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[december]

U.S. Gold Corporation Consolidating Cortez Trend in Nevada


2006-03-05 18:25 ET - News Release

DENVER -- (Business Wire) -- March 5, 2006



INTENDS TO ACQUIRE 4 COMPANIES

White Knight Resources, Nevada Pacific Gold, Coral Gold & Tone
Resources

LARGER PROPERTY POSITION, STRONGER TREASURY, AGGRESSIVE
EXPLORATION, MULTIPLE TARGETS

U.S. Gold Corporation (OTCBB:USGL) today announced that it
intends to acquire, in stock transactions, all of the outstanding
common shares of four companies that are exploring in the Cortez
Trend in Nevada. These companies, White Knight Resources Ltd. (TSX
VENTURE:WKR), Nevada Pacific Gold Ltd. (TSX VENTURE:NPG), Coral Gold
Resources Ltd. (TSX VENTURE:CGR), and Tone Resources Ltd. (TSX
VENTURE:TNS), have mineral properties that are adjacent to or near
U.S. Gold's Tonkin Springs property. Together these mineral
properties would represent a significant land position and
consolidation in the Cortez Trend.

This proposal was made in letters sent today by Rob McEwen,
Chairman and Chief Executive Officer of U.S. Gold, to the chief
executive officers of each of the subject companies. U.S. Gold's
proposal represents a premium of 25% to the closing stock prices of
each company's shares on March 3, 2006.

Under this proposal, U.S. Gold would issue:

- 0.35 share of U.S. Gold common stock for each outstanding
common share of White Knight;

- 0.23 share of U.S. Gold common stock for each outstanding
common share of Nevada Pacific Gold;

- 0.63 share of U.S. Gold common stock for each outstanding
common share of Coral Gold; and

- 0.26 share of U.S. Gold common stock for each outstanding
common share of Tone Resources, representing in the aggregate
approximately US$256.9 million (C$291.7 million) total value based on
the closing price of U.S. Gold's common stock on March 3, 2006.

The transactions are subject to a number of conditions, including
determination of the precise forms of the transactions, due diligence
and shareholder and regulatory approvals.

Rob McEwen, Chairman and Chief Executive Officer of U.S. Gold,
said: "As I have frequently stated, our goal is to build the premier
exploration company in Nevada. This initiative represents a
significant step in that direction. The combination of these
companies should appeal to a larger group of investors and should
offer the potential for more share appreciation than any one company
on its own. The new combined company could provide the land package
of a major, the balance sheet strength and market liquidity of an
intermediate and the upside price leverage to discovery of a junior.
Each company brings an outstanding technical team. The combined
company would allow us to bring these teams together."

The Board of Directors of U.S. Gold formed a special committee to
evaluate the terms of each of the transactions in recognition of,
among other things, the equity interests of Mr. McEwen in the each of
the four companies.

The figures presented in this release are based upon the current
exchange rates for US and Canadian currency. The currency exchange
rates may vary before the consummation of the transactions.

Cautionary Statement

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 sometimes 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 and involve a
number of risks and uncertainties that could cause actual results to
differ materially from projected results. Such factors include, among
others, the willingness and ability of third parties to honor their
contractual obligations, the decisions of third parties over which
the Company has no control, commodity prices, environmental and
government regulations, availability of financing, judicial
proceedings, force majeure events, and other risk factors as
described from time to time in the Company's filings with the
Securities and Exchange Commission. Many of these factors are beyond
the Company's ability to control or predict. 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.

This communication is neither an offer to purchase, nor a
solicitation of an offer to sell, shares of U.S. Gold Corporation or
any other entity. This communication is not a solicitation of a proxy
from a security holder of U.S. Gold or any of the subject companies.
If a transaction is agreed upon, or an offer commenced, U.S. Gold
will file a proxy statement/prospectus and any other relevant
documents concerning the proposed transaction with the Securities and
Exchange Commission and the securities commission or equivalent
regulatory authorities in Canada. YOU ARE URGED TO READ ANY SUCH
PROXY STATEMENT/PROSPECTUS IF AND WHEN IT BECOMES AVAILABLE, AND ANY
OTHER RELEVANT DOCUMENTS IF AND WHEN FILED WITH THE SEC AND THE
SECURITIES COMMISSION OR EQUIVALENT REGULATORY AUTHORITIES IN CANADA,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to
obtain any such proxy statement/prospectus (if and when it becomes
available) and any other documents filed with the SEC free of charge
at the SEC's website, www.sec.gov. In addition, you may obtain the
proxy statement/prospectus (if and when it becomes available) and the
other documents filed by the U.S. Gold with the SEC by requesting
them in writing from U.S. Gold, Attention: Investor Relations,
Telephone: [phone].



U.S. Gold Corporation (OTC Bulletin Board:USGL)
Contacts:

U.S. Gold Corporation
William F. Pass
Vice President and Chief Financial Officer
[phone]
Fax: [phone]
[e-mail]
OR
U.S. Gold Corporation
Ian Ball
Investor Relations
[phone]
Fax: [phone]
[e-mail]