Liberty Gold Corp. Acquires Mexico-based Property With Estimated Gold Equivalent Resource of 4.21 Million Ounces

PHOENIX, July 20, 2011 /PRNewswire/ -- Liberty Gold Corp. (OTCBB: LBGO.OB; "Liberty Gold" and/or "the Company") is pleased to announce that on July 13, 2011, the Company acquired a 75% interest in the 218-hectare (538-acre) Monte del Favor gold/silver property, consisting of three mineral concessions in the historic Hostotipaquillo mining district in Jalisco state, Mexico.

Based on channel sampling and mapping of adits in the property's El Favor and Solomon Hill mines, a senior geologist's 1999 estimate (17 million tonnes of ore at 0.027 oz/t gold and 7.21 oz/t silver)[1] indicates the property represents gold equivalent resources of ~4.21 million ounces[2] for a potential valuation of $6.59 billion.[3] Nearby mining exploration concessions with superior mineral potential are also available for exploration.[4]

The Monte del Favor property is located roughly 60 miles northwest of Guadalajara, the capital of Jalisco state. The district is accessed by four-lane highway and then two-lane paved road. A full range of amenities is available one hour from the property in the town of Magdelane.[1]

In 2003, Godfrey Walton, P. Geo prepared an independent technical report on the property, indicating that the grades used on an average basis for the 1999 estimate were similar to 24 on-site samples he took at the time. While the 1999 estimate is not NI 43-101 compliant, the Walton report indicated the estimate would be classed as an inferred resource until further exploration work has been completed. At that time, a new resource estimate could be completed that would be fully compliant with 43-101, and some of the resource may be classed in a higher resource category.

The Walton report concluded the property has merit and requires further work to evaluate its mineralization potential. A low cost, focused exploration program was recommended, including geological mapping, surveying, further sampling and underground drilling on the current underground access. The program would also include surface exploration on other areas of the property to possibly locate new target zones, and surface drilling to test the resources as outlined and test new targets.[1]

"Monte del Favor is an ideal second asset for our growing portfolio of exploration properties," commented Lynn Harrison, Liberty Gold's President and CEO. "Particularly because it represents high potential for precious metal resources while allowing for a low cost follow-up exploration program to firm up the asset's overall value."

More details on the Company's Monte del Favor Property exploration program will be released as they become available.

EXPLORATION POTENTIAL & UPSIDE

Subsequent to mining activities near the turn of the century, the Monte del Favor property has been reviewed in a non-systematic manner by a number of other parties including Kennecott Minerals Co. (Bear Creek Mining) and Industrias Penoles,[1] Latin America's leading producer of refined gold and the world's top producer of refined silver.

In light of the available exploration results, the property appears to have significant "Blue Sky" potential to increase the size of the resource. First, the 1999 estimate does not include mineralization in the trend traced by three mines located to the south. Second, reconnaissance in 1981 by Kennecott geologists revealed surface outcrops of vein material averaging 1 to 2 meters thick over distances of 1,500 meters east and west of the property's El Favor mine, suggesting a larger resource than is known at present.[4] The Monte del Favor project also represents the probability of using surface and bulk mining methods to exploit the property's ore, while the Company has the ability to utilize additional lands adjacent to the property for processing and other mining-related facilities.[4]

FOR MORE INFORMATION

To learn more about the Monte del Favor Property gold/silver 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 Technical Report, Godfrey Walton, P. Geo, June 9, 2003

2 Gold equivalent = Au oz + (Ag oz x Ag price/Au price) using 459,000 oz gold @ $1565.70/oz and 122.6 million oz silver @ $47.94/oz (closing market prices, Apr. 29, 2011)

3 Valuation = resource estimates from Technical Report, Godfrey Walton, P. Geo, June 9, 2003 x Apr. 29, 2011 market prices

4 Property Overview, CB Richard Ellis (International Mining & Metals), Dec. 2002

SOURCE Liberty Gold Corp.