Asia Gold Discovers Epithermal Style Gold Mineralization on the Yagaan Prospect in the Gobi Region, South Mongolia.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 14, 2004

David C. Owens, President of Asia Gold Corp. (ASG:TSX-V) is pleased to report that widespread and significant gold mineralization has been discovered at the Yagaan prospect during preliminary reconnaissance exploration of the company's 100%-owned Western Gobi property in southern Mongolia. The mineralization at Yagaan exhibits alteration and textural features indicative of a high-sulphidation epithermal-style gold system.

Asia Gold collected 98 rock grab samples from the Yagaan prospect in 2003. Assays from 11 samples (11%) were greater than 1.0 gram/tonne (g/t) gold, including four high-grade samples assaying over 10.0 g/t gold. The maximum gold assay was 21.4 g/t. The 11 samples over 1.0 g/t gold were collected from an area measuring 300 metres by 150 metres. An additional 20 samples (20%) assayed in the range 0.25 g/t to 1.0 g/t gold. An arsenic geochemical anomaly with an indicated strike length of 1.2 kilometres extends over the area. The anomaly is partially coincident with the high gold values.

The Yagaan prospect occurs within a large Landsat anomaly measuring 4.9 kilometres by 1.1 kilometres. The main target is an elongated ridge with a resistive cap of silicified volcanics. The upper part of the ridge displays intense silica, alunite, kaolinite and sericite alteration in association with local hydrothermal brecciation. The high-grade gold mineralization occurs in a zone within the silicified volcanics containing up to 20% sheeted and stockwork quartz veins. The veins display banded, colloform and vuggy textures. The zone of alteration and silicification remains open to the northeast.

The Yagaan prospect is located 300 kilometres west of the provincial capital of Dalanzadgad. Asia Gold's Western Gobi property comprises 35 contiguous licenses with an area of 35,812 square kilometres. The property is located within the Tien Shan Gold - Copper metallogenic belt that hosts large-scale copper and gold deposits in China, Mongolia and Central Asia, including the giant Oyu Tolgoi copper-gold porphyry in the south Gobi region of Mongolia, approximately 400 kilometres east of Yagaan.

Asia Gold plans to conduct follow-up exploration at Yagaan in the spring of 2004. The work will include detailed mapping, geochemical sampling, trenching and ground geophysics. Priority targets identified by this work will be drill tested.

The Yagaan 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 QC program established by Ivanhoe Mines Mongolia Inc.

David C. 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 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 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.