SearchGold Resources Inc.
TSX VENTURE : RSG

SearchGold Resources Inc.

July 28, 2005 09:00 ET

SearchGold Signs a $4,200,000 Deal on Bakoudou

MONTREAL, QUEBEC--(CCNMatthews - July 28, 2005) - SearchGold Resources Inc. (TSX VENTURE:RSG) announces today that it has signed a joint-venture agreement to explore and develop the Bakoudou Gold Project in Gabon, with Managem, the mining division of Moroccan-based ONA Group.

The ONA Group, a leading private Moroccan industrial and financial company, formed Managem (www.managem-ona.com) in 1928. Managem, through its subsidiaries, operates 6 mines in Morrocco where it produces gold, silver, cobalt, copper, lead, zinc and fluorite. Managem was also involved in the development of two gold mines in West Africa, the Kiniero mine in Guinea and the recently commissioned Samira Hill mine in Niger. These mines are operated by SEMAFO (SMF:TSX), a Canadian gold mining company operating in West Africa, in which Managem holds a 51% interest.

"We are delighted to join forces with Managem, a successful, established African-based mining company, to develop Bakoudou Gold" remarked Maurice Giroux, President of SearchGold. "Managem's involvement attests to Bakoudou's quality and upside potential and their commitment will allow us to explore the full potential of the project without diluting our shareholders' interest."

Under the terms of the joint venture agreement, Managem can purchase a 54% interest in Golden Gram Gabon Resources, SearchGold's Gabonese subsidiary that owns 100% of the Bakoudou Project, for CDN $1.2 million and by funding CDN $3.0 million of exploration and development over 2 years. Managem can earn an additional 9% by completing a bankable feasibility study and a further 4.5% for arranging SearchGold's portion of financing through to production. Managem will be the project operator and exploration and development programs will be determined jointly by both SearchGold and Managem through a 4-member management committee composed of two members of each party.

The Bakoudou Gold Project encompasses the 2,300 km2 Magnima exploration permit and the 24 km2 Bakoudou exploitation permit. A 3 km northwest trending gold bearing corridor has been defined by soil geochemistry, surface rock sampling and diamond drilling. Within this corridor, SearchGold has undertaken definition work on a first target, Zone A. This zone contains an oxide-sulfide measured and indicated resource totaling 277,380 ounces of gold (2,100,000 metric tons at a grade of 2.45 g/t gold in oxide and 570,000 metric tons at a grade of 6.11 g/t gold in sulfide). In June 2005, SearchGold announced additional drilling results from Zone A which included an intercept grading 13.04 g/t gold over 11.5 meters. There are numerous other targets on the property which remain to be explored and developed.

About SearchGold

SearchGold Resources is a Canadian based mining exploration company whose primary mission is to target, explore and develop diamond and gold deposits in Africa and in Canada. SearchGold's current projects include the Lake Fortune West and Chevrier Lake gold properties in Quebec, the Mandala diamond project in Guinea and the Bakoudou gold project in Gabon. The Company trades on the TSX-Venture exchange under the symbol "RSG" and has 62 million shares outstanding.

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

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