Nevada Pacific Gold Ltd.
TSX VENTURE : NPG

Nevada Pacific Gold Ltd.

June 08, 2006 09:03 ET

Nevada Pacific Responds to US Gold New Release

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2006) - Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) provides the following response to the New Release issued by US Gold Corporation ("US Gold") on June 5, 2006. Nevada Pacific, at the direction of the special committee of the Board of Directors ("Special Committee"), has done everything in its power to facilitate US Gold in making a formal offer.

On March 5, 2006, US Gold issued a News Release announcing its intent to acquire all of the outstanding common shares of Nevada Pacific as well as the shares of White Knight Resources Ltd., Coral Gold Resources Ltd. and Tone Resources Ltd. (collectively, the "Target Companies"). Nevada Pacific responded by forming a Special Committee on March 6, 2006 and hiring financial advisors on March 15, 2006 to assist Nevada Pacific.

On April 5, 2006, Nevada Pacific received a copy of US Gold's application to various Canadian Securities Commissions seeking exemption from the requirement that it obtain a formal valuation of certain of the Target Companies, including Nevada Pacific. On April 12, 2006, the Special Committee of Nevada Pacific, in a submission to the Securities Commissions, stated its unequivocal support for the exemption order.

On April 26, 2006, Nevada Pacific was advised that US Gold's application for exemption from the formal valuation requirement had been rejected, and on April 27, 2006, Nevada Pacific was requested by US Gold to proceed with the formal valuation. On May 1, 2006, the terms and conditions for preparation of a combined valuation for both Nevada Pacific and Coral Gold Resources Ltd. were confirmed by US Gold. The valuation work has been completed, several draft reports have been received and reviewed by Nevada Pacific's Special Committee and a final report is anticipated to be delivered to US Gold by the end of this week.

On April 19, 2006, US Gold requested that Nevada Pacific prepare its financial statements according to US GAAP for the past three years and provide these, together with Nevada Pacific's auditors' certification, to US Gold for inclusion in US Gold's registration statement. On May 18, 2006, the work and fee requirements were settled by US Gold together with a timeline confirming a delivery date of June 19, 2006. Nevada Pacific is working with its auditors to complete the work within the original timeframe provided to US Gold.

The Special Committee, comprised of independent directors of Nevada Pacific, categorically deny the allegations of delay and lack of co-operation made by Mr. McEwen in the US Gold News Release. Preparation of the formal valuation and Nevada Pacific's financial statements under US GAAP are complex, time consuming tasks for a company with an operating mine, and have been proceeded with due dispatch by the Special Committee. Nevada Pacific, at the direction of the Special Committee, is and will continue to do everything within its power to assist US Gold in making a formal offer to its shareowners.

ON BEHALF OF NEVADA PACIFIC GOLD LTD.

David Hottman, Chairman


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

Contact Information

  • Nevada Pacific Gold Ltd.
    Erick Bertsch
    (604) 646-0188
    or
    Nevada Pacific Gold Ltd.
    David Hottman
    (604) 646-0188
    (604) 646-0189 (FAX)
    www.nevadapacificgold.com