Uragold Signs Letter of Intent Granting it an Exclusive Option to Earn a 50% Undivided Interest in Golden Hope Mines Bellechase-Timmins Gold Deposit

MONTREAL, QUEBEC--(Marketwired - Feb. 24, 2014) - Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE:UBR), is pleased to announce that it has signed a Letter of Intent ("LOI") with Golden Hope Mines ("GNH") (TSX VENTURE:GNH) granting Uragold the sole and exclusive option to earn a 50% (fifty percent) undivided interest in the Bellechasse-Timmins ("B-T") Gold Deposit. Uragold can earn its interest by advancing the B-T Gold Deposit project up to a small-scale (2,000 MT/day) surface mine. GNH's B-T property is located in the Beauce region of southeastern Quebec, 50 km north east of Uragold's Beauce Placer Gold project.

In August 2012, GNH published an uncapped resource estimate of an indicated resource of 313,900 ounces gold (2.9 million tonnes grading 3.36 g/t Au) and an inferred resource of 102,000 ounces gold (2.17 million tonnes grading 1.46 g/t Au) using a cut-off grade of 0.60 g/t.

Furthermore, GNH's many bulk-sampling campaigns revealed extensive areas of surface mineralization averaging approximately 3 g/t Au. Notable were sampled areas averaging up to 10 g/t Au (Trench 09A).

Uragold strongly believes that, similar to its Beauce Placer project, it is possible to develop a small-scale (2,000 MT/day) surface gold mining operation on the B-T property. Developing in parallel the B-T property and the Beauce Placer property will benefit both companies by providing greater geological and operational synergies such as cost savings.

The B-T property and the Beauce Placer property have many points in commons, key among them is the fact that the deposits are located in the Magog Group geological formation and they are both "nuggety" type deposits.

Under the terms of the LOI, Uragold will be responsible for obtaining all required permits, approvals, and documentation associated with going into production, in return for a 30% interest in the property. Uragold will then have 120 days to obtain project financing, which, if successful, will earn it a further 20% interest, giving Uragold a 50% interest in the B-T deposit. The companies will then form a Joint Venture (JV) for the operation of the mine, with Uragold serving as operator. GNH will have a carried interest into production, and will receive a 50% Net Proceeds Royalty ("NPR") on the gold produced. (A feasibility study has not been completed and there is no certainty the proposed operation will be economically viable.)