Mongolian Resource Play

[Tackler]

UGL makes progress at South Valley, Huren Tologoi

2004-08-20 17:51 ET - News Release

Mr. G. Arnold Armstrong reports

UGL MONGOLIAN PROJECTS AND DRILLING UPDATE

UGL Enterprises Ltd. has released the following update regarding its projects in Mongolia.

South Valley project

UGL has commenced a 3,500-metre drill program to test multiple geochemical and geological anomalies on its South Valley property located in Dornod aimag (province) in northeastern Mongolia. A recently completed induced polarization geophysics program contracted to Insight Geophysics of Toronto has indicated a large, strong magnitude chargeability anomaly over an area measuring approximately 1.8 by 2.0 kilometres. This large anomaly coincides with the area where sampling of weathered rock and soil samples returned four anomalous areas of significant gold and copper values, running up to 2.51 grams per tonne gold and 2.9 per cent copper. These anomalous areas are associated with quartz limonite and linionite stockworks, developed in a continuous (pervasive) manner consistent with a porphyry copper model.

Huren Tologoi project

UGL has completed a phase-one drill program on its Huren Tologoi property comprising a total of 14 holes. Assays from holes 1-3 have been released (see UGL press release in Stockwatch dated July 5, 2004) which returned widespread anomalous gold mineralization, indicative of a very robust gold-bearing system related to a large area of intense silicification and associated strong clay alteration of kaolinite and pyrophyllite in volcanic rocks. UGL is very encouraged by the early success of the Huren drill program and intends to initiate a phase-two drill program in the near future. Results from the remaining holes from the phase-one program will be released as soon as assaying is completed.

UGL is pleased to announce the appointment of Ranjeet Sundher to its board of directors. Mr. Sundher has over 15 years experience in the Canadian junior resource sector including over three years of direct involvement in Mongolian mineral project acquisitions, negotiations and operations management.

Boro Ovoo

Following a limited exploration program, UGL has decided not to further pursue its option agreement on the Boro Ovoo property.

Robert Weicker, PGeo, is UGL's qualified person for work in Mongolia and is in charge of overseeing all operations.