June 07, 2007 07:00 ET

Young-Shannon Signs Option and Joint Venture Agreement to Earn 70% Interest in Gold/Silver Property in Argentina

TORONTO, ONTARIO--(Marketwire - June 07, 2007) - Young-Shannon Gold Mines, Limited (TSX VENTURE:GYS) ("Young-Shannon" or "Company") is pleased to announce that the Company has signed an Option and Joint Venture Agreement (the "Agreement") to earn a 70% interest in the M-18 gold and silver property in the province of Chubut in Argentina from Silver Standard Resources Inc. ("Silver Standard"). The M-18 Property comprises 6,300 hectares measuring 9 km. east-west by 7 km. north-south.

Previous detailed geological mapping at 1:1,000 scale and rock outcrop sampling has identified a gold/silver-bearing epithermal vein system with intense alteration on surface defined in outcrop for at least 1.2 km. in strike length and 0.5 km. in width before becoming covered by alluvium. The system remains open in all directions at this time.

Gold assay results from 98 grab samples from systematic mapping distributed over the strike length from this program returned values ranging up to 4.63 grams/tonne gold and 47.20 grams/tonne silver. There were 38 samples grading in excess of 1.00 grams/tonne gold of which 28 samples had grades ranging from 1.00 to 1.99 grams/tonne gold, 6 samples grading 2.00 to 2.99 grams/tonne gold, 2 samples grading 3.00 to 3.99 grams/tonne gold, and 2 samples in excess of 4.00 grams/tonne gold.

Elevated epithermal pathfinder elements also occur over the entire length of the zone. For example, multiple samples assayed in excess of 1% lead, 0.1% to 0.3 % zinc, and 1% arsenic.

Property due diligence was carried out during February, 2007 by Greg Lipton, P.Geo., Young-Shannon's Qualified Person. Geological mapping and geochemical sampling distributed over the exposed 1.2 km. strike length of the zone confirmed both the geology and the highly anomalous gold values obtained by Silver Standard. Gold assay results from 61 grab samples taken for property due diligence showed 21 samples grading in excess 1.00 grams/tonne gold of which 17 samples had grades ranging from 1.00 to 1.99 grams/tonne, 3 samples grading 2.00 to 2.99 grams/tonne, and 1 sample in excess of 3.00 grams/tonne. Similarly, epithermal pathfinder elements of lead, zinc, and arsenic were highly anomalous.

Young-Shannon is extremely excited about the potential of this entire property. It has never been drill tested or undergone any systematic property scale exploration such as detailed geologic mapping, geophysics, or geochemistry. Young-Shannon is planning an aggressive exploration program on the property in the near future commencing on the 1.2 km mineralized gold zone and ultimately expanding in surrounding terrain where extensive argillic alteration occurs.

Similar epithermal deposit models include Cerro Vanguardia (Argentina), Calcatreu (Argentina), and the Toodoggone district of British Columbia.

Young-Shannon is required to spend $US 1,000,000 over four years on exploration on M-18 to earn its 70% interest. Exploration expenditures on each anniversary date of June 04 will be $US 250,000 by the first anniversary, $US 500,000 by the second anniversary, $US 750,000 by the third anniversary, and $US 1,000,000 by the fourth anniversary. Likewise, cumulative option payments for the property will occur as follows: $US 15,000 on the first anniversary date, $US 25,000 on the second anniversary date, $35,000 on the third anniversary date, and $50,000 on the fourth anniversary date.

If a NI 43-101 compliant resource estimate shows that the property is silver dominant, that is, greater than 50% of the value of the resource estimate, Silver Standard will have the option to back-in for a 51% interest in the property by incurring $US 1,000,000 in exploration costs.

All proposed exploration on the property will be through a management committee comprised of equal representation of Young-Shannon and Silver Standard until Young-Shannon exercises its option. However, Young-Shannon will determine how exploration funds will be spent on the property. If Young-Shannon does exercise its option it will then have the majority voting regarding operations on the property unless Silver Standard exercises its back-in right, in which event Silver Standard shall be entitled to majority voting.

Greg Lipton, P. Geo., the Company's President and CEO, is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).

Rock samples were assayed by ALS Chemex of Mendoza, Argentina using 34 element ICP-AES and aqua regia / AA for ore grade Ag and Pb values.

Young-Shannon Gold Mines, Limited is a precious metals exploration company which holds a group of 11 patented and 18 unpatented claims within Chester Township located west of Highway 144 midway between Sudbury and Timmins, Ontario. It also has an option to earn a 60 % interest in the McMillan Gold Mine property, located 75 kilometres southwest of the Greater City of Sudbury. The Company has 31,305,078 common shares outstanding and is listed on the TSX Venture Exchange under the symbol GYS.

Further details may be obtained from our website:

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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