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VANGOLD RESOURCES LTD. TSX-V:VAN

NEWS RELEASE

UPDATE OF GEOPYHSICS AND DIAMOND DRILLING KAFUNJO NICKEL PROJECT, UGANDA

July 10, 2008 - Vancouver, BC - Vangold Resources Ltd. (“Vangold”) announces  that Locke B. Goldsmith, P.Eng., P.Geo, and David Kyagulanyi, Consulting Geologist, have prepared the following report, dated July 5, 2008 entitled Kafunjo Nickel Prospect, Uganda, Update of Geophysics and Diamond Drilling. The location and regional geological setting of Kafunjo in relation to Kabanga is shown in Figs 1a and 1b below (Evans et al, 2000). Discussion of Kabanga geology and mineralization is followed by the interpreted Kafunjo geological model and similarities to Kabanga.

Kabanga Reference is made to drawings (Evans et al, 2000) of the Kabanga nickel deposits in Tanzania. The geological setting of Kafunjo is in the same series of metasediments on the northeasterly arc of the rim of the Proterozoic Karagwe-Ankolean basin as are present to the south at Kabanga. Figure 1b (above) shows the location of Kafunjo (penciled) in relation to Kabanga. The plan view of Kabanga (Evans et al, Fig 3 below) shows a folded east limb of an antiform overturned to the east, of a stratigraphic sequence of metasediments which enclose an approximately concordant differentiated ultramafic intrusive and accompanying nickel sulphides (massive, net-textured, and disseminations), The oldest proximal rock (Rubona Quartzite) is to the west in the drawing. The sedimentary units had been near horizontal at the time of emplacement of the flat-lying concordant ultramafic intrusives. The locations of the strong magnetic lows appear to mark the stratigraphic base of the differentiated ultramafic. The magnetism is caused by the formation of abundant magnetite grains within the ultramafic rocks during the pervasive partial alteration of olivine grains to serpentinite (Evans et al, p.657). Gravity data are not available for the Kabanga deposits.

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Cross-sections (Evans et al, Figs 4 & 5 below) if rotated counterclockwise until the Rubona Quartzite is horizontal, would restore the sedimentary rocks to pre-folded attitudes. Thus the succession upwards is quartzite, mica schist (mudstone-phyllite), SAG schist marker horizon, ultramafic intrusive with associated nickel sulphides, and mica schist (mudstone-siltstone). It is noted that with the exception of an outcrop of several square metres in a stream bed, the portrayal of mafic and ultramafic rocks that are shown to extend to surface is interpreted from drill holes. The SAG schist marker horizon is present at Kafunjo. The vertical depth to the top of the massive sulphide mineralization is approximately 300m.

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Kafunjo Exploration of the Kafunjo magnetic and gravity anomaly by Vangold Resources Ltd. began in 1994 and 1995 with ground magnetic, electromagnetic surveys, and diamond drilling. The peak high of a gravity survey that had been completed previously was shown to be coincident with a very strong magnetic low and an electromagnetic conductor, but the methodology of the gravity survey was flawed. Diamond drilling above the centre of the anomalies was completed to a maximum depth of approximately 350 m which was the capability of the equipment. The magnetic and gravity anomalies were not explained by drilling. The electromagnetic conductor was explained by the presence of thin-bedded sedimentary pyrrhotite. Reinterpretations of the magnetic data indicated that the top of a magnetized body is located 600 m or more below

surface.

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In April 2008 a magnetic survey of limited areal extent was conducted over the central sector of the previous grid and reconfirmed the location of the magnetic low. An interpretation of the magnetic data by a senior geophysicist from a Uganda Government Department indicated that the causative body was located to the north-northeast of the peak low. Diamond drill hole K-01-08 was sited to test this interpretation as well as the previous interpretation model which shows the top of a body to be below 600 m from surface. The hole was started May 25th, drilled at Az 035°, -85°, to 943 m where it entered a zone of caving; rods stuck, and the hole ended on June 30th. Siltstone-mudstone (mica schist) and carbonaceous black quartzite- slaty iron formation in cores did not explain the strong magnetic low. A 0.4m section from 786.4 to 786.8m contained massive pyrrhotite in sedimentary iron formation with very high magnetic susceptibility which had not been seen in the previous drill holes. Various delays prevented the initiation of a gravity survey until the period of June 16th -22nd. Preliminary interpretations were received on June 28th. A significant gravity anomaly peak of 2 milligals above background within the area of exploration activities has been confirmed. The peak of the gravity high is now shown to be approximately 260 m southwest of the peak of the magnetic low. The north-northeastern segment of each profile shows an abrupt and steep decline to a gravity low, suggesting that the high-density body ends in this direction and extends on a steep dip to the south-southwest. These breaks in the gravity profiles correspond to the peaks of the magnetic lows. Gravity profiles and a contour map are presumed to approximate the