Mining Venture For Tonopah Divide Project 

LA JOLLA, CA - Tonogold Resources, Inc. has received notice from Centerra (U.S.), Inc. that it is exercising its option to form a mining venture for the Tonopah Divide project.

Centerra (U.S.) a subsidiary of Centerra Gold Inc., is managing the exploration program at Tonopah Divide as part of an Exploration and Option Agreement with Tonogold Resources, Inc. Centerra has given notice that it has satisfied the $2.7 million earn-in requirement of the Exploration and Option Agreement and is exercising its right to form a mining venture with initial participating interests of 60% for Centerra and 40% for Tonogold. The closing date for the transaction is July 16, 2010. Centerra has elected not to exercise its second option to acquire an additional 15% participating interest for $5 million. Also, Tonogold has elected not to participate in the 2010 program and its participating interest will decrease to approximately 32% for the 2011 budget. The proposed budget for 2010 is $1.04 million and includes a drill program totaling approximately 20,000 feet in 20 holes which is scheduled to begin in June. The primary targets for the drilling include North Monte Cristo, Victory Divide, the Gold Zone, and Divide East. In the 1st quarter, Centerra continued with data compilation, drill chip logging, and land negotiations. The company's address is 5771 La Jolla Blvd., Ste. 100, La Jolla, CA 92037, 858-456-1273, fax: 858-456-2540, email: [email protected].