August 15, 2005 11:53 ET

Young-Shannon Defines New, Large Geophysical Target on McMillan Gold Mine Property

TORONTO, ONTARIO--(CCNMatthews - Aug. 15, 2005) - Young-Shannon Gold Mines, Limited (TSX VENTURE:GYS) is pleased to announce that the analysis of data from of its recent Down Hole IP geophysical survey covering a portion of the Company's McMillan Gold Mine ("McMillan") optioned claims near the town of Espanola in northern Ontario, Canada has been completed. The survey was very successful and results are exciting. A new, wide, and highly conductive geophysical target, related to recently drilled gold mineralization, has been defined at least 300 metres below surface. This target occurs east of the historic underground mine workings and at least 50 metres deeper than the deepest workings.

Spectral IP surveys were completed in eight of the boreholes from diamond drilling completed by Young-Shannon in 2005 and MBMI in 2004. The data obtained have been used to construct a 3D spatial model of the mineralization.

A strong off-hole chargeability response from diamond drill hole MM-05-05, peaks from 310 - 350 metres depth. Analysis shows a broadening of this chargeability/conductivity zone to the west with the anomaly extending from 290 - 390 metres below surface. The new geophysical target also extends to the east, where the measured chargeability increases by a factor of two within a zone that is at least 30 metres wide. The geometry shows the target plunging steeply to the east and is open at depth.

The 3D modelling of the data shows that the zones of silica (quartz) flooding that host the new high grade gold zone, recently defined by the diamond drilling campaigns from this past winter and spring, are concentrated in distinct zones within a broad envelope which may be related to this newly-recognized conductive zone.

This new geophysical target will be a high priority focus for diamond drill testing follow-up expected to commence later this year.

Gold was first discovered on the McMillan property in the early 1920's. Shaft sinking and underground exploration were carried out in the late 1920's, with the shaft reaching 900 feet in depth. A 125 ton per day mill was subsequently built and operated until 1937. The mine produced 60,000 tons of ore at a recovered grade of 0.18 ounces per ton. Historical records indicate that mineralization continued below the 900 foot level, but a grade of 0.20 ounces per ton was considered uneconomic at that time. In 1985/86 the mine was dewatered and sampled underground. Sampling from different underground stopes ranged from 0.07 ounces per ton to 0.48 ounces per ton. Based on these results, a work program consisting of underground diamond drilling to determine vein continuity, and to locate areas of undeveloped gold bearing zones was recommended at that time, however, due to lack of funding, the program was not carried out. The April 2004 program of diamond drilling was based on results of the 1985/86 sampling program, and on testing geophysical targets from a 1996 vertical loop electromagnetic (EM) survey that may have indicated extensions to the mine area.

The McMillan claims comprise 34 unpatented mining claim units in Mongowin and McKinnon townships, located approximately 14 kilometres south of the town of Espanola, Ontario on the north shore of House Lake.

Young-Shannon's option agreement with MBMI was entered into in November, 2004 and enables the Company to earn a 50% interest in the McMillan property over a three year period for staged payments of $75,000 in cash and 650,000 common shares plus a three year work commitment of $900,000. Young-Shannon has the option to increase its interest to 60% by issuing an additional 250,000 common shares and spending $400,000 more on the property.

Young-Shannon has exceeded their first year work commitments on the McMillan Mine Property, having spent approximately $230,000 to date.

The geophysical crew will be mobilized within a few weeks to Young-Shannon's Chester Township property just west of the town of Gogama, Ontario, midway between Sudbury and Timmins, Ontario. There, a similar Down Hole IP survey will be completed to define vectors for targeting and ultimately diamond drilling the C-Prime gold deposit at much greater depths than what has been tested to date, which is approximately 225 m down dip, where it remains open.

Young-Shannon Gold Mines, Limited is a precious metals exploration company which holds a group of patented and unpatented claims within Chester Township located west of Highway 144 midway between Sudbury and Timmins, Ontario. It also has an option to earn a 60 % interest in the McMillan Gold Mine property, located 75 kilometres southwest of the Greater City of Sudbury. Young-Shannon Gold Mines, Limited has 21,088,825 common shares outstanding and 27,774,324 shares on a fully diluted basis and is listed on the TSX Venture Exchange under the symbol GYS.

Greg Lipton, P. Geo. is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).

Forward looking statements:

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. The nature of the geophysical response and its relationship to the known gold mineralization is a forward-looking statement. Accordingly, readers should not place undue reliance on forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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