Mr. Marc Blythe reports

AU GOLD CORP FINALIZES HISTORICAL LONG SECTION RECONSTRUCTION AT ITS HAVELOCK GOLD-ANTIMONY PROJECT, VICTORIA, AUSTRALIA

Au Gold Corp. has provided details of the recent research and subsequent historical long-section reconstruction along the Shaw-McFarlane trend (SMT) at its Havelock gold-antimony project in Victoria, Australia.

The company has completed its research and compiled the findings from a series of documented historical shafts (approximately 17) and significant workings along the central portion of the Havelock property spanning a strike length of five kilometres (km) of the nine km Shaw-McFarlane trend. The bulk of the historical gold production is reported from a series of mines within a 2.34 km central portion of the trend.

Between 1864 and 1891, the total recorded hard rock gold production from the mines along the SMT was approximately 17,097 ounces at an average grade of 28.7 grams per tonne (g/t) gold. The most extensive series of workings are situated at Shaw's Main, where approximately 11,400 ounces of gold was extracted with the lowest level of the mine recorded at 500 feet (152 metres (m)). All other mines along the trend were worked to levels shallower than 350 feet (107 m).

Marc Blythe, founder and chief executive officer of Au Gold, comments: "The extensive reconstruction of these historical production records is a critical step in our understanding of the reef systems developed at Havelock. Past shallow high-grade gold production at multiple sites along the trend reinforces our belief in the potential for significant discoveries beneath the historical workings".

Each of the past-producing mines was owned and operated by separate, publicly traded companies all now inoperative. Production reports were filed by mine managers on a quarterly basis and contained highlights, interesting developments and generalizations often only amounting to several short paragraphs. At several of the mines, documentation of parallel gold-bearing reefs is reported, some of which appear to have never received follow up. One example of this is described at McFarlane's where the mine manager reported an exploration crosscut in favourable geological conditions on the 250-foot (76-metre) level. The crosscut encountered "a strong body of laminated quartz 2 feet thick, highly mineralized and throwing out a strong body of water." There are no records of additional work on this parallel reef.

During the Havelock mining boom (1864 and 1891), much if not all of the ground was staked for mining licences along the SMT as was much of the ground peripheral to the trend. This is visually apparent from the vast amount of shallow surface workings across large areas of the Havelock exploration licence. Groups and syndicates were established forming companies, which in turn sought financing to develop mines through the public markets of the day. Historical records suggest only 12 companies managed to gather sufficient funds to develop mines on their respective licences. It is considered likely that the gaps between the reconstructed mines on the SMT long section are a function of the licence holder's inability to secure financing for development.

In addition to the reconstructed long section, records collated for each mine contain a wealth of information about the conditions, mineralization and thickness of quartz veins. Au Gold is using this information to identify key sections where it believes the highest grade/thicknesses exist and to target exploration programs below these zones. During this era, grades were not assayed from samples at the mine. Gold content was obtained from actual crushing of mined material and gravity separation using stamp battery mills. The historical records provide subjective commentary about the gold content of the quartz veins, based on visual observation by mine workers.

Au Gold cautions the reader that the information collated predates the introduction of National Instrument 43-101. Despite recorded historical production, no mineral resources exist on the project and there is no certainty that further exploration will result in the definition of mineral resources.

Next steps

Au Gold is currently collating and assessing all historical mine production and report data to direct the phase 1 diamond drill testing of the highest-priority targets. Detailed long-section target data and drill rationale will be released shortly.

The company continues to engage with the community, in particular private landowners within areas of interest on the project.

Qualified person

Technical information in this news release was prepared under the supervision of William Wengzynowski, PEng, a qualified person as defined by NI 43-101. Mr. Wengzynowski is Au Gold's exploration manager.

About Au Gold Corp.

Au Gold is a gold exploration company focused on advancing its flagship Havelock gold-antimony project in the Victorian gold fields in Australia and the Ponderosa gold project in the Spences Bridge gold belt in British Columbia, Canada

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