Sargold Resource Corporation
TSX VENTURE : SRG

Sargold Resource Corporation
Medoro Resources Ltd.
TSX VENTURE : MRS
AIM : MRL

Medoro Resources Ltd.

May 29, 2006 20:07 ET

Sargold and Medoro Amend Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 29, 2006) - Sargold Resource Corporation (TSX VENTURE:SRG) ("Sargold" or the "Company") and Medoro Resources Ltd. (TSX VENTURE:MRS)(AIM:MRL) announce an amendment to their existing agreement. Under the amended terms as set out in a letter of intent (the "Letter Agreement"), Sargold would, on payment of EUR 2.0 million, purchase 90% of the issued and outstanding shares of Sardinia Gold Mines S.p.A. The Letter Agreement also includes the Sargold's acquisition from Medoro Resources, SGM Ricerche, the Italian company that holds the interests to the Monte Ollasteduu gold project. The transaction is subject to all corporate and regulatory approvals.

The Monte Ollasteddu project is subject to a joint venture with Goldfields Ltd.
The amendments would replace the existing agreement between Sargold and Medoro that required payments of EUR 5.0 million over 5 years.

In order to facilitate this transaction Sargold has negotiated a private placement of up to 18,500,000 million units at CDN$0.18. Each unit consists of one common share and one half of one common share purchase warrant. One whole share purchase warrant entitles the holder, upon exercise, to acquire one common share at a price of CDN$0.30 for a period of two years.

The above is subject to regulatory approvals.

For further information on the Company please visit the Company's website at www.sargold.com or at www.SEDAR.com website.

ON BEHALF OF THE BOARD OF DIRECTORS,

Richard W. Warke, President

Medoro Resources Ltd.'s regulatory filings may be obtained from www.SEDAR.com.

ON BEHALF OF MEDORO RESOURCES LTD.

Robert Doyle, Executive Vice-President

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

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