Vangold Resources Ltd.

Vangold Resources Ltd.

May 25, 2006 14:25 ET

Vangold Resources Ltd.: Trenching at Mt Nakru Suggests Widespread Gold

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2006) - Vangold Resources Ltd. ("Vangold") (TSX VENTURE:VAN) announces that its joint venture partner, New Guinea Gold Corporation ("NGG"), manager of the projects owned by Kanon Resources Ltd. ("Kanon") in Papua New Guinea, has issued a news release on the Mt. Nakru property located in West New Britain, Papua New Guinea.

An assessment of current and previous trenching at the Nakru 1 prospect suggests that a structural zone over 1km in length and 300m in width contains widespread gold above 0.1g/t and sporadic gold above 0.5g/t. This zone, with further exploration, could yield a major bulk mineable gold target. Best trench intervals from the current and previous programs include 95m at 2.9g/t gold (inc. 35m at 7.3g/t gold) and 42m at 2.79g/t gold.

The Mt Nakru copper/gold/molybdenum system in Central New Britain, Papua New Guinea is effectively owned 75% by New Guinea Gold and 25% by Vangold. The Mt. Nakru intrusive complex covers 40 sq kms, much of which is mineralised to a greater or lesser degree. Four prospects have been identified named Nakru 1 to Nakru 4. In addition the Plesyumi porphyry copper system occurs within this license (see update summary press release noted below).

A full summary of the entire project is available in a complimentary release titled "Update Summary - Mt Nakru Copper/Gold/Molybdenum Project", dated 25th May 2006.

The trench intercepts above 0.5g/t gold are listed below and locations are shown on the accompanying figure.

Nakru 1 Prospect: Highlights of Gold in Trenches

Sample Width Au (g/t) Average Au (g/t) Highest Value
95m 2.88 31.6
(inc.35m) (7.26) "
(inc. 5m) (31.6) "
10m 2.72 Not reported
42m 2.7 16.8
(inc. 3m) (16.8) "
51m 2.2 6.9
45m 2.5 Not reported
33m 2.4 7.2
27m 1.2 Not reported
9m 1.3 "
245m 0.8 "
(inc. 35m) (1.2) "

The significance of the present assessment is that it appears to define a major gold target separate from and adjoining the major porphyry copper/gold/molybdenum system, which in turn occurs at greater depths than the gold.

The copper potential of the Mt Nakru property is described in some detail in the complimentary Press Release dated 25th May 2006.

It is anticipated that considerable drilling will be required to define the extent of gold mineralisation at Nakru 1. The partners are formulating an ongoing exploration program with details available in the near future.

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, CEO of New Guinea Gold Corporation. Mr. McNeil has an MSc in Geology, 44 years mining industry experience, is a Fellow of the Australian Institute of Mining and Metallurgy, and meets the requirements of NI 43-101 for a qualified person.

Vangold is a diversified natural resource company with a portfolio of 22 diverse advanced stage projects including revenue generating oil and gas projects.

In the gold sector, drilling is underway at Mt. Penck (Papua New Guinea) which has been compared to Nevada's Round Mountain Mine (9 million ounces). In Uganda, Vangold has licenses covering over 60 sq km in the prospective Kilembe copper/cobalt belt, licences covering over 300 sq km in the Kilo Moto region and licenses covering over 287 sq kms in the Kafunzo area.

Vangold's oil and gas drilling programs in Alberta, Canada, include the Killam North oil field. Since late 2005, Vangold and its partners drilled five successful multi-leg horizontal wells. The first well was placed on production in November 2005 and the last in February 2006. Vangold holds a 26.25% interest. Production from these wells is stabilized at approximately 1,240 barrels of oil per day, 325 barrels net to Vangold's interest.

Vangold's Alberta projects also include the Sarcee Gas Discovery, (the Sarcee 12-13-23-4W5M well is estimated to be 20 to 30 BCF (Sproule Associates Ltd.)). Another of Vangold's Alberta gas projects is located in the Rocky Mountain House Deep Gas Basin which is close to Shell's trillion cubic feet pool.

On Behalf of the Board of


Dal Brynelsen, President and CEO

To view the map attached to this release please click on the following link:

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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