SearchGold Resources Inc.
TSX VENTURE : RSG
FRANKFURT : S10

SearchGold Resources Inc.

August 13, 2008 09:00 ET

SearchGold Reports an Open Pit Gold Reserve of 150,000 Ounces of Gold Included in a New Resource Estimate of 230,000 Ounces of Gold for Bakoudou-Magnima Project in Gabon

MONTREAL, QUEBEC--(Marketwire - Aug. 13, 2008) - SearchGold Resources Inc. (TSX VENTURE:RSG)(FRANKFURT:S1O)("SearchGold") is pleased to announce it has received an independent, 43-101 compliant, Mineral Resource and Mineral Reserve estimate for Zone A on its Bakoudou-Magnima Gold Project located in Gabon, Africa. The estimates were prepared as part of the bankable feasibility study completed by Managem, SearchGold's majority partner on the project.

The Bakoudou's Zone A mining project foresees the construction of an open pit gold mine with a projected mine life of 3.5 years. It will produce approximately 40,000 ounces of gold per year over the life of the project from a gravity concentrating plant processing near surface saprolite gold mineralization.

According to the feasibility study, Bakoudou's Zone A holds a Measured and Indicated Resource of 230,000 ounces of gold including a Proven and Probable Reserve of 150,000 ounces of gold. These reported figures represent total reserves and resources contained in Zone A owned by Ressources Golden Gram Gabon SARL ("REG"). As of today, SearchGold owns 36% of REG and as part of the Managem-SearchGold Joint Venture Agreement, SearchGold's ownership of REG will stand at 27% once regulatory documentation following the acceptance the bankable feasibility study is completed.

The Mineral Reserve estimate was prepared by Reminex, an independent Moroccan Engineering Firm, and is based on a Mineral Resource estimate audited by Systemes Geostat International Inc. ("Geostat") of Montreal, Quebec, Canada.

Highlights of the Managem Feasibility Study



Mineral Reserve Estimate:
- Proven Mineral Reserve:
- 0.58 million tonnes grading 2.54 g/t gold (47,600 ounces)
- Probable Mineral Reserve:
- 1.12 million tonnes grading 2.98 g/t gold (107,100 ounces)

Mineral Resource Estimate :
- Measured Mineral Resource:
- 0.53 million tonnes grading 2.84 g/t gold (48,400 ounces)
- Indicated Mineral Resource:
- 1.87 million tonnes grading 3.06 g/t gold (184,000 ounces)


Commenting on the results of the Managem feasibility study, Philippe Giaro, President and CEO stated: "The development objective for Bakoudou-Magnima has always been to establish the potential of the property well beyond what Zone A can deliver. This revised resource estimate enables us to confirm the presence of a critical mass of metal that we intend to use as a starting point to mine the area. Recent surface results validate our initial theory that there should be additional gold zones within a 10 km radius of Bakoudou's Zone A and the newly defined Lekodo anomaly, located south of Zone A increases the length of the Bakoudou Gold Corridor to 6 km."

Bakoudou Zone A Mineral Reserve and Mineral Resource Estimate Summary

The April 30, 2008 Mineral Resource and Mineral Reserve Statement for Bakoudou's Zone A is summarized in the following table :

Table 1. Mineral Resource and Mineral Reserve Statement(i) for Bakoudou's Zone A, Gabon. Prepared by Reminex, April 30, 2008.



-------------------------------------------------------------------------
Resource and Reserves Quantity Grades Contained Metal (oz Au)
Classification (Mt) (g/t)
-------------------------------------------------------------------------
Open pit (saprolite)
-------------------------------------------------------------------------
Proven Reserves 583 000 2.54 47 600
-------------------------------------------------------------------------
Probable Reserves 1 117 000 2.98 107 100
-------------------------------------------------------------------------
Total 1 700 000 2.83 154 700
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Saprolite and hard rock
-------------------------------------------------------------------------
Measured Resources 530 000 2.84 48 400
-------------------------------------------------------------------------
Indicated Resources 1 870 000 3.06 184 000
-------------------------------------------------------------------------
Total 2 400 000 3.01 232 400
-------------------------------------------------------------------------
Inferred 157 000 1.67 8 400
-------------------------------------------------------------------------

(i) Notes: Reported figures represent total reserves and resources
contained in Zone A owned by Ressources Golden Gram Gabon SARL ("REG").
SearchGold owns 36% of REG. Mineral resources include mineral reserves.
Mineral reserves are reported at a cut-off of 0.55 g/t gold within a
pit shell optimized using a gold price of US$700 per ounce and
metallurgical recovery of 88 percent. Mineral resources are reported at
a cut-off of 0.5 g/t gold. All figures have been rounded to reflect the
relative accuracy of the estimates. Mineral resources are not reserves
and do not have demonstrated economic viability.


