Sur American Gold Corporation: Multiple, Major Structurally Controlled Gold Mineralized Zones Identified at Batoto Gold-Silver-Copper Project, Philippines.

VANCOUVER, British Columbia -- SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is pleased to provide an update on its on-going exploration program at its Batoto gold project, Compostela Valley Province, Philippines.

Based on extensive geological mapping, trenching, sampling, core drilling and geophysical surveying the Company has identified multiple wide structurally (shear) controlled quartz - pyrite - gold vein array systems within their associated quartz - sericite (variety phengite) - pyrite alteration zones. Each of these zones may have considerable strike extents.

Structural control of and within large copper-gold porphyry deposits is the norm and Batoto certainly conforms to this model.

These shear zones are typified by the Clark Structural Zone (CSZ) in East Batoto in which the Clark crosscut was developed. This crosscut returned nearly 2g/t gold over its entire length of 123 metres with consistent gold mineralization throughout.

The Company recently geologically re-mapped the crosscut at a scale of 1:100 and re-channel sampled the central section with 2 meters spaced channel sampling on both walls. This work returned an assay over 24 meters grading 2.66g/t gold, representing a true width of 12m.

The system is open on both walls. Furthermore, due to extensive timbering of the backs of the crosscut, owing to bad ground conditions, the best parts of the system could not be accessed for channel sampling. Therefore, these results almost certainly understate the average grade. Earlier sampling in this zone indicates an average grade of 4.2 g/t Au based from 4m spaced channel samples.

Assaying was undertaken at the JBMM Laboratory using the 30 gram fire assay method.

DRILLING PROGRAM

The Company is also pleased to report that the test drilling component of its initial 12,000m diamond drill program is achieving high core recoveries and improved drilling rates and, importantly, the training of local people in international drilling standards. Procedures have been advanced sufficiently for the planning of a two shift operation and the addition of further drill rigs.

In this regard, the company is pleased to report that Drill Hole No 3 has now commenced and is currently 8m downhole in oxidized - leached quartz - pyrite vein array mineralization with associated intense sericite -pyrite mineralization from the collar.

This hole, drilled at an azimuth of 330 degrees and inclination of -50 degrees is designed to intersect the NE striking, moderately SE dipping, 150m wide, CSZ quartz - pyrite - gold vein array system and its associated quartz - sericite (variety phengite) - pyrite alteration at the optimum angle and inclination for the first time.

Drilling performance data to suggest an average advance of 10m / shift. The hole is planned to a bottom of hole depth of 250m. Therefore, on one shift, the rig should complete the hole by mid February or earlier if a second shift commences prior to that date.

All assaying is being undertaken by GENALYSIS Laboratory, Perth, Western Australia (www.genalysis.com.au), and assays will be available for release three weeks after hole completion.

The following is a brief summary test drill operations to date.

Batoto BDDH - 1 drill hole was drilled from the north-east periphery of the approximately 20 sq km Batoto gold system and was drilled to the SW at a declination of -50 degrees for 152 metres. The hole passed through a late fault system at 145m and thereafter encountered the peripheral hydrothermal alteration and open stockwork quartz - pyrite structural vein and veinlet array with associated fresh quartz - sericite (silica-rich variety phengite) - pyrite alteration of the host hornblende granodiorite of Batoto Target No 1, the Clark Shear Zone (CSZ), from 145m to 152m (end of hole).

The hole was terminated due to the rig having insufficient HQ diameter rods to continue deeper into the system. This has been rectified as sufficient new equipment is now on site.

Assays for this first hole were initially undertaken by the local JBMM laboratory in Monkayo Compostela Valley Province. However in accordance with Canadian National Policy 43-101 and, independent resource estimation guidelines, final reported drilling assays should only be undertaken by an ISO 9002 certified laboratory.

As a result pulverized samples from the first hole will shortly be assayed by Genalysis Laboratories of Perth, Western Australia. Genalysis are one of the largest laboratories in the world. Results should be available within two weeks. These results may, however be announced together with Batoto #2 results to provide a more complete picture of the distribution of gold mineralization within the CSZ.

