Liberty Gold Corp. Acquires Arizona-Based Properties with Estimated Gold Equivalent Resources of 3.01 Million Ounces

PHOENIX, July 25, 2011 /PRNewswire/ -- Liberty Gold Corp. (OTCBB: LBGO.OB; "Liberty Gold" and/or "the Company") is pleased to announce that on July 18, 2011, the Company acquired a 100% interest in the 794-acre Domestic Portfolio mining operations claim block. The holdings are located in what may be the most mineralized area of Arizona, situated in the Cerbat Mountain range on Stockton Hill, roughly 75 miles southeast of Las Vegas and 15 miles northwest of Kingman in northwestern Arizona's Wallapai Mining District in Mojave County.

The Domestic Portfolio consists of 40 individual projects ranging in size from 16 to 20 acres each: 4 patented mining claims, 11 Federal mining claims (unpatented), and 25 pure exploration prospects. According to a January 18, 2010 report on eight of the Domestic Portfolio's mining claims alone,[1] estimated resources total ~3.01 million gold equivalent ounces.[2] Based on a subsequent report's (Oct. 9, 2010) estimate of total resources for blocked out, assayed and geologically inferred ore (including the discovery of indium, gallium and rare earth metals), the potential valuation for the 8 mining claims is $6.51 billion.[3]

The October 9, 2010 report also included preliminary minimum resource estimates for 25 of the Domestic Portfolio's other claims, representing an additional ~6.70 million gold equivalent ounces.[4] When the estimated resources of the 33 claims are taken together, the potential market valuation is roughly $20.01 billion.[3] Of the 7 remaining claims (2 patented & 5 Federal), preliminary exploration related to the 5 Federal claims has shown encouraging results ranging up to 0.71 opt gold, 19.98 opt silver and 2.92% copper.

Arizona has a rich tradition of gold production, and as of 2008 represented cumulative gold production of over 16 million ounces.[5] Of particular interest to Liberty Gold's Domestic Portfolio is a northwest-trending belt of metallic mineralization that stretches across and up Arizona toward the Wallapai Mining District. According to the Arizona Geological Survey, the western end of the belt is dominated by gold deposits, which are mostly related to volcanic activity that occurred between 25 and 15 million years ago.[6]

"We're excited to have acquired interest in a domestic gold project with this level of gold equivalent resource potential while being in the mining friendly state of Arizona," said Lynn Harrison, Liberty Gold's President and CEO. "With the Domestic Portfolio properties in our stable of holdings, Liberty Gold has gained yet another opportunity to expand the value of the Company's asset base through our ongoing exploration efforts."

Liberty Gold has an approved Federal Mining Notice for further exploration and development of the properties. Toward that end, the January 2010 report recommends the drilling of 3 to 4 exploration holes to confirm the reserve estimates. Planned development includes the construction of a production mill on the privately owned land, thereby making it exempt from BLM Mining Notices and Federal Mining Plans. Physical access to the claims for further exploration and development is available via the old county mining road, which extends through the properties and on to the old town of Mineral Park.[1]

More details on the Company's Domestic Portfolio exploration program will be released as they become available.

DOMESTIC PORTFOLIO DETAILS

The eight mining claims discussed in the January 2010 report (2 patented & 6 unpatented claims) represent 3 veins that contain the rare and valuable formation known as Free Wire Gold. The Gold recovers at 99% using water and gravity, milled to minus 20 mesh. At depth, gold averages 0.75 oz/t and silver averages 6.5 oz/t. Total ore weight represents 4.54 million tons when calculated to a depth of 1,200 feet.[1] When the estimated resources of the 33 claims are taken together, the October 2010 report places projected mine life at 60+ years by mining to 400 feet at 200 tons per day.[3]

Notable past production resulted from three of the claims being mined until 1952 while the Bluebell Adit was commercially mined up to 1977 with outstanding success. Both the nearby Tennessee and Golconda mines, which are part of this 3 vein system, were mined to 1,400 feet and 1,600 feet respectively while carrying ore that was better at depth than on the surface.[1]

FOR MORE INFORMATION

To learn more about the Domestic Portfolio gold project, and to read more about the Company and its latest news, visit Liberty Gold's website at http://www.libertygoldcorp.com.

ABOUT LIBERTY GOLD CORP.

Liberty Gold Corp. is a publicly traded (OTCBB: LBGO.OB) gold and precious metals exploration company focused on emerging as an industry leader while effectively growing America's reserves of gold and silver. Headquartered in Phoenix, Arizona, Liberty Gold is committed to the responsible exploration and production of the nation's rich precious metals resources, as well as the proven resources of US-friendly nations. The Company's stable of major gold and silver projects is well established, and thanks to an active approach to property acquisitions, Liberty Gold's portfolio of significant assets continues to grow. For more information on the Company and its activities, visit Liberty Gold's website at http://www.libertygoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

Liberty Gold Corp.
Lynn Harrison, President and CEO

2415 East Camelback Road
Suite 700
Phoenix, AZ
85016

Investor Relations:
Toll Free: 1-800-961-5388
E-mail: [email protected]
OTCBB: LBGO.OB

This press release includes certain statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based on Liberty Gold Corp.'s current expectations and projections about future events, which are based on currently available information. The forward-looking statements in this press release may also include statements relating to Liberty Gold Corp.'s anticipated financial performance, new developments, business prospects, strategies and similar matters. Liberty Gold Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Sources:

1 Applied Resource Science (ARS) reserves & calculations report, Jan. 28, 2010

2 Gold equivalent = Au oz + (Ag oz x Ag price/Au price) + (Zn lb x Zn price/Au price) using 1,271,096 oz gold @ $1565.70/oz, 31,323,400 oz silver @ $47.94/oz and 1,198,462,000 lbs zinc @ $1.0160/lb (closing market prices, Apr. 29, 2011)

3 Valuation = resource estimates from Applied Resource Science (ARS) reserves & calculations report, Oct. 9, 2010 x Apr. 29, 2011 market prices

4 Gold equivalent using 2,900,000 oz gold @ $1565.70/oz, 61,000,000 oz silver @ $47.94/oz and 2,975,000,000 lbs zinc @ $1.0160/lb (closing market prices, Apr. 29, 2010)

5 Arizona's Metallic Resources, 2008. Arizona Department of Mines & Mineral Resources

6 Arizona Geological Survey website, July 13, 2010

SOURCE Liberty Gold Corp.