Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

July 11, 2005 09:30 ET

Oro Gold Resources Finalizes Cimarron Agreement and Expands Project with Veteranos Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 11, 2005) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) today announces the finalization of its formal agreement to acquire the 6,644 hectare Cimarron property, as well as its acquisition of the 252 hectare Veteranos property, both located in the state of Sinaloa, Mexico.

Oro Gold has previously reported positive results of its due diligence work performed on the Cimarron property. Those results included 78 stream samples, of which 21 were anomalous, showing values up to 2.25 g/t Au. Of 101 rock samples taken, 30 were anomalous returning values above 1.0 g/t Au up to 128.4 g/t Au. The gold anomalies are located in numerous areas throughout the concession block spanning an area 10 km long by 5 km wide.

The due diligence conducted on the Cimarron property led to the identification of the Veteranos property as a key strategic acquisition target. Located internal to the Cimarron property, Veteranos lies 3 km west of and on trend with, the Los Brasiles property recently optioned by Sydney Resources. Initial exploration results have shown high stream and rock geochemistry similar to that on the surrounding Cimarron property, with a chip sample from rare outcrop returning 11.4 g/t Au and 24.9 g/t Ag across 3.0 metres. Grab samples from 50 m and 210 m away from the showing returned values of 8.9 and 22.7 g/t Au, respectively. Advanced exploration is underway and results will be announced once interpreted.

Freeman Smith, P. Geo., a qualified person for the purposes of National Instrument 43-101, supervised the exploration programs on the Cimarron and Veteranos properties and verified the information of a scientific or technical nature contained in this release.

Oro Gold has an option to acquire an undivided 51% interest in the Cimarron property by incurring property expenditures of US$500,000 and making a total payment of US$50,000, both to be completed over a two year period. Oro Gold then has a further option to increase its undivided interest to 100% by incurring additional property expenditures of US$1,000,000 by the end of 2008 and making an additional one-time payment of US$250,000. Upon commencement of commercial production, Oro Gold will grant a sliding net smelter return (NSR) of 1.0% to 2.5% based on the price of gold, which it has the option to buy-back for certain cash payments.

The Veteranos property was purchased for an up-front cash payment of US$10,000, with no ongoing work commitments or NSR's.

These transactions are inline with Oro Gold's generative strategy which takes aim at under-explored belts that host historic multi-million ounce, gold-rich mines in Mexico.

Darren Bahrey, Oro Gold's president stated: "Cimarron is truly unique and something new. It has never been the subject of a disciplined modern exploration program. With the Cimarron deal formalized and the strategic Veteranos concession added, we are free to initiate an aggressive staged exploration program. We look forward to expanding on our already exceptional results and gaining more insight into this promising new system."

Oro Gold continues to advance its Ixtapan del Oro property as well as generate other opportunities in Mexico and Latin America.

On behalf of the Board of Directors,

Darren Bahrey, President and CEO

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. Oro Gold disclaims any intention or obligation to revise or update such statements.

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

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