SOURCE: Vangold Resources Ltd.

May 23, 2007 17:23 ET

Vangold Enters Into Exclusive Petroleum Exploration Production Sharing Agreement for the Exploration of 13,775 Sq. Kms in Armenia

VANCOUVER, BC -- (MARKET WIRE) -- May 23, 2007 -- Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") announces that it has entered into an agreement to participate in a Production Sharing Agreement (the "PSA") between the Ministry of Energy of Armenia and Blackstairs Energy plc ("Blackstairs"). Vangold will participate as to a 50% working interest in Blocks 4, 5 and 6, which cover an area of 13,775 sq. km (over 3.4 million acres) in central and southern Armenia. Under the PSA, the term of exploration is five years, which may be extended (subject to an agreed work program) by two additional periods, each of two years. The total financial commitment for five years is US$2.4M of which Vangold will expend US$1.2M. The Blocks are governed exclusively by this PSA, which was effective as of April 27th, 2007. With respect to Block 6, Blackstairs and Vangold have yet to complete the exact terms of Vangold's acquisition as to a half interest partner.

Dal Brynelsen, President and CEO of Vangold, states: "I am very pleased with this acquisition on two fronts. These particular concessions encompass half of Armenia and are adjacent to Iran, Azerbaijan and Georgia, all countries with very extensive oil and gas resources. We believe a similar potential exists in southern Armenia. We are very pleased to have aligned ourselves with executive oil and gas experts from Blackstairs who have extensive exploration and development experience in both Armenia and in east Africa. We look forward to working closely with Mr. Sheehan and his crew not only in Armenia but also in Rwanda and Kenya. The addition of the Armenian sedimentary basin brings Vangold's oil and gas concessions in east Africa and Armenia to a total of 45,200 sq. kms."

Blackstairs Energy Plc

Blackstairs, a private company based in Dublin, Ireland, will operate the Blocks under the terms of the PSA. An office is being opened in Yerevan, an experienced General Manager, Mr. Tim Papworth, has been appointed, and the recruitment of key technical and commercial staff is underway. Mr. Papworth is a UK-based petroleum exploration consultant with over thirty years of experience in areas including the North Sea, onshore UK, Libya, Egypt, Tunisia, Malaysia, Gabon, Namibia, Georgia and Russia. He has worked intermittently in Armenia since 1994. The Technical Summary included in this news release was authored by Mr. Papworth.

The operation in Armenia will also be supported by other members of the Blackstairs' team of experienced geological, geophysical and petroleum engineering staff including the Managing Director of Blackstairs Mr. Gerard Sheehan, B.Sc., M.Sc., FRAS and Mr. John D. Scott, B.Sc., M.Sc. Mr. Sheehan is a former Exploration Manager and New Ventures Manager for Tullow Oil plc. Throughout his nineteen years with Tullow, Mr. Sheehan worked on a variety of petroleum projects in Africa, the Indian Subcontinent and Eastern and Central Europe. Mr. Sheehan resigned from Tullow in July 2006 to concentrate on the development of Blackstairs. Mr. Sheehan is a member of the Society of Exploration Geophysicists, the American Association of Petroleum Geologists and a Fellow of the Royal Astronomical Society.

Mr. Scott is a non-executive director of Blackstairs and is a petroleum engineer with over 35 years' experience in the oil sector. His extensive career includes the position of Petroleum Engineering Manager for Tullow Oil plc where he assumed responsibility for all of Tullow's field development projects in the UK, Syria, Pakistan, Bangladesh and across Africa. Mr. Scott was also the Engineering Manager for Ranger Oil from 1986 to 1994. Mr. Scott is a member of the Society of Petroleum Engineers, the Society of Professional Well Log Analysts and an Associate of International Petroleum Negotiators.

As reported by Vangold on March 1, 2007, Tullow had announced that its Kingfisher-1 exploration well in Block 3A in Uganda (50% Tullow: 50% Heritage Oil) was flowing 13,893 bopd in total. This Ugandan discovery is part of the Albertine Graben which may extend into Vangold's White Elephant concession which is 7,208 sq. kms in Rwanda, not 2,708 as previously announced by Vangold. Vangold is very pleased that Messrs. Sheehan and Scott will also provide their extensive expertise to the geological evaluation of this area.

Work Program Armenia

Blackstairs and Vangold will undertake a comprehensive technical program. The objective of these programs is to elucidate the petroleum system, high-grade the most prospective areas, and identify prospects which may be considered for additional delineation or drilling.

The projects identified for the initial phase of exploration are:

*  Collation and re-assessment of the existing technical database
*  Reprocessing of suitable geophysical data, including seismic data
*  Satellite Imagery interpretation
*  Gravity Surveys
*  Geochemical surveys
*  Field geological mapping
*  Acquisition of at least 170 km. of 2D seismic.

Brief Technical Summary of the SE Armenia Licence Area, Blocks 4, 5 & 6

Armenia lies within the Caucasus orogenic belt situated between the Black and Caspian seas. This orogenic belt was formed as a result of the closure of a number of Tethyan Ocean tracts, since as long ago as the Devonian. The remnants of some of these paleo-oceans are represented in Armenia by up to three narrow, discontinuous belts of ophiolites, which strike approximately north-west to south-east. The outcropping ophiolites range in age from Jurassic to Cretaceous. They do not necessarily represent fully oceanic material, but may instead be parts of the floors of narrow marine basins similar to the present Gulf of Suez. These ophiolite belts serve to divide the country into tectonic zones (see below).

Please click on link provided to view tectonic zones: http://www.usetdas.com/maps/Vangold/vangoldbasinmay23x1x1.jpg

Graphic hosted by Filing Services Canada Inc. website.

The south-western zone is represented by three basins, the Oktemberyan, Artashat, and Surinaven. They lie along the course of the present day River Araks, which forms the border with Turkey. They are referred to collectively as the Ararat Intermontane Depression. Their sedimentary section is Tertiary in age, which is floored by ophiolites (Cretaceous / Jurassic) or Paleozoic sediments. These basins lie within Transeuro Energy operated Block 2, due west of Block 4, with part of the Surinaven Basin within Block 5. Gas prospects exist within the Oktemberyan Basin.

To the north-east, the section rises onto a regional high composed of Paleozoic metasediments, before dipping again into a large sedimentary basin referred to as the Central Depression. These sediments range in age from Devonian to Recent. Folding, wrench faulting, and possibly reverse and thrust faulting, are all recognised structural phenomena within this zone. Near the north-western end of the Central depression lies the Aragats volcano, dormant since Pliocene times.

Further north-east, a major tectonic suture occurs within the Sevan-Shirak zone, and Cretaceous and Jurassic age ophiolites outcrop within it and along the northern margin. The Sevan-Shirak zone itself is represented by Middle Eocene tuffs and associated volcanic vents and intrusives. Finally, in the north of Armenia, the Somkhet Karabakh and Bazum zones contain Middle Jurassic to Cretaceous sediments overlying basement. These are deformed by reverse faulting and thrusting and penetrated by igneous intrusives. The section dips regionally northwards into the oil productive Kura Depression of Georgia and Azerbaijan.

The Central Depression, which covers much of the SE Armenia Licence area, has been subdivided into two tectonic zones -- the Yerevan-Ordubad zone in the north and the Miskham-Zangezur zone in the south (in Block 6). The former is possibly the more prospective, with most exploration having been carried out in its western part, in the Near Yerevan Depression in Block 2, where oil has been recovered from a borehole east of Yerevan. Similar prospects may exist further east into Block 4; oil shows were seen in the Yeranos borehole just southwest of Lake Sevan.

Based upon gravity data, the Central Depression can be subdivided into at least seven sub-basins, these being, from west to east -- Aragats Depression, Fontan Depression (potential oil source area in NE Block 2, extending into Block 5), Near Yerevan Depression, Sevan Depression (in central Block 4), Chatma-Vedi Depression (far west Block 5), Vardenis Syncline (SE of Lake Sevan) and Vayotsdzor Depression (central and south Block 5). The Kapan block (Jurassic and Cretaceous in age) in east Block 6 may also be prospective.

A summary of oil and gas indications for the general area are shown below:

* oil traces found in the Paleocene/Upper Cretaceous of the Azat-1 well
  (eight kms from western border of Block 4), and one cubic metre of oil
  recovered (and several hundred metres of oil shows) from Paleocene in
  Shorakhpur-1P well, eight kms further west;
* oil shows in the Upper Eocene of the Garni-1G well (eight kms from
  western border of Block 4), and oil found in the Middle Eocene of
  Shorakhpur-1P;
* medium/light oil was recovered from drilling muds in the Mid-Jurassic
  of the Akhkaklu-3 borehole, north of Block 4;
* oil seeps seen in the old Yeranos borehole, SE of Lake Sevan (Block 4);
* gas seeps recorded in Lake Sevan and nearby shallow boreholes (Block 4);
* gas shows in the Vedi-1T well in the Cretaceous (western part of
  Block 5);
* heavy, waxy, asphaltic residual oil found within Triassic coals in the
  Ghermanis-4 borehole, west of Yeghegnadzor (Block 5);
* the presence of Permian organic rich, mature, oil- and gas-prone
  calcareous shales and mudstones in the general area  (blocks 5, 6);
* bitumen found in the Shahumian borehole and the Coniacian of the
  Spitakjour River area (Block 6), which may be of Devonian origin, and
* an unsubstantiated report of an oil show  in the Meghri area (Block 6).
Please click on link provided to view Armenian map: http://www.usetdas.com/maps/Vangold/vangoldarmeniamay23.jpg

Graphic hosted by Filing Services Canada Inc. website.

To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca.

On Behalf of the Board of
VANGOLD RESOURCES LTD.

"Dal Brynelsen"
Dal Brynelsen, President and CEO

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

Vangold Resources Ltd.
Suite 1730, 650 West Georgia Street
P.O. Box 11622
Vancouver, BC
V6B 4N9
Phone: (604) 684-1974
Fax: (604) 685-5970
www.vangold.ca

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