Threegold Resources Inc.
TSX VENTURE : THG

Threegold Resources Inc.

November 22, 2010 10:35 ET

Threegold Resources Inc.: Significant Gold Grades Discovered, Up to 26.7 Grams Per Tonne at South Bay Project, Val-d'Or, Quebec

VAL-D'OR, QUÉBEC, CANADA--(Marketwire - Nov. 22, 2010) - Threegold Resources Inc. (TSX VENTURE:THG) is pleased to announce results for surface channel samples collected on the South Bay property, 40 km east of Val-d'Or, Québec. Significant gold values of up to 26.7 g/t were received and the results confirm the potential of a high-grade discovery in a prolific gold mining region of Canada.

Threegold's management is highly enthusiastic about the initial results and has decided to immediately mobilize a drill to the project to verify the extensions of the surface discovery at depth and along strike. The program will consist of a series of short holes aimed directly below the exposed mineralized zone. Surface magnetometric and Induced Polarization geophysical surveys will also be carried out to characterize the discovery area.

Channel Sample –
North Zone
     
Channel Length Au
(#) (m) (g/t)
2.0 E 1.05 2.36
3.5 E 0.50 4.01
6.8 E 1.10 1.83
11.6 E 4.30 1.88
15.5 E 0.60 1.02
16.5 E 0.75 26.69

The company started its first work program on the South Bay property, some 40 km due east of Val-d'Or, during the fall of 2010 to locate historical gold occurrences. Some historical trenches were found, cleared and stripped using a backhoe. The exposed rocks were felsic to intermediate intrusives exhibiting significant silicification and sericitization, cut by folded quartz veins and veinlets carrying substantial pyrite mineralization. Threegold sampled the surface by cutting channels at various intervals and collecting the material. Two (2) additional areas were also stripped and channel-sampled on the South Bay property, and results for these are pending. These additional areas are believed to be part of the historical occurrences previously reported for the project but never properly located.

The fifty (50) channel samples were sent to Actlabs (Activation Laboratories Ltd) in Ste-Germaine-de-Boulé, Québec, for assaying using conventional Fire Assay with Atomic Absorption finish on a 30-g pulverized split portion. Results exceeding 3,000 ppm were reassayed with a gravimetric finish. Exploration and sampling of the project was carried out under the direct supervision of Robert Tremblay, P.Geo. Samples were delivered directly to the laboratory for processing.

Private Placement

Threegold also wishes to announce that it has arranged a private placement to raise up to $1,000,000 by issuing 4,000,000 units at a price of $0.25 per unit. Each unit is be comprised of one (1) common share of the company and one share purchase warrant entitling the holder to purchase one additional common share of the company at a price of $0.35 for a period of one year following the closing. The warrants include an acceleration clause to the effect that if, at any time after four (4) months and one (1) day following the closing of the private placement, the trading price of the common shares of Threegold on the TSX Venture Exchange is equal to or exceeds $0.45 for 20 consecutive trading days, Threegold shall be entitled to notify the holders of warrants of its intention to force the exercise of the warrants.

In connection with the private placement, a cash commission of up to 8% may be paid to agents and 8% to brokers.

This press release was prepared by Antoine Fournier, P.Geo., vice-president exploration for Threegold Resources Inc. and Qualified Person as defined by NI43-101.

ABOUT THREEGOLD

Threegold Resources is actively pursuing gold discoveries in three projects in prolific mining and exploration camps in Ontario and Québec. The 100% owned Adanac project is immediately adjacent to Gold Bullion's Granada discovery and west of Osisko's 12M ounce deposit on the Abitibi belt. The South Bay Project has yielded a significant surface discovery near Val-d'Or and the Company has recently acquired land in the Shining Tree Camp on the eastern extension of the Cadillac–Larder Lake Fault Zone. Management is evaluating opportunities to create shareholder value with its recent Rare Earth Element discovery and its Base Metal project in the Gaspé Peninsula.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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