News Release

Vancouver – The B.C. Securities Commission has permanently cease-traded a Nevada-based private mineral exploration company for illegally distributing securities to B.C. residents.

American Gold Mining Corp. records showed that it has 193 shareholders -- 35 of them from B.C. The company has not filed a preliminary prospectus or prospectus as required under section 61 of the Securities Act nor has it obtained any registration under section 34 of the Act to distribute its shares in B.C.

Ronald V. Markham, of Reno, Nevada, is American Gold ‘s founder and president. In 1997, the commission imposed a life-time ban from the B.C. capital markets on Markham, and any company that he controlled, after it was determined that he had perpetrated a fraud on Mindoro Corp. and B.C. residents who had invested in the company.

In the February 1997 decision, the commission stated that Markham was “the ultimate con man” whose “conduct is highly prejudicial to the public interest and warrants the severest sanction.”

As part of the 1997 decision, Markham was ordered to pay a $100,000 administrative penalty, the maximum amount that could be ordered against an individual at that time.

The commission noted that American Gold’s corporate profile section of its public website, while providing an extensive description of Markham’s history in the last 34 years in the mining industry in Canada and U.S., makes no mention of the commission enforcement proceedings or the regulatory orders made against Markham.

Markham has been in custody in Nevada since March 2003 pending the resolution of criminal charges.

In its decision released today, commission panel members found that Markham, as the founder, sole director and person directing the affairs of American Gold, controls American Gold.

“The commission’s earlier [1997] orders against Markham, prohibits him and any company that he controls from trading in British Columbia’s capital markets,” said the panel in ordering the cease trade against American Gold’s securities.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision can be viewed in the documents database of the Commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.