Methodology

In June 2007, Reminex engaged Geostat to Audit the Mineral Resource estimate prepared by Reminex on Bakoudou's Zone A in the context of the bankable feasibility study.

The independent Mineral Resource and Reserves estimates are reported in accordance with Canadian Securities Administrator's National Instrument 43-101 and conforms to generally accepted Canadian Institute of Mining ("CIM") "Estimation of Mineral Resources and Mineral Reserves Best Practices" Guidelines. A complete National Instrument 43-101 Technical Report will be filed on Sedar within 45 days of release of this press release.

The audited Mineral Resource statement is based on a total of 184 HQ-NQ diameter core holes (for a total of 11 659m) drilled over an area of 350x500m over the southern part of the Bakoudou soil anomaly in 2004-05 and 2006-08. The Mineral Resource model was constructed in Datamine Studio. A total of 4 main gold zones wireframes were constructed from interpretation of the drilling data and subdivided into two weathering profiles (saprolite and fresh rock). After geostatistical analysis and variography, gold grades were interpolated into a partial block model (parent block size of 5x5x2.5m) using ordinary kriging. An average tonnage factor of 2.28 and 2.63 was used to convert volumes into tonnages for the saprolite and hard rock, respectively. The gold mineralization is known to extend at depth beyond the drilling data.

The Mineral Reserve estimate was prepared by Reminex using Whittle Pit Optimization software to model conceptual pit shells using the following assumptions: pit wall average angles of 35 degrees for the saprolite and 50 degrees for the hard rock, 12% mining dilution, a gold price of US$700 per ounce, a gold recovery of 88.2%, mining costs of US$5.44 per tonne of ore and of US$2.06 per tonne of waste and processing costs of US$8.86 per tonne. Based on these parameters the economic cut-off was estimated at 0.55 g/t gold.

The capital expenditures (CAPEX) are estimated at US$30 million while the operating expenditures (OPEX) used in the financial model includes refinery costs, reclamation costs, withholding tax, government royalties and operator management fee. Operating costs are estimated at US$380 per ounce of gold.

At a discount rate of 8% and a gold price of US$800 per ounce the project economics are as follows:



IRR 22%
US$
NPV @ 8% 12,000,000
US$
Cash Profit 24,000,000


Sensitivity Analysis

The Mineral Reserves are most sensitive to variations in grade, gold recovery and the price of gold. The sensibility analysis is summarized in the following table at a discount rate of 8% used to estimate the NPV.

Table 2. Sensitivity analysis for Bakoudou's Zone A, Gabon



---------------------------------------------------------------------------
Gold %
Price variation -20% - 10% 0% 10% 20%
------------------------------------------------------------------
Gold price
- USD 640 720 800 880 960
------------------------------------------------------------------
IRR 10% 17% 22% 28% 33%
------------------------------------------------------------------
NPV 2,103,175 7,334,644 12,331,167 17,327,691 22,324,214
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Gold % variation -20% -10% 0% 10% 10%
Recovery Gold
------------------------------------------------------------------
Recovery 71% 79% 88,15% 97% 97%
------------------------------------------------------------------
IRR 11% 17% 22% 28% 28%
------------------------------------------------------------------
NPV 2,243,661 7,400,770 12,331,167 17,261,473 17,261,473
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Grade Grade (g/t
gold) 2,29 2,58 2,86 3,15 3,44
------------------------------------------------------------------
%
variation -20% -10% 0% 10% 20%
------------------------------------------------------------------
IRR 10% 17% 22% 28% 33%
------------------------------------------------------------------
NPV 2,138,624 7,352,477 12,331,167 17,309,576 22,287,773
---------------------------------------------------------------------------

---------------------------------------------------------------------------
OPEX Opex
variation -20% -10% 0% 10% 20%
------------------------------------------------------------------
IRR 27% 25% 22% 20% 17%
------------------------------------------------------------------
NPV 16,537,480 14,434,324 12,331,167 10,228,011 8,124,855
---------------------------------------------------------------------------

---------------------------------------------------------------------------
CAPEX Capex
variation -20% -10% 0% 10% 20%
------------------------------------------------------------------
IRR 30% 26% 22% 19% 17%
------------------------------------------------------------------
NPV 15,879,048 14,105,107 12,331,167 10,557,227 8,783,287
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Exchange $/DH 9,51 8,46 7,61 6,92 6,34
Rates ------------------------------------------------------------------
Euro/$ 1,20 1,35 1,50 1,65 1,80
------------------------------------------------------------------
% Variation -20% -10% 0% 10% 20%
------------------------------------------------------------------
IRR 32% 27% 22% 18% 14%
------------------------------------------------------------------
NPV 19,237,156 15,784,162 12,331,167 8,878,173 5,402,889
---------------------------------------------------------------------------



Qualified Persons and Qualification of Reminex, Geostat and SRK

The technical content of this news release has been reviewed by Philippe Giaro, P. Geo., President and CEO of SearchGold Resources Inc. and Qualified Person for SearchGold. The Mineral Resource estimate was completed by Reminex and was audited by Mr. Michel Dagbert, P. Eng. of Geostat. Mineral Reserve estimates are based on engineering work performed by Reminex under the supervision of Mr. Mohammed Rachek, Ing. Jr. of Reminex. The geological aspect of the project was audited by Dr. Jean-Francois Couture, P.Geo of SRK Consulting (Canada) Inc.

