInnis, P.Eng., President and CEO

Dr. Giles Peatfield, P. Eng. is an Independent Qualified Person for GTQ and has reviewed and approved the contents of this release.

The TSX does not accept responsibility for the adequacy or the accuracy of this release.

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