Oro Gold Resources Ltd.

Oro Gold Resources Ltd.

January 10, 2006 16:49 ET

Oro Gold's Ixtapan Gold Prospect Optioned

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2006) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) has granted Rockgate Capital Corp. ("Rockgate"), a TSX Venture Exchange listed capital pool company, an option to explore a select area within Oro Gold's 100% owned Ixtapan del Oro property, located in Mexico State, Mexico. The area of interest is approximately 4,190 hectares in size and covers both the Ixtapan gold-rich vein prospect and the Chilar exploration area, located in the southern and eastern portions of the Ixtapan del Oro claim block. The agreement does not include the right to explore or earn-in on the Mihuatlan silver project located within the remaining 4,540 hectares of the Ixtapan del Oro property, which contains a historical silver and gold resource (not National Instrument 43-101 compliant).

Rockgate can acquire an initial 51% interest in the gold project by incurring US$200,000 in expenditures on the project within one year of the date of TSX Venture Exchange acceptance of the agreement and issuing 100,000 shares to Oro Gold. Rockgate has two further options to acquire in aggregate an additional 14% interest (for a total 65% interest) in the gold project by incurring an additional US$800,000 on the project over a two year period and issuing an additional 250,000 shares to Oro Gold. The agreement is subject to approval by the shareholders of Rockgate as the company's "qualifying transaction" and to the acceptance of the TSX Venture Exchange. Oro Gold will operate the project during the first year and receive a US$20,000 management fee.

The veins at the Ixtapan gold project have never been drill tested. Initially, 1,500 metres of core drilling will be conducted to test the Ixtapan gold target at depth below the historical workings. Oro Gold is currently securing permits in time to commence drilling upon acceptance of the Rockgate agreement for filing by the TSX Venture Exchange.

The Ixtapan gold prospect comprises a series of northeast trending gold-bearing structures hosted in andesite volcanics that outcrop over a 500 metre wide by 1 kilometre long area. The Ixtapan structures are interpreted to be fault related and are characterized by zones up to 8 metres wide cut by quartz veins up to 1 metre wide and/or stockwork veins. Individual veins can be up to 750 metres in length and are open along strike and at depth. Silicified breccias containing vein and host rock fragments are also observed. The Ixtapan structural trend can be traced along strike for 7 kilometres.

Certain parallels can be drawn between the geological environment at Ixtapan del Oro and the world class El Oro historic mining camp, located 60 km to the north, where more than 10 million gold equivalent ounces were mined from quartz veins. Specifically, quartz vein and ore shoot development at El Oro is greatest within phyllite basement rocks just below the contact with the overlying volcanic rocks. At Ixtapan, phyllite basement rocks similar to those at El Oro outcrop to the east and are believed to underlie the volcanic rocks hosting the gold mineralized structures at a fairly shallow depth. As such, proposed drilling will target the Ixtapan veins just below the contact between the basement phyllites and the overlying volcanic rocks.

Prior exploration was conducted by the Mexican government at the Ixtapan gold prospect, which includes historical channel sampling from underground workings that reported grades up to 15.25 g/t Au over 3.5 metres, and an average grade of 6.62 g/t Au over 1.31 metres average width. Oro Gold completed a geochemical survey over this area which resulted in defining a surface gold anomaly over 800 metres long by 300 metres wide, and confirmed the existence of high-grade gold values in trenches. The best trench results returned 16.2 g/t Au over 5 metres, and included 62.4 g/t over 1.2 metres.

Dean Besserer, P.Geo, of Apex Geoscience Ltd., is the independent qualified person experienced in precious metals exploration who authored the National Instrument 43-101 report on the Ixtapan del Oro property and reviewed the technical content of this news release. Samples were analyzed at Acme Analytical Laboratories in Vancouver, Canada.

Oro Gold continues to explore the Mihuatlan silver-gold prospect on the remaining portion of the property not included in the agreement with Rockgate. A historic resource of 225,000 gold equivalent ounces was reported at Mihuatlan by the Mexican government in the 1980's based on the completion of over 30 core holes. Significant drill intercepts include 4.39 m of 670 g/t Ag and 1 g/t Au, and 9.6 m of 147 g/t Ag (not true width). Oro Gold views the historic resource as an indication of the presence of mineralized rocks only, as the resource is not compliant with National Instrument 43-101 guidelines. Oro Gold is planning to engage a joint venture partner to advance the Mihuatlan Prospect with core drilling to confirm and potentially expand the silver and gold resource.

Oro Gold continues to generate new opportunities elsewhere in Mexico and Central America, and is currently developing drill targets at its 100% owned Cimarron property located near Mazatlan in the State of Sinaloa.

On behalf of the board of directors,

Darren Bahrey

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.

Contact Information