Linux Gold Corp. Acquires Option on Gold/Silver Property near Fairbanks, Alaska for US$10.3 Million.

VANCOUVER, British Columbia -- Linux Gold Corp. (OTCBB:LNXGF) announced today that the Company has acquired an option to purchase a 100% interest in 26 mining claims, close to the historic Ester Dome mining camp near Fairbanks, Alaska for US$10.3 million, to be paid in cash and shares, in stages, over a two-year period. Ester Dome is reported to be the largest placer gold discovery in the Fairbanks Mining Division. The owner of the 26 claims considers the land was and is the primary source for the majority of Placer Gold that has been mined from Ester Creek and its drainage over many years.

It was announced on September 9, 2007, a major gold/silver discovery was located on the claims, with a potential strike length of 6,500', width of 100' and minimum depth of 100' of high grade gold and silver values based on the sampling and trenching program completed this year. The area has been re-sampled and results are pending.

Drilling is planned on the mineralized zone this year, to confirm gold and silver values on the property.

ABOUT THE ESTER MINING DISTRICT

Gold was first discovered in Alaska on Pedro Dome with Ester Dome being the second discovery. Since the discovery, the Ester Creek drainage has been the number one producer of gold, second only to a creek in the Brooks Range of Alaska above the Arctic Circle. The Ester Mining District has yielded more gold than the rest of Alaska combined, according to the University of Alaska Mining Department.

ABOUT LINUX GOLD CORP:

In March of 2005, Linux Gold Corp. staked 148 State of Alaska 160-acre MTRSC mining claims at several locations near Granite Mountain on the eastern Seward Peninsula of Alaska and has increased the claim position to 284 claims or 68 square-miles. A drilling program on the Granite Mountain Property has been completed, testing four separate mineralized zones, in September 2006.

Linux Gold Corp. also owns a 50% interest in 30 mineral claims known as the Fish Creek Prospect, located in the Fairbanks Mining Division in Alaska. Linux Gold Corp. optioned to Teryl Resources Corp. (TRC-V) a 50% interest in the Fish Creek claims by expending US$500,000 over three years. Linux Gold Corp. retains a 5% net smelter return or may convert into a 25% working interest. The Kinross Fort Knox mill is within 6 miles from the Fish Creek claims.

For more information please visit www.linuxgoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"John Robertson"

John Robertson

President

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