Sonora Gold Corp.
TSX VENTURE : SGG
PINK SHEETS : SGGFF
FRANKFURT : T9N

Sonora Gold Corp.

July 12, 2007 00:15 ET

Sonora Gold Corp. Closes Santa Gertrudis and Roca Roja Properties Sale

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - Sonora Gold Corp. ("Sonora Gold" or the "Company") (TSX VENTURE:SGG)(PINK SHEETS:SGGFF)(FRANKFURT:T9N) is pleased to announce the completion of the final agreement (the "Agreement") to sell 100% of its shares, rights, title and interest of First Silver Reserve S.A. de C.V. and Recursos Escondidos S.A. de C.V. (the "Subsidiaries") to Animas Resources Inc. (the "Purchaser") (TSX VENTURE:ANI) (formerly Deal Capital Ltd., a TSX Venture Exchange listed Capital Pool Company). The Subsidiaries are registered and beneficial holders of the past producing Santa Gertrudis and Roca Roja properties located in Sonora, Mexico.

As consideration, the Purchaser has paid US$650,000 and issued 1,500,000 escrowed common shares of the Purchaser to the Company at Closing with final TSX Venture Exchange acceptance. The Purchaser also paid the Company an aggregate of $25,000 as a non-refundable deposit for execution of the Letter of Intent and US$20,000 for subsequent extension fees. Three additional payments of US$500,000 will be paid to the Company in cash and/or common shares of the Purchaser at the option of the Purchaser on the first, second and third anniversaries of the Closing date.

This transaction does not immediately include the Company's 100% owned San Enrique copper, molybdenum, gold, and silver property that is currently under an option agreement ("San Enrique Option Agreement") with Minera Teck Cominco Ltd. ("Teck Cominco"). Under the terms of the San Enrique Option Agreement, Teck Cominco may spend US$3.5 million over 5 years to earn a 60% interest and upon earning that interest, may then elect to earn an additional 10% by spending an additional US$3.5 million on the San Enrique property.

The Company has entered into a right of first refusal agreement with the Purchaser, offering a 120 day option to purchase the Company's 100% interest in the San Enrique property should Teck Cominco's earn-in option be terminated. Terms of the option would include, US$450,000 payable in cash or common shares of the Purchaser at the option of the Purchaser, and US$20 for each ounce in excess of 45,000 ounces on the Properties subject to the Option, contained in mineralized material above a 1.5 gram per tonne Au cut off in 43-101 compliant measured and indicated resource categories. If Teck Cominco earns any interest in the Properties, then on the day Teck Cominco earns such interest the Purchaser's Option on the properties will terminate and have no further force or effect. Should the Purchaser choose to exercise the option with respect to any portions of the Properties that are returned to the Company by Teck Cominco the Purchaser shall pay the Company that percentage of the exercise price which is equal to the percentage of the total surface area of the portions so returned in relation to the total San Enrique Option Lands area. Conversely, should the Purchaser choose to not exercise the option over particular returned portions, the total exercise price will be adjusted in the same fashion as described above.

At this time, Teck Cominco's option to earn an interest in Sonora Gold's San Enrique Option Lands remains in good standing. Teck Cominco is continuing exploratory work in 2007 with 3D structural and geophysical analysis and up to 2000 meters of drilling scheduled to commence upon availability of a drill rig. Teck Cominco has expended over US$1 million on the San Enrique Option Lands to date and has established a preliminary US$500,000 budget for exploration in 2007.

Sonora Gold is now planning to pursue other opportunities available to the Company and finalize summer exploration plans for the drill-ready RHG copper-gold porphyry prospect in northwestern British Columbia.

For more information on Sonora Gold, visit www.sonoragold.ca.

On Behalf of the Board,

Dave McMillan, President & C.E.O.

Sonora Gold Corp.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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

Contact Information

  • Sonora Gold Corp.
    Tom Brady
    Investor Relations
    (604) 685-5851 or Toll Free: 1-888-685-5851
    or
    Sonora Gold Corp.
    Chad McMillan
    Investor Relations
    (604) 685-5851 or Toll Free: 1-888-685-5851
    (604) 685-7349 (FAX)
    or
    Sonora Gold Corp.
    Arthur Ferjo
    (705) 743-5042
    Email: ir@urg.ca
    Website: www.sonoragold.ca