Trio Gold Corp.
PINK SHEETS : TROOF
TSX VENTURE : TGK

Trio Gold Corp.

January 23, 2007 11:57 ET

Trio Gold Corp.: News Release

CALGARY, ALBERTA--(CCNMatthews - Jan. 23, 2007) - Trio Gold Corp. (TSX VENTURE:TGK) (PINK SHEETS:TROOF) (Trio) announces it has entered into a memorandum of understanding (MOU) with GoldSpring Inc. (GSI) a US traded public company, in respect of Trio's option to earn a working interest in the Empire Mine. The Empire Mine is located 3 miles west of Mackay, Idaho, and is currently optioned to Journey Resources Corp. (Journey). Journey may earn a 50% interest in this property by spending USD $1,500,000 in exploration and development by August 31, 2007.

Under the terms of the MOU, GSI has paid a non-refundable deposit of USD $50,000.00 for a 30-day exclusive right to complete a due diligence study of the project. A formal agreement, if executed, will include the following:

1. GSI will purchase from Trio's treasury a total of USD $200,000.00 of common shares at market price, and will issue to Trio USD $350,000.00 of GSI stock.

2. Under the terms of the agreement between Trio Gold Corp. and Sultana Resources LLC (Sultana), dated March 17, 2004 and amended June 30th, 2004, Trio would, subject to regulatory approval, issue from its treasury to Sultana one million common shares upon completion of a bankable feasibility study, and an additional 1.5 million common shares upon commencement of production. GSI will purchase these shares at market price from Trio's treasury and will hold them in escrow to be released to Sultana in accordance with the terms of the Trio-Sultana Agreement.

3. Upon completion of the on-going exploration and feasibility work by Journey, GSI will issue to Trio USD $2,500,000 of GSI common shares.

4. GSI will be responsible for all of Trio's obligations relating to the Empire Mine project.

5. GSI will bear all of Trio's legal costs relating to Trio's on-going Empire Mine lawsuit with Sultana.

6. At Trio's election, it will retain either an 8% net profits interest or a 2% net smelter return on all metal production from the Empire Mine.

The benefits to Trio of the GSI agreement include:

a) No further dilution of Trio shares is required to realize potential cash flow from the Empire Mine;

b) No further expenditure by Trio is required relating to the Empire Mine project;

c) Trio receives a major asset in the shares of GoldSpring Inc.;

d) Trio is compensated for the shares that would be issued to Sultana;

e) Trio is reimbursed for legal fees re, Sultana vs Trio;

f) Trio's working capital will increase through the private placement of shares to GSI.

GSI will assume operations of the Empire Mine project. GSI has a number of institutional financial backers, and is the operator and 100% owner of the Plum Mine located on the Comstock Lode near Carlsbad, Nevada. The Plum Mine is an open pit, producing gold mine.

Trio is planning a drill program in 2007 on its wholly owned Rodeo Creek property, located less than 1.5km north of Barricks' Storm deposit on the northern portion of the prolific Carlin gold belt.

This news release has been prepared by Mr. Harry Ruskowsky, President and CEO.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Trio's future plans, objectives or goals, including words to the effect that Trio or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

CUSIP #89669C-108, Exemption #82-2127

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

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