Lincoln Gold Corp.
OTC Bulletin Board : LGCP

Lincoln Gold Corp.

August 04, 2005 06:00 ET

Agnico-Eagle Signs Letter of Intent to Joint Venture Lincoln Gold's Buffalo Valley Property in Nevada

CARSON CITY, NEVADA--(CCNMatthews - Aug. 4, 2005) - LINCOLN GOLD CORP. (OTCBB:LGCP) is pleased to announce that it has signed a Letter of Intent to Joint Venture its Buffalo Valley gold property with Agnico-Eagle (USA) Ltd. ("Agnico"). The large exploration property is located in the northern portion of the Battle Mountain-Eureka Trend and consists of 7 1/2 alternating sections (square miles) with potential for Carlin-type gold deposits and gold-silver skarns. The district includes the Lone Tree (Newmont), Marigold (Glamis/Barrick), Trenton Canyon (Newmont), Trout Creek, Buffalo Valley, and the Phoenix-Fortitude (Newmont) gold deposits. Last year, Metallic Ventures announced their Converse discovery (4.4 MM ozs Au + 17.1 MM ozs Ag) within 5 miles of the Buffalo Valley property.

Under the terms of the Letter of Intent, Agnico may earn a 60% interest in the Buffalo Valley gold property by spending US$3 million over five years. Expenditures include satisfying annual underlying lease payments to Nevada North Resources (USA), Inc. Once Agnico has earned 60%, it may earn an additional 10% by preparing a feasibility study for the development of a mine on the Property. Agnico may elect to accelerate work to obtain its ownership over a shorter time period. If the Joint Venture elects to commence mine development, Agnico may loan or help arrange financing on behalf of Lincoln Gold in consideration of an additional 5% interest to Agnico in the joint venture. Under these terms, Agnico may ultimately earn 75% interest and Lincoln hold 25% of the Joint Venture.

Agnico-Eagle is a leading intermediate-sized gold producer with a 30-year history of gold production; gold production in 2004 was 271,000 ozs. Agnico shares are listed on The New York Stock Exchange (symbol: AEM) and the Toronto Stock Exchange (symbol: AGE). Agnico is actively pursuing exploration opportunities in the major gold trends of Nevada and Lincoln Gold is pleased to have Agnico as a partner on the Buffalo Valley property.

LINCOLN GOLD CORP.

"Paul Saxton"

Paul Saxton, President and CEO

This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. This news release may contain information about adjacent properties on which we have no right to explore or mine. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:

(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;

(ii) the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;

(iii) the inability of the Company to complete the acquisition of Lincoln Gold;

(iv) the inability of the Company to raise the financing necessary to conduct exploration of the Lincoln Gold properties; and

(v) the presence of commercial mineralization on the Lincoln Gold properties.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

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