By virtue of their academic backgrounds, relevant professional experience and affiliation to a professional association, Mr. Giaro, Mr. Dagbert, Mr. Rachek and Dr. Couture are all "Qualified Persons" as defined by National Instrument 43-101. Furthermore Mr. Dagbert, Mr. Rachek and Dr. Couture are independent from SearchGold as defined in Section 1.4 of National Instrument 43-101.

The feasibility study performed by Managem on Bakoudou's Zone A was completed by Reminex, a Moroccan engineering consulting group specializing in mining projects. Certain aspects of the project were subcontracted to independent groups. Scott Wilson of Chesterfield, England completed the geotechnical studies and the tailings dam conception and design studies; the environmental impact study was completed by Terea, a local Gabonese engineering group and the hydrogeological and hydrology studies have been completed by Geopole, a Moroccan engineering group.

Systemes Geostat International Inc. is a geological and mining independent consulting firm providing a broad range of services to the mining industry including computer assisted ore reserve estimation. In this specific field, Geostat has earned its leading position by utilising a rare blend of people with practical mining, geological and geotechnical experience, world-renown theoretical knowledge and the latest computer and software technology.

SRK Consulting (Canada) is part of SRK Consulting an independent, international consulting practice. SRK provides focused advice and solutions to clients, mainly from earth and water resource industries. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. Formed in 1974, SRK now employs more than 700 professionals internationally in 33 permanent offices on 6 continents. SRK Consulting employs leading specialists in each field of science and engineering. Its seamless integration of services, and global base, has made the company a leading international practice in due diligence, feasibility studies and confidential internal reviews.


Strategic potential of the Bakoudou-Magnima Project

In July 2005, SearchGold signed a strategic $4,200,000 joint venture agreement on the 2,294 km2 Bakoudou-Magnima Gold Project with Managem, a successful, established African-based mining company (www.managem-ona.com).

Zone A, represents the project's first advanced target and the strategy for Bakoudou-Magnima has always been to develop the potential of the property well beyond this initial objective. Managem and SearchGold's strategy has, from day one, consisted of undertaking regional exploration in parallel with definition drilling and the execution of a feasibility study on Zone A. Thus, implementing a business plan focussed on the development of a mid-size mining operation with on-going exploration work on surrounding targets to insure long term feed for the mine.

Exploration activities on Bakoudou-Magnima have initially focussed on an area within a 10 km radius around Zone A to identify additional targets within a short distance. Since the initial discovery of three additional gold zones within that 10 km radius target area, the follow-up geochemical soil surveys have so far turned positive on two of them. The newly defined Lekodo anomaly is located south of Bakoudou and increases the length of the auriferous trend by 3 km, the Bakoudou-Lekodo gold corridor now reaches a surface extension of 6 km. Drilling will shortly be initiated on these new geochemical soil targets.

Managem and SearchGold also control a 40 km strike length of the Magnima greenstone belt which represents a 5 km wide evolutive volcanic package with basic volcanic rocks topped by sediments and acid volcanics intruded by late stage, syn-volcanic plutons. Major structures comprising mylonites and shear zones transect the volcanic sequence. The BRGM executed previous work on the Magnima greenstone belt in the 1980's and identified three soil gold anomalies up to 2.2 km in strike length with surface grab samples yielding grades of up to 7.7 g/t gold. The approach for the Magnima greenstone belt is similar to that of the 10 km radius target area around Zone A involving initial stream geochemistry, soil geochemical sampling and drilling of the best targets.

Managem and SearchGold will now intensify their exploration on Bakoudou-Magnima and intend to report on a regular basis on the advancement of the work programs.

About SearchGold Resources Inc.

SearchGold Resources is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Africa. The expansion strategy in 2006 had set the stage for the Company's development in 2007 through increased activity on the advanced projects, a new acquisition and the segmentation of its activities to unlock value for its shareholders. SearchGold's diamond assets were re-organized along with Mano River Resources Inc., to create an integrated diamond company called Stellar Diamonds Limited of which SearchGold holds 2.7 million shares. SearchGold's Canadian gold assets were also re-organized through the creation of Golden Share Mining Corporation (GSH-TSXV), a dynamic junior exploration company focused on gold exploration in Canada.

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