SOURCE: Vangold Resources Ltd.

May 31, 2007 18:41 ET

Vangold Releases Q1 2007 Results

VANCOUVER, BC--(Marketwire - May 31, 2007) - Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") published its 2007 first quarter unaudited consolidated financial and operating results on May 30, 2007. Complete financial statements may be reviewed at www.vangold.ca or www.sedar.com.

* Total assets increased from $11,898,944 as at March 31, 2006 to $15,143,787 as at March 31, 2007;

* Total revenue for the first quarter ended March 31, 2007 was $509,722, a decrease of $421,873 over the same period for 2006. The decrease is directly attributable to significantly reduced production from the Killam North Field due to the construction of a gas gathering system and the operator's decision to decrease daily production. Gross revenue from the East Corning Field was $2,320 and from the Killam North Oil Field, $507,402;

* Total expenses for the first quarter ended March 31, 2007 were $665,143 compared to $568,341 for the same period in 2006;

* Net loss for the first quarter ended March 31, 2007 was $218,936 ($0.003) per share compared to a net income of $85,039 ($0.001) for the same period in 2006;

* Cash and cash equivalents as at March 31, 2007 were $5,734,036 compared with $3,972,564 for 2006; and

* Total working capital as at March 31, 2007 was $5,928,462 compared with $4,364,068 for 2006.

Highlights during the quarter included the following:

* Results from drill core assays from the Mt Penck project included 4m at 3.6 g/t gold and 7m at 2.07 g/t gold in hole 26 (See News Release of January 2, 2007).

* A three hole drill program was completed at Mt Nakru (See News Release of January 3, 2007).

* Further results from drill core assays from Mt Penck included 7m at 2.95 g/t gold in hole 33 (See News Release of January 19, 2007).

* Drill program at the Feni Islands project commenced (See News Releases dated January 19, 2007 and February 5, 2007).

* Significant bedrock gold mineralization discovered within a large gold soil anomaly at Yup River (See News Release of February 12, 2007).

* Trench results at Mt. Penck confirms two significant gold mineralized zones at Upper Peni Creek and Kavola South including 3m at 180 g/t gold within 24m at 33.7 g/t gold (See News Release of February 21, 2007).

* Vangold acquired exclusive rights to 7,208 sq km Rwanda oil concession south of Heritage oil discovery in Uganda (See News Release of March 1, 2007).

Subsequent to the first quarter, on April 10, 2007, Vangold announced that the Kenyan government had granted Vangold the first right to negotiate a Production Share Contract on Block 3 with covers over 24,000 sq kms. On April 18, 2007, Vangold announced a proposed business combination by way of reverse takeover between its 51% owned subsidiary, Horn Rare Metals Ltd., and Janina Resources Ltd. Vangold also announced its 2006 Year End financial highlights on May 1, 2007 which include total revenues for 2006 which increased 350% from 2005 and total assets increased from $8.7M to $15.4M. Finally, on May 23, 2007 Vangold announced that it had entered into a petroleum exploration Production Sharing Agreement for the exploration of 13,775 sq kms in Armenia.

To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca.

On Behalf of the Board of
VANGOLD RESOURCES LTD.

"Dal Brynelsen"
Dal Brynelsen, President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

Contact Information

  • Vangold Resources Ltd.
    P.O. Box 11622, 1730 - 650 West Georgia Street
    Vancouver, BC
    V6B 4N9
    Phone: (604) 684-1974
    Fax: (604) 685-5970
    www.vangold.ca