Uragold Start Sampling and Trial Mining in Beauce Placer Gold Property

MONTREAL, QUEBEC, Jun 03, 2010
Uragold Bay Resources Inc. (Uragold), is pleased
to announce the start of its sampling and trial mining phase of the
Beauce Placer Gold tailings project near the town of
Saint-Simon-les-Mines. The landowner (surface rights owner) has
granted Uragold full access to the property for all exploration and
mining activities.

The sampling program will be supervised by Mrs Jovette Marois eng.,
of the Centre de Technologie Minerale et de Plasturgie (CTMP) in
Thetford Mines. A caterpillar-tracked excavator will cut trenches in
the tailing mounds left over from the former Beauce Placer Gold
mining operation of 1960 to 1961. 20 channel samples will be analyzed
for gold at the CTMP by gravimetric methods. Knelson gravimetric
tests will help identify the quantity of placer gold in the tailings.
In addition to measuring the grade of gold, the placers must be
classified according to size. Knowing the distribution of fine gold
to coarse gold (nuggets) is important in the trial mining phase to
evaluate recovery rates. The samples will also be sent for
geochemical analysis for a complete measurement of gold and other
elements.

The property is about 1 km long and 400 meters wide. The Gilbert
River flows through the property parallel to the tailings. The
tailings and three floatation ponds are flanked by hills built from
the stripped sterile overburden. Forest has encroached up to the top
of the hills and the whole mining area is segregated from the Gilbert
River.

Beauce Placer Co. documented a reserve potential of 12,979,000 m3 at
a grade of 0.256 g/m3 of gold or 107,045 oz of gold (Pre 43-101,
Seber 1961 GM11010). It was reported that only 4,378 oz of gold was
recovered by the company. Historical accounts point to the following
reasons for the poor recovery rates of gold (Drouin 2002).

The Yuba dredge used by the Beauce Placer Company could not mine both
fine gold and coarse gold at once. Therefore, they decided to mine
the fine gold because its distribution was more consistent. As a
result, any gold nugget was rejected by the sieve and thrown out with
the tailings.

Two of the largest gold nuggets found in Canada came from the gravels
of St-Simon-les-Mines, the Kilgour nugget at 52 ounces and the
McDonald nugget at 45 ounces. Nugget distribution could be very
erratic however; its contribution to total gold production could be
significant.

The 800-ton dredge was inefficient at recovering the fine gold. It
was difficult to calibrate the water and material flowing through the
sluice. Much of the gold was washed out. Modern placer plants
available today are very efficient at recovering gold of all sizes.

In the 1950s, violent strikes and unionization at the asbestos mines
of southern Quebec was a turning point in the province history (Quiet
Revolution, Asbestos Strike). Attempts to unionize the Beauce Placer
miners led to labor conflicts. The dredge was repeatedly sabotaged
and prone to breakdowns.

Uragold believes that a considerable amount of gold could be found in
the tailings. If sampling results and trial mining efforts are
positive, a low cost profitable placer mining operation could be put
in operation. This could provide cash flow to the company and help
contribute to the exploration of other projects with blue sky
potential.

for chromites, asbestos and copper. The region was the site of
Canada’s first placer gold rush in the 1850s, decades before the
Klondike, since then forgotten. Despite the many gold occurrences
discovered in volcanic, intrusive and sedimentary rocks, no major
bedrock sources were uncovered to account for the placer gold.

About Uragold Bay Resources Inc.

Uragold Bay Resources Inc. is a Canadian based junior resource and
exploration company trading under the symbol UBR on the TSX Venture
Exchange. The Company has 107,894,367 shares outstanding. The Company
holds over 700 claims in the Appalachian Belt, 100% of the 314 km2
Uskawanis Uranium property located just south of the Opinaca
reservoir and 100% of the Blue Lake Base Metal and Gold property
situated close to Radisson in the James Bay region.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking
statements,” as identified in the Uragold Bay periodic filings
with Canadian Securities Regulators that involve a number of risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.

Contacts:

Uragold Bay Resources Inc.

Patrick Levasseur,

President and COO

Toll-free 1-888-666-3431

Uragold Bay Resources Inc.

Bernard J. Tourillon,

Chairman and CEO