BacTech to Acquire 55% Joint Venture Interest to Produce Gold at Tonkin Springs, Nevada.

Business Editors

TORONTO--(BUSINESS WIRE)--May 5, 2003

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BacTech Enviromet Corporation ("BacTech") (TSX Venture:YBA) announced today that it has entered into a Letter of Agreement with U.S. Gold Corporation (OTCBB:USGL) giving BacTech the right to acquire a 55% interest in the Tonkin Springs gold mine in Eureka County, Nevada. BacTech can purchase the 55% interest for US$1.75 million in cash payments and the obligation to fund the first US$12 million of expenditures to put the property back into production. The transaction must close on or before July 31, 2003 (the "Closing") and is contingent upon satisfactory completion of pre-production engineering, permit amendments, project financing, definitive agreements and regulatory approvals. BacTech will be the operator of the joint venture.

BacTech is a world leader in the bioleaching of sulphide gold ores with their commercially proven bacterial oxidation technology. The company has successfully commissioned 3 bioleaching gold plants and has a strategic alliance with Mintek of South Africa (South Africa's national metallurgical research organization).

U.S. Gold's Tonkin Springs gold mine encompasses 36 square miles located on the prolific Cortez Gold Trend in Nevada. A gold resource of 1,400,000 ounces has been defined at the mine and, in addition, facilities which include a 2,000 ton per day mill with a bioleaching circuit and complete mine, mill and tailings infrastructure. In 2002, U.S. Gold licensed Newmont Mining Corporation's commercially proven N2TEC flotation technology that allows for gold sulphides at Tonkin Springs to be efficiently concentrated in preparation for bioleaching. BacTech anticipates minimal retrofitting of the existing bioleaching circuit in order to apply their commercially proven, proprietary bioleaching technology to process the sulphide gold concentrates at Tonkin Springs.

Both BacTech and U.S. Gold are motivated to establish gold production at Tonkin Springs. Cash flow from the mine will be used to continue exploration on the well-located property. In addition, the Tonkin Springs joint venture provides the operating base to acquire nearby mineral deposits that can benefit from the application of BacTech's technology. The current plan, subject to confirmatory engineering, is to upgrade the current mill and tailings capacity to begin production at 3,000 tons per day using the existing oxide resource for the first year. During the first year of operation, the plant retrofits for the flotation and bioleaching circuits will be completed to allow for production from the higher grade sulphide material.

BacTech is to pay U.S. Gold a US$250,000 non-refundable payment against the purchase price with the signing of the Letter Agreement and BacTech is obligated to pay all costs at the Tonkin Springs mine until Closing. Of the US$1,500,000 balance of the Purchase Price, US$750,000 is to be paid at Closing and US$750,000 is to be paid upon commencement of gold production. If gold production has not commenced within one year of Closing, BacTech will pay 12 consecutive monthly payments of US$62,500. BacTech shall also pay 100% of all funding required by the project up to US$12 million. If additional funding is required, BacTech will advance U.S. Gold's share of any cash calls if requested, with repayment coming from 50% of U.S. Gold's future cash distributions from production. BacTech will recover capital invested by preferential rights to cash flow. BacTech's share of cash flow, before repayment of capital, can be as high as 80% with gold prices less than US$ 360 per ounce.

BacTech's project pipeline continues to grow as it identifies projects that are amenable to its technology. The Company is at advanced stage discussions on 4 projects that include gold and copper-gold deposits.

BacTech is a leader in the development and application of bioleaching technology for use in the extraction of precious and base metals from difficult to process sulphide ores and concentrates. While BacTech has been involved in 3 producing mines, the U.S. Gold joint venture is BacTech's first project with equity ownership in an operating metal producer.