Asia Gold Corp.: Rock Sampling Outlines High-Grade Porphyry Related Copper Mineralization at Oyut Ovoo, South Central Mongolia.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 8, 2004

David C. Owens, President of Asia Gold Corp. (ASG:TSX-V), is pleased to announce that exploration work carried out in 2003 on Asia Gold's 100%-owned Oyut Ovoo Project in south-central Mongolia successfully outlined high-grade copper mineralization within a one square kilometre skarn and breccia-pipe intrusive complex.

The Oyut Ovoo prospect is located 270 kilometres south of Ulaanbaatar and about 300 kilometres north of the giant Oyu Tolgoi copper-gold deposit discovered by Ivanhoe Mines in the South Gobi region.

A total of 505 rock grab samples were collected from the Oyut Ovoo prospect during a surface exploration program between August and December 2003. Assays from 46 samples (9.1%) were greater than 1% copper and 112 samples (22%) assayed greater than 0.3% copper. The maximum assay was 8.72% copper (sample MR 52877) from an outcrop of massive magnetite-epidote skarn. The copper mineralization also is associated with high molybdenum values. A total of 104 samples (20%) assayed more than 50 parts per million (ppm) molybdenum, of which 41 (8.1%) contained greater than 200 ppm. Twelve samples returned gold values greater than 0.2 grams/tonne (g/t) gold, with a maximum of 1.2 g/t (sample MR 52622).

"The results of the exploration work at Oyut Ovoo are very encouraging and confirm the presence of a mineralized skarn-intrusive complex that has the potential to contain significant near-surface, high-grade copper mineralization," Mr. Owens said. "Oyut Ovoo is a priority target for follow-up exploration and drilling in 2004."

The Oyut Ovoo skarn-intrusive complex is characterized by silicified limestone, skarn and quartz-feldspar porphyry that crop out within an alkali granite. A series of hydrothermal breccias occur at the southwestern margin of the main intrusive complex, indicating a dynamic intrusive system. Secondary copper mineralization occurs in the breccia matrix.

A ground magnetics survey and a gradient array Induced Polarization (IP) survey also were completed on the Oyut Ovoo prospect in 2003. A total of 232 contiguous line kilometres of field magnetics defined a series of strong magnetic highs coincident with outcropping, magnetite-bearing skarn and anomalous copper-molybdenum rock geochemistry. The northern half of the Oyut Ovoo skarn-intrusive complex contains three large magnetic highs which are much larger than the outcropping and mineralized skarns identified by geological mapping.

The IP survey identified two chargeability anomalies on the Oyut Ovoo property. The first anomaly is coincident with the main skarn-intrusive complex and high-grade copper mineralization at surface. The second anomaly is one kilometre to the southeast along a northwest-southeast-trending lineament. In total, the IP survey comprised 137 line kilometres, including 74 line kilometres of reconnaissance IP and 63 line kilometres of detailed IP over the two anomalies.

Asia Gold plans to conduct a first-stage drilling program at Oyut Ovoo in March, 2004, comprising 2,000 metres in five holes. The drill holes will test the depth extension of outcropping high-grade copper mineralization and coincident geophysical anomalies.

The Oyut Ovoo rock samples were prepared for analysis by Analabs Pty. Ltd. at Ivanhoe Mines' Manlai exploration camp and assayed by Analabs Pty. Ltd. of Ulaanbaatar, Mongolia. Analabs Pty. Ltd. is a subsidiary of SGS Limited, an ISO-accredited Australian company. The geochemical sampling and assay program was conducted pursuant to a rigorous quality control program established by Ivanhoe Mines Mongolia Inc.

David Owens, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.

Asia Gold completed an Initial Public Offering in December, 2003. The company has approximately CDN$13.9 million in cash and has 14.62 million common shares issued and outstanding. Ivanhoe Mines (IVN:TSX and HUGO:NASDAQ) owns approximately 51.1% of the issued and outstanding shares of Asia Gold.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned exploration and development of mineral projects in Mongolia, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.