SearchGold Resources Inc.

SearchGold Resources Inc.

March 28, 2006 09:15 ET

SearchGold and Mano River Conclude Joint Venture in Guinea Aimed at Early Diamond Production

MONTREAL, QUEBEC--(CCNMatthews - March 28, 2006) - SearchGold Resources ("SearchGold") (TSX VENTURE:RSG) and Mano River Resources ("Mano") are pleased to announce the signing of a Joint Venture ("JV") in Guinea. The objective is to establish a commercial diamond mine exploiting the very high grade Bouro kimberlite dykes of Mano, and the similarly high grade Mandala alluvial diamond deposits of SearchGold.

The resulting synergy unlocks the tremendous value of this historic diamond district through the unique combination of Mano's Kimberlitic and SearchGold's alluvial assets. The highlights of this synergy are:

- Unification of Mano's hard rock 405 Km2 Exploration Permits and
SearchGold's 30 Km2 Alluvial Permits in the historical diamond
Bouro district of Guinea in West Africa.

- Mano's mini bulk tests on the Bouro kimberlite dyke have confirmed
the high diamond grades reported by De Beers.

- SearchGold's scoping studies on the Mandala alluvial deposits
confirm the high diamond grades derived from Mano's kimberlite

The combination of these hard rock and alluvial assets should enable Mano and SearchGold to validate the profitability and to enter a cash positive revenue stream within the first year of operation mainly via the processing of alluvial gravels, whilst at the same time establishing the economic parameters of the high-grade Bouro dykes, which should provide the most significant revenue in the mid-term.

Both projects have been the object of very systematic diligent technical work and have produced very encouraging results.

Mano's Bouro Kimberlite Dykes

The Mano Bouro kimberlite dykes have been known since the 1960s and have been the object of artisanal mining activity. They recently received preliminary evaluation work by De Beers, who recovered in excess of 5,000 microdiamonds from their Kimberley Acid Laboratory that suggests extremely high grades at several locations. Table 1 illustrates some the obtained results (see also Mano press release dated 16 May, 2005).

The JV plans a two-pronged program consisting of systematic delineation and bulk sampling of these known dykes, with particular priority emphasis on the Bouro North dyke, which is deemed to have the highest grade potential based on work to date. This dyke has a strike length of 5 km, established by field mapping, drilling and geophysics.

Since acquiring the Bouro Permits in 2005, Mano carried out a program of seven small macrodiamond confirmation mini-bulk samples which were positive at the three locations sampled along the Bouro North Dyke and the one location sampled on the Bouro Central Dyke as per Table 2 below. These samples were of weathered surface material collected and weighed by hand in the field, which were jigged at 0.71mm mesh screen size to produce a concentrate. Concentrates were forwarded to Mineral Services Laboratory in Cape Town, South Africa for descriptions, measuring and weighing, which is summarized in the table. Note that no sieving was carried out. The diamonds are virtually entirely dodecahedron in crystal form, with the exception of two octahedral crystals, and four described as fragments. Colours are dominantly brown with subordinate (34%) white crystals, and 70 of the 76 (92%) diamonds are described as transparent. At three other locations, two on the Bouro South Dyke and one on the Bouro Extreme North dyke, no diamonds were found in the concentrate by Mineral Services.

As part of the broader work programme, regional work will be carried out to locate more diamond bearing dykes and blows in all of these districts, which are indicated to be present on the basis of several significant alluvial deposits with no known source, as well as Mano/De Beers regional drainage sampling for kimberlitic indicator minerals (KIMs).

SearchGold's Mandala Alluvial Deposits

The Mandala Permits of SearchGold Resources cover alluvial deposits with very positive economic indicators, on the basis of systematic evaluations carried out in the late 1980s by well-respected international consultants, Placer Analysis Ltd. of Edinburgh, Scotland. Their work has established a non 43-101 compliant indicated resource of 547,000 carats at an average grade of 0.50ct/m2 (approximately 0.71 ct/m3 or approximately 40cpht based on average gravel thickness of 0.7m) within four deposits covering 1,098,000 square metres. Overburden thickness is negligible at 4.5m on average for these deposits.

In 2003 and 2004 SearchGold proceeded with a large scale bulk sampling of the alluvial resources. This work formed the basis of Peter Walker's scoping study and the highlights of this program were:

- Recovery of 24,542 diamonds weighing 6,571.10 carats;

- Processing of a total of 17,921.87 m3 of gravel at a mean grade
of 0.37 cts/m3;

- Confirmation of a mean value of 53.42 US$ per carat (i);

- Confirmation of an updated diamond resource of 535,162 CARATS OF
DIAMONDS LARGER THAN 1.5 MM in a 1,156,000 m2 area within which a
606,000 m2 portion, representing 204,962 carats, is upgraded to the
Probable Reserve status (non 43-101 compliant);

- Anticipation of a profitable mining operation at a production rate
of 60,000 cts / year for a mine life of 8 years;

- Estimation of US$ 11,500,000 Net Cash Flow on gross revenues of
US$28,600,000 over 8 years.

(i) The mean value of the diamonds was establish by Natural Diamond
Corporation of Antwerp in Belgium, SearchGold's Diamond
Marketing Agent.

Of critical importance is that the above alluvial deposits drain the lower grading Bouro Central and South dykes. The entire Mandala drainage basin was, however, subjected to exploration by Placer Analysis, and larger and higher grading inferred deposits totalling in excess of 2,000,000 carats were estimated in areas draining the Bouro North and Extreme North dyke systems. The JV intends systematically to evaluate and upgrade the resources to 43-101 standards on these other deposits, as part of their combined efforts.

First Year programme

The JV has formed a management committee and assigned a budget of US$3.0 million to the project. Compilations have commenced, as well as personnel recruitment and consultants are actively sizing, sourcing and procuring equipment to include rotary pan, dense media separation and x-ray modules in order to construct a state-of-the art plant capable of bulk sampling both alluvial and kimberlite samples. The objective is to carry out large bulk sampling operations on the SearchGold Mandala alluvial deposits and successively larger bulk samples on the Bouro North kimberlite dyke. This work will be supplemented by initial tests of the other alluvial deposits and kimberlite dykes, and combined will allow for comprehensive financial assessments of the economic parameters for the establishment of a combined alluvial/hardrock mine.

About SearchGold

SearchGold Resources is a Canadian based mining exploration company whose primary mission is to target, explore and develop gold and diamond deposits in Africa and in Canada. SearchGold's project strategy maximizes its experience and resources, and supports the company's commitment to strengthen shareholder value.

The tables are available on the CCNMatthews website at the following address:

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

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