SOURCE: Tonogold Resources, Inc.

May 12, 2005 12:38 ET

Tonogold Resources, Inc. Forms Uranium Subsidiary

LA JOLLA, CA -- (MARKET WIRE) -- May 12, 2005 -- Tonogold Resources, Inc. (OTC: TNGL) is pleased to announce the formation of a new wholly owned subsidiary, Mesa Uranium, Inc. ("Mesa Uranium"), in order to explore for and develop uranium mining properties.

Tonogold intends to target uranium properties with unique geological and grade characteristics where technology advancements made since the last major boom of uranium in the early 1980's can be applied. Exploration techniques, processing methods and best-practice environmental requirements will be high priorities. Properties with vanadium as well as uranium in the western United States will be selectively targeted for acquisition by claim location or attractive lease terms. The new subsidiary will be self-funding and will not detract from Tonogold's gold and silver exploration activities.

Jeff Janda, President of Tonogold, said, "The uranium market has strong, long-term fundamentals with rapidly expanding demand and stagnant supply. We wanted to take advantage of the uranium expertise of our advisors and management team and give our shareholders a stake in what should be a very dynamic market."

Spot prices for uranium oxide, also known as yellowcake, have risen from $7.10 per pound in 2000 to $20 late last year. In 2005, uranium spot prices have increased 41.5% to $29 per pound. At the same time, vanadium prices have increased from $4 per pound to nearly $20 per pound. Vanadium in metal form is used for steel alloys and occurs naturally with some uranium deposits in the western United States.

The resurgence of the nuclear power industry, due to the environmental and cost advantages of uranium, combined with declining above ground stockpiles has caused the rapid upswing in the price of uranium. Production from world uranium mines now supplies only 55% of the requirements of power utilities.

The new subsidiary will be supported by a team of industry consultants that have extensive uranium experience and work has already started on projects and prospects. Janda said, "Our approach will be to utilize senior uranium specialists, all of whom were involved in uranium mining in the 1970's and 1980's, where we can apply their expertise to all aspects of Mesa Uranium's exploration and development activities. We will work on those projects that we feel give us the best value for our time and investment and that represent practical mining opportunities capable of eventual production."

Tonogold Resources, Inc. is a mineral exploration company based in La Jolla, California with active investigation of precious metal and uranium projects in the western United States, Alaska and Mexico. The company also has a project office in the Denver, Colorado area. For more information on the Company visit their website www.tonogold.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking information about Tonogold Resources, Inc. ("Tonogold") which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tonogold Resources, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy, the grade and quantity of minerals in our projects may not be economic, we do not have fee title to our properties, but derive our right through leases and the Mining Law, we are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission, we trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities, mining is subject to extensive environmental regulations and can create substantial environmental liabilities, gold, silver and uranium are commodities which have substantial price fluctuations, a drop in gold, silver, and/or uranium prices could adversely affect future profitability and/or capital raising efforts, and mining can be dangerous and present operation hazards for employees and contractors. Readers are cautioned not to place undue reliance on these forward-looking statements. Tonogold does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information