Tonkin Exploration Update. 20 of 26 Holes Return Encouraging Results. Drilling Indicates New Mineralization at Depth. (December 21, 2006)

Denver, Colorado (December 21, 2006) - US GOLD CORPORATION (AMEX: UXG - TSX: UXG) is pleased to announce continuing exploration results at its Tonkin project located in Nevada’s Cortez Trend, 10 miles to the south of Barrick’s rich Cortez Hills gold deposit. Drilling commenced in June and has been focused in areas near previously defined mineralized material containing 1.4 million ounces of gold. The current $30 million exploration program was launched in June 2006, building on an experienced team of Nevada-based professionals with prior big-company and entrepreneurial experience.

“The team we have assembled has completed property-wide re-evaluations, updating geologic mapping, geochemical sampling, and geophysical data. As well, a unique partnership with NASA has provided US Gold access to state-of-the-art exploration technologies aiding in our efforts. This work has greatly contributed to our overall understanding of the gold-bearing system,” said Rob McEwen, Chairman and CEO. “It is still early, but we are encouraged by the fact that 20 of the 26 holes completed to date have encountered gold mineralization.”

EXPLORATION RESULTS
The first phase of the exploration program at Tonkin is designed to test for lateral and depth extensions of the previously identified mineralized material as well as to identify favorable gold host rocks and dominant mineralizing structures. Drilling to date has been confined to the region known as the Mine Corridor, which is comprised of three areas: Southern, Middle and Rooster (see Figure 1). Next year we will be drilling outside the Mine Corridor on other targets defined by mapping, geochemistry and remote sensing. Twenty-six holes have been drilled and assayed, and an additional fourteen holes, including three monitoring wells, have assays pending. So far 55,000 feet of drilling has been completed, approximately thirteen percent of the proposed program, with assays received for the first 33,500 feet.

SOUTHERN AREA
New Mineralization Encountered
A cumulative total of eight holes have been drilled in the Southern Area of the Tonkin property. Angle Hole 16 encountered new mineralization in numerous intervals starting at an approximate vertical depth of 490 ft and reaching a depth of 780 feet, the deepest mineralization discovered since the program began. Results (see Table 1) from Hole 16 include:

(opt = ounces per ton gpt = grams per tonne)

Holes 7 and 8 were drilled to the east and west of Hole 16, and encountered lower grade mineralization to vertical depths of approximately 560 feet and 490 feet, respectively.

Hole 22 was drilled to test the southern extension of mineralization encountered in Hole 16 in a relatively untested region of the Southern Area. New gold mineralization was encountered in the shallow portions of the hole (45 feet at 0.041 gold opt), and scattered low grade gold intervals were encountered at depth.

Also in the Southern Area, Hole 23 was drilled to confirm gold mineralization identified in historic drilling and to determine its controls and orientation. Highlights include:

These results confirmed the validity of previous drilling and suggest that mineralization is hosted in relatively flat-lying receptive rock units and is open to the southwest. More drilling is planned in this area to further define orientation, extent and control of the favorable gold grades encountered in Hole 23.

MIDDLE AREA
Newly Initiated Drilling
Drilling in the Middle Area recently started to test for extensions of known near-surface mineralization. Hole 15 was drilled in a newly defined target area approximately 2,000 feet west of previous drilling. It encountered trace gold with thick sections of anomalous arsenic, antimony, and mercury, which are indicators of a Carlin-style gold system. Additional drilling is currently in progress in the Middle Area, focusing on northeast and northwest trending structures and their intersections.

ROOSTER AREA
Pursuit of Feeders and Extensions
The Rooster Area is the strongest expression of Carlin-style mineralization currently identified on the Tonkin project. It is characterized by broad and deep alteration, structurally controlled mineralization, and good gold grades indicating a receptive gold bearing system.

Drilling in the northern Rooster Area has been designed to test for down-dip and lateral extensions of known mineralization along northeast and north-northwest striking controls defined by detailed mapping, geophysics and historical drilling. These structures and their intersections will continue to be the target of exploration at Rooster in 2007.

Hole 4 was completed in the northwestern portion of the Rooster Area. It is 600 feet to the northwest of Hole 1 which returned a 40-foot intercept of 0.113 gold opt as discussed in the September 6 news release. Hole 4 intercepts include:

Holes 21 and 26 were drilled to test the northern extension of Rooster mineralization. These holes are situated 560 feet north of previous drilling in untested areas and encountered numerous intervals of gold mineralization, including:

This area will continue to be explored for gold mineralization in favorable rock horizons and along structures and intersections.

Hole 30 was completed within the envelope of historic drilling at Rooster, to confirm previous vertical drilling that reached approximately 500 feet. This angle hole encountered mineralization to a depth of approximately 510 vertical feet. The best intercepts from Hole 30 begin at the surface and are summarized below:

All the results to date are summarized in Table 1.

Drilling to date has identified lateral extensions of known mineralized structures as well as some deeper gold intersections that have reinforced management’s belief in the potential of US Gold's property. The Company has eight drill rigs on the Tonkin property, with plans to increase the pace of exploration in 2007.

QUALIFIED PERSON
This news release has been prepared under the guidance of Steve Brown, Senior Geologist and Project Manager, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Tonkin Springs property. All samples were analyzed by ALS Chemex of Winnemucca, Nevada.

All assays are uncut, with analysis conducted by ALS Chemex utilizing a 30 gram fire assay change with an AA finish. Sample length is by geologic boundary with a maximum 5 foot length and core recovery averages 95-98%. Quality assurance/quality control is assured by inserting standards and blanks every 40th sample and check assays sent to second lab every 20th sample.

Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are identified by words such as "intends," "anticipates," "believes," "expects" and "hopes" and include, without limitation, statements regarding the Company's plan of business operations, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 and those set forth in the registration statements referenced above, under the caption "Risk Factors." Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.

Table 1 - Assay Results (pdf)

Figure 1 - Drill Hole Locations (pdf)

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