Uranium Bay Signs a Letter of Intent Regarding the Acquisition of 100% Interest in The Beauce Placer Gold Mine Project

  MONTREAL, QUEBEC, Jan 19 (MARKET WIRE) -- 
Uragold Bay Resources Inc. (Uragold) (TSX VENTURE: UBR), is pleased to
announce that it has signed a letter of intent with a private vendor
regarding the acquisition of up to 100% interest in the Beauce Placer
Gold Project ("Beauce Placer") located 75km southeast of Quebec City near
the town of Saint-Simon-les-Mines. The property is comprised of two
irregular claims 1.1 km by 340 metres straddling the Gilbert River in the
Beauce region of the Appalachians of southern Quebec.

    The Beauce Placer was previously explored and mined by the Beauce Placer
Company who in 1960 mentioned that ore reserve calculations done at the
time indicated a potential of 12,979,000 m3 at a grade of 0.256 g/m3 of
gold or 107,045 oz of gold. (i) (Seber 1961 GM11010). To mine the
deposit, the company purchased a Yuba dredging machine. The four stories
high, 800-ton dredge was transported in pieces from Idaho to the Beauce
region using 25 train cars before being reassembled on the property. The
Beauce Placer Company last mined the property in 1961 and in 1962.

    Historical accounts described the dredging operation as plagued with
problems. To name just a few, the large dredge was prone to frequent and
expensive mechanical breakdowns; the mining method was inefficient at
recovering the placer gold found on the property; and there was sabotage
due to labor conflicts. The Beauce Placer Company stopped operations in
1963. Only 4,378 oz of gold was reported to have been mined on the
property (Droin 2002).

    Uragold's interest in the property is to review the deposit's potential
with regard to using modern placer mining methods. Since the Beauce
Placer Company mined only 4,378 ounces of gold from the deposit Uragold's
hypothesis is that a gold resource must still exist. It is hoped that by
using modern mining methods, a low cost operation can be developed to
mine the remaining gold.

    In addition, a 1985, drilling program on the property by Les Gisments
d'Or de la Chaudiere Ltd indicated a potential deposit of a further
981,500 m3 at a grade of 0.663 g/m3 of gold or 20,000 oz of gold (i) in
paleoplacer gravel near the bedrock/overburden interface 30 metres below
the surface (Roche 1986 GM42988).

    (i) All historical resource information presented in this press release
is historical in nature and while relevant, the information was obtained
before the implementation of National Instrument 43-101 and as such does
not meet National Instrument 43-101 reporting standards. The historical
estimates should not be relied upon until the Company can confirm them.

    It is noteworthy to mention that the Beauce region was the site of
Canada's first gold rush in the 1850's, decades before the Klondike.
Similar to the Eastern Townships of Quebec, gold mineralization in the
Beauce are found as placer (disseminated) gold in the overburden;
pre-glacial (paleoplacer) gold found at the bedrock/overburden interface;
and as mineralized quartz veins. Two of the largest gold nuggets found in
Canada came from the Gilbert River, the Kilgour nugget at 52 ounces and
the McDonald nugget at 45 ounces.

    Material terms of the agreement are as follows (all amounts are expressed
in Canadian dollars). In order to acquire its interest in the claims, the
Corporation shall make the following payments to the vendor:

    - Uragold will purchase a 50% interest in the Property by issuing to the
Vendor 1,800,000 common shares of Uragold and by making a cash payment of
$7,500.

    - Uragold shall be the operator and manager of the operations.

    - Net profits are to be divided 50/50 between Uragold and the Vendor, but
this only after the net profit of the project has allowed Uragold to
receive an amount equivalent to five times (5X) the funds invested in the
Beauce Placer project by Uragold (exploration expenses and capital
investment). The agreement also includes the payment of a 3.5% NSR
royalty.

    - Finally, the Corporation will have the right, but not the obligation,
to acquire the remaining 50% interest in the concession from the Vendor
for an undivided 100% interest in the claim, by issuing to the Vendor an
additional 2,000,000 common shares of UBR. These new shares will be
subject to a four-month hold period from the date of their issuance.

    The transaction is made with a party that is non-related to the
Corporation. The letter of intention is conditional to the approval of
the Board of Directors of Uragold and the transaction is subject to
approval by regulatory authorities. Further to the acquisition and its
approval, the parties will proceed with the signature of a formal
agreement and the titles of the claims will be transferred to the
Corporation.