Batoto BDDH - 2 drillhole was completed at slightly more that 150 metres and was drilled to the SE at a declination of -50 degrees 200 metres to the SW of Batoto #1. The hole has encountered the substantial Clark Shear Zone (CSZ) from the collar to 117m downhole. Within this zone there would appear to four sub - zones of shear defined and controlled vein and veinlet array quartz - pyrite mineralization within strongly oxidized and leached goethitic - quartz - sericite - pyrite alteration. Veins and veinlets fill reidel shears and also occur as folded S and M veinlets.

Batoto BDDH - 3 drill hole, as stated above has commenced and is located approx 150 meters south of Batoto BDDH - 2. This hole is being drilled to the NW also at a declination of -50 degrees with a planned depth of 250 metres through the entire known Clark Shear Zone (CSZ).

Geophysical Survey

The large (approx 120 line km) IP and magnetic survey over the 2500 ha Batoto project has resumed. An interim report from Elliott Geophysics is due by late February. Several large IP and magnetic anomalies have been located to date. The survey will greatly assist the Company in defining further drill targets into 2006 and 2007. The dipole - dipole array Zonge IP survey is proving highly effective at identifying major shear vein array systems similar to the CSZ.

These shears are characterized by intense shearing and quartz - sericite - pyrite alteration giving an excellent vector controlled IP response in the metal factor and chargeability windows. The resistivity picks out areas of strong silicification and the ground magnetic survey is identifying areas of strong secondary hydrothermal magnetite formation at the margins of the major shears.

Exploration Trenching

Extensive exploration trenching and road cut face cleanups using company owned D7 bulldozer and excavator, supplemented by some 60 men equipped with shovels, has exposed 100% of the Clark Shear Zone. This has displayed a mineralized and highly altered shear zone of over 150 m true width with between 4vol% and 20vol% quartz - pyrite veins and veinlets.

This zone has been extensively channel sampled with 4 and 2 m channels. Initial channel sample results indicate gold values between 0.2g/t Au and 1.2 g/t Au with an average of 0.4 to 0.5 g/t Au over the entire shear zone. These low grades contrast with the higher grades indicated in the subjacent Clark Crosscut of 123m of 2.0 g/t Au, and suggest strong near surface oxidation and leaching of the mineralized shear system.

Information from this program is another critical component of the overall active geological program at Batoto which is further helping to refine drill targeting in the initial Clark target of the East Batoto Zone.

Overall Geological Program

All previously known tunnels at the Batoto Gold Prospect have now been remapped according to strict new mapping standards introduced by Sur Vice President-Exploration, Mr. Nigel Maund. This work will greatly assist in the overall understanding of mineralization controls at Batoto which in turn is an essential requirement of future and planned resource calculations.

All geologic data is now being digitized and input into MAPInfo Professional Version 8; and the full version of the mine and exploration software package MICROMINE. This data will enable SUR to integrate data from geologic mapping, surface sampling, drilling, and geophysics to further refine strategic target selection and tactical project follow up programs.

SUR AMERICAN President, Mr. Rennie Blair, added "that at this stage, we are pleased with the overall progress at Batoto and very confident of the potential of the project. All the work completed to date indicates that Batoto has the potential to be a premier and potential world class gold system".

"Clearly, it will take an enormous exploration and drilling effort by the Company over the next two years to fully appreciate the magnitude of the system and overall controls on the gold-silver and copper mineralization" he said.

All mapping and sampling is supervised by Mr. Nigel Maund, BSc(Hons), MSc and MBA. He is also a Member if the Institute of Mining and Metallurgy (UK) and Member of the Society of Economic Geologists and therefore a "qualified person" as defined by Canadian National Policy 43-101.

This news release was prepared by Mr. Rennie Blair Msc, FAusIMM, Company President of Sur American Gold Corporation who is the qualified person as required by National Policy 43-101 and who is the technical person this news release.

Sur American Gold Corporation is a well financed junior exploration Company that is focused on the exploration and development of the Comval and T'Boli projects in Mindanao, Philippines. The Company also has an extensive suite of high potential properties in Colombia and trades on the TSX Venture Exchange (Canada) with trading symbol SUR-V.

On behalf of the board of directors

Alicia Nicholson, Director

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release

Sur American Gold Corporation (TSX VENTURE:SUR)