UGL Enterprises Ltd.

UGL Enterprises Ltd.

May 31, 2005 17:14 ET

UGL Enterprise Ltd.: Progress Report on Copper and Gold Drill Projects, Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - UGL Enterprise Ltd. (the "Company") (TSX VENTURE:UGS), is pleased to provide a progress report on the Company's copper and gold projects in Mongolia, including the Shavar Uul, the Bayan Undur and the Khondloy Properties. A summary of results to date from the diamond drill program on the South Valley Property are also provided.

Exploration is underway and continuing on our 100% owned Mongolian copper gold portfolio. Based on preliminary geological and sampling completed in the last field season, UGL's geologists have recommended a program of further detailed mapping, prospecting and sampling. The program will commence on three projects - the Shavar Uul, Bayan Undur and Khondloy - to better define Cu-Au targets. This exploration program will determine the areas within the licenses that will be followed up with geophysics and diamond drilling.

Exploration crews are being mobilized with the plan to complete the exploration program over the next 3 months to allow for potential diamond drilling prior to the winter season. The three licenses to be worked are all situated within the Gobi area of Mongolia.

South Valley Summary Of Drill Results

The South Valley property is located near Choilbasen in the Dornod province, and is held under an option agreement with a Mongolian license-holder to earn a 60-percent interest. The property is prospective for copper-gold porphyry mineralization, and previous surface sampling and trenching work indicated four anomalous zones for copper and gold.

The Company completed a diamond drill program of 12 holes (with one additional abandoned hole) comprising 3,429 meters. Ten of the twelve holes were directed at porphyry targets, defined by soil and rock geochemistry and geophysics (Magnetics and Induced Polarization). Holes SV-11 and SV-12, were directed at geological targets outside the interpreted porphyry system. All holes except SV-11 and SV-12, returned significant and/or anomalous values of copper, gold and silver. The following is a presentation of only the higher value intervals, however wide zones of anomalous values of copper and gold mineralization were also intersected. Holes SV-1 to SV-4 were previously released (October 10, 2004), but the highlights are restated below.

Hole # From To Intersection Mineralization
SV-01 245.0m 265.8m 20.8m 0.82 g/t Au, 2.6 g/t Ag
SV-02 205.8m 208.8m 3.0m 1.27 g/t Au, 12.7 g/t Ag
SV-03 274.0m 280.0m 6.0m 0.26 g/t Au, 6.7 g/t Ag
SV-04 28.0m 249.0m 221.0m 0.09 g/t Au, 3.7 g/t Ag,
0.20% Cu
Including 10.0m 21.0m 11.0m 1.07 g/t Au, 18.9 g/t Ag,
0.06% Cu
Above data was previously released, new data follows below:
SV-05 188.0m 205.0m 17.0m 1.27 g/t Au, 0.8 g/t Ag
SV-06 43.0m 56.0m 13.0m 0.20 g/t Au, 3.1 g/t Ag,
0.20% Cu
SV-07 Abandoned at 41.0 m, due to ground conditions.
SV-07A 23.0m 217.0m 94.0m 0.10 g/t Au, 1.8 g/t Ag,
0.10% Cu
SV-08 21.0m 46.0m 25.0m 0.06 g/t Au, 0.9 g/t Ag,
0.12% Cu
SV-09 67.0m 121.0m 54.0m 0.10 g/t Au, 8.2 g/t Ag,
0.32% Cu
interval 260.0m 386.0m 126.0m 0.10 g/t Au, 2.3 g/t Ag,
0.20% Cu
SV-10 73.0m 80.0m 7.0m 3.38 g/t Au, 24.2 g/t Ag,
0.16% Cu
Interval 190.6m 240.6m 50.0m 0.23 g/t Au, 13.3 g/t Ag,
0.29% Cu
SV-11 No significant values, depth 88.1 m.
SV-12 No significant values, depth 15.7 m.

Significant gold and copper values contained within multi-phase sulphide mineralization related to a complex porphyry deposit have been encountered in ten diamond drill holes in this Phase 1 program. The target is a large, bulk mineable porphyry deposit with significant values of gold, copper and silver, and occasionally by-product credits of lead and zinc. The project remains under review with plans for 2005 not yet finalized.

Drilling was conducted by Can-Asia Drilling of Mongolia, with logistical support supplied by Mine Info of Mongolia. This exploration program was under the direction of Robert Weicker, PGeo, the company's Qualified Person under NI 43-101, who oversaw the preparation of this section of this release. UGL maintains a quality control program to ensure best practice in sampling and analysis of surface and drill core samples. All rock samples are prepared and analyzed by SGS Mongolia LLC (formerly SGS Analabs) of Ulan Bator, Mongolia. Standard and blank samples were inserted every 20th drill core sample.


Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.

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

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