Mr. Marc Blythe reports

AU GOLD CORP INCREASES PRIVATE PLACEMENT TO $300,000

Au Gold Corp. has increased the size of the previously announced placement to $300,000. The placement now consists of six million units priced at five cents each. Each unit comprises one share and one whole 10-cent warrant valid for two years.

The company is very pleased with the response to the placement, and thanks new and existing shareholders for their support.

The closing of the private placement is expected to occur soon and is subject to receipt of all necessary regulatory approvals, including the TSX Venture Exchange. The securities issued with respect to the private placement will be subject to a hold period of four months and one day in accordance with applicable securities laws.

We seek Safe Harbor.