Asia Gold Corp.

Asia Gold Corp.

April 23, 2007 10:59 ET

Asia Gold to Option the Tsakhir Exploration License in the South Gobi Region of Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 23, 2007) - Asia Gold Corp. (TSX VENTURE:ASG), is pleased to announce the signing of an exclusive Option Agreement with Gallant Minerals Ltd. (Gallant) that provides Asia Gold with the right to earn from Gallant an 80% interest in the Tsakhir copper, gold and molybdenum mineral exploration license in the Gobi region of south central Mongolia.

The Tsakhir license hosts the southern extension of the Khongor porphyry copper-gold deposit discovered by Asia Gold in 2005 (see News Releases of Asia Gold dated October 18, 2005 and July 19, 2006). Mapping of the Tsakhir license has identified a cluster of nested porphyry bodies and significant areas of quartz stockwork and breccia bodies. The property scale geology suggests that Tsakhir and Khongor may be part of a very large (greater than 10 kilometres diameter) multi-phase intrusive complex with significant prospectivity. Tsakhir and Khongor lie within the South Gobi arc terrane that hosts the giant Oyu Tolgoi copper-gold deposit, located 300 kilometres to the east.

Prior to this new Option Agreement with Gallant, Asia Gold had an option to the Tsakhir and eight other licenses in Mongolia through an agreement with Solomon Resources Limited and Gallant. Solomon Resources withdrew from this agreement in March 2007.

The Option Agreement

Under the terms of the Option Agreement Asia Gold is required to deliver the following payments to Gallant and complete the following work expenditures in order to exercise the option to acquire an 80% interest in the Tsakhir license;

On Closing:

- A cash payment of US$20,000.

- Asia Gold common shares valued at US$20,000.

On or before the First Anniversary of the Option Agreement:

- US$300,000 in work expenditures.

- A cash payment of US$20,000.

- Asia Gold common shares valued at US$30,000

On or before the Second Anniversary of the Option Agreement:

- An aggregate of US$600,000 in work expenditures.

- A cash payment of US$30,000

- An executed Shareholders Agreement (unless Gallant exercises its option to convert its interest as described below)

Subject to Asia Gold exercising its option to acquire an 80% interest in the Tsakhir license, Gallant has a one time option, exercisable within 30 days of Asia Gold completing the option, to retain its 20% interest as a fully participating joint venture partner, or to convert its 20% interest into a net smelter royalty of up to 3%. Asia Gold retains the right to buy down the royalty pursuant to a payment scale based on the amount of the annual net smelter revenue.

The Option Agreement is subject to the approval of the TSX Venture Exchange.

David C. Owens, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.

Ivanhoe Mines and BHP Billiton own approximately 44% and 10% respectively of the issued and outstanding shares of Asia Gold.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned exploration of the optioned Mongolia property, the prospectivity of such property and other statements that are not historical facts, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The reader is cautioned not to place undue reliance on forward-looking statements. Asia Gold undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances after the date of this release.

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

Contact Information

  • Asia Gold Corp. - Investors
    Steven Feldman
    (604) 681-6799
    Asia Gold Corp. - Media
    Bob Williamson
    (604) 681-6799