Sunridge Gold Corp.

Sunridge Gold Corp.

August 21, 2006 13:05 ET

Sunridge Issues Notices to Gain 100% Ownership of Asmara Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - Sunridge Gold Corp. (TSX VENTURE:SGC) is pleased to announce that it has notified its joint-venture partners in the Asmara Project, that it is seeking regulatory approvals to purchase their aggregate 60% interests in the Asmara Project, Eritrea by issuing a total of 9.5 million shares of Sunridge in accordance with the Option Agreements between the parties. Currently Sunridge has earned a 40% joint-venture interest in the Asmara Project and partners Sub-Sahara Resources NL and Africa Wide Resources Limited own 48% and 12% respectively (collectively the "Optionors").

On January 16, 2006 Sunridge announced that it had provided notice to both its partners of its intention to exercise its option to acquire their combined 60% interests in the Asmara Project for shares of Sunridge so that Sunridge would own 100% of the Asmara Project. On March 1, 2006 Sunridge announced that negotiations among the parties were unable to establish a fair value of the project acceptable to all parties. As a consequence and pursuant with the Option Agreements between the parties an independent consulting company, SRK Consulting (South Africa) (Pty) ("SRK") was appointed to complete valuation of the project as of January 13, 2006.

In accordance with the Option Agreement between the parties, the SRK report was prepared in compliance with the VALMIN Code 2005 as adopted by the Australasian Institute of Mining and Metallurgy. SRK used a variety of techniques to value the Asmara Project including discounted cash flow models and/or the Yardstick method for known mineralization and comparable transactions and past and future exploration expenditure for the exploration potential of the project. SRK concludes that the value of a full equity interest in the project, as of January 13, 2006, ranges from US$10.2 million to US$82 million. The "Preferred Fair Market Value of US$26 million" is within this range and forms the basis for the share consideration to be paid by Sunridge to the Optionors.

Sunridge Gold Corp. is a mineral exploration company focused on the exploration and development of precious and base metal projects in Eritrea. The Company has 33.3 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at or call Don Halliday at the number listed below.


Michael Hopley, President and Chief Executive Officer

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

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