Sargold Resource Corporation

Sargold Resource Corporation

June 01, 2006 11:19 ET

Sargold Resource Announces Appointment of George Paspalas as Chairman

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2006) - Sargold Resource Corporation (TSX VENTURE:SRG) (the "Company" or "Sargold") is pleased to announce the appointment of Mr. George Paspalas as Chairman of Sardinia Gold Mining S.p.A, a 90-percent owned subsidiary of the Company. Mr. Paspalas brings to the Company over 20-years of international executive and operating experience in mining, project development and mines management.

Prior to his appointment, Mr. Paspalas enjoyed a distinguished 18-year career with Placer Dome Inc., working at a number of locations around the world including Canada, Australia, Latin America and Africa. During his tenure at Placer Dome, Mr. Paspalas held senior leadership roles at both the operations and executive level, serving as Executive Vice-President, Placer Dome Africa from 2002 to 2004; and most recently as Senior Vice-President Projects, from 2004 to 2006, a role in which Mr. Paspalas led the technical development and engineering functions globally for the company.

Mr. Paspalas earned an Honours Degree in Engineering (Chemical) from the University of New South Wales; has completed the Advanced Management Program at INSEAD France; and is a fellow of the Australian Institute of Company Directors.

Sargold President and CEO Richard Warke said: "We are extremely pleased George Paspalas has accepted this key strategic appointment during this exciting phase for Sargold, and look forward to his contribution to our Company's success."

Sargold is also pleased to announce the addition of Ms. Betty Joy (Bj) LeBlanc as Manager, Investor Relations and Corporate Communications to its management team. Ms. LeBlanc brings extensive knowledge in financial communications and the resource industry through her experience in both corporate and consulting capacities. Ms. LeBlanc will be responsible for managing investor communications, enhancing investor awareness and providing publicly available information regarding Sargold. Ms. LeBlanc holds a Masters of Business Administration from Saint Mary's University and a Bachelor of Art degree from Brock University. Ms. LeBlanc will be compensated up to CD$6,250 per month based on use of services, plus approved expenses. The Company has granted Ms. LeBlanc 50,000 stock options which are included in the grant of options indicated below.

In accordance with the policies of the TSX Venture Exchange and subject to regulatory approval, Sargold has granted 550,000 stock options pursuant to its Stock Option Plan for officers and consultants. The options are at an exercise price of CD$0.13 per common share for a period of five years expiring on June 1, 2011.

ABOUT SARGOLD RESOURCE CORPORATION Sargold Resource Corporation controls the largest precious metals exploration and exploitation land area in Sardinia, Italy. The Company's properties and projects range from the mine and full processing plant at Furtei, to advanced exploration properties with existing in-ground gold resources to numerous exploration properties across the island. Sargold owns 90% of Sardinia Gold Mining ("SGM"), the operating company based in Furtei. The island of Sardinia, located approximately 150 kilometres west of Rome, is the second largest in the Mediterranean Sea covering over 24,000 square kilometres.


Richard W. Warke, President & CEO

FORWARD-LOOKING STATEMENTS - The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's latest annual report and management discussion and analysis. The Corporation assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.

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