Vangold Resources Ltd.

Vangold Resources Ltd.

August 22, 2006 13:15 ET

Vangold Resources Ltd.: Deep Basin Test Well Spuds

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2006) - Vangold Resources Ltd. ("Vangold") (TSX VENTURE:VAN) announces the operator of the Deep Basin test well, an Alberta based oil and gas company, has spudded the well on August 16, 2006. It is expected that the well will reach total depth in approximately 30 days. The test well is located in the Alberta Foothills near Rocky Mountain House which is close to Shell's recently announced discovery at Tay River. Vangold is participating in the test well for 16.25% of the gross capital drilling costs to earn a 12% working interest (see News Release June 15, 2006). Industry rules covering "Tight Hole" applies to all working interest participants.

This deep foothills region of the Western Canadian Sedimentary Basin contains some of the most prolific multi-zone liquids-rich gas and oil wells in North America as well as some of the largest accumulations of oil and gas reserves. The area has long been a focus area for exploration and production companies and continues to be today, with announcements highlighting discoveries of significant new gas pools. The prospect is covered by high resolution 3D seismic and is close to gas processing facilities enabling a discovery to be quickly placed on production.

Vangold is a diversified natural resource company with a portfolio of 29 advanced stage projects including revenue generating oil and gas projects. In Papua New Guinea ("PNG"), drilling continues at Mt Penck (40% Vangold) where the initial diamond core drill holes have been successful in defining gold mineralization (News Release August 2, 2006). Work is also ongoing at Vangold's other jointly owned properties in PNG (News Release July 26, 2006). A program is also planned for 2006 at the Feni Islands (50% Vangold).

In Uganda, Vangold recently announced (June 26, 2006) an acquisition of 90% of seven rare metal mines through its subsidiary Horn Rare Metals Ltd. Vangold also has licenses covering over 60 sq km in the prospective Kilembe copper/cobalt belt, licenses covering over 300 sq km in the Kilo Moto gold extension region and licenses covering over 287 sq kms in the Kafunzo area which is the extension of the Tanzanian Nickel Belt. The Ugandan government is currently spending US$42 million on airborne geophysics in some of Vangold's license areas.

Vangold's revenue producing Killam North oil field in Alberta has 16 producing wells providing revenues for continued explorations. Vangold is planning high impact gas well drilling on three other projects this summer and fall.

On Behalf of the Board of


Dal Brynelsen, President and CEO

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from Vangold's expectations. Certain risk factors may also affect the actual results achieved by Vangold.

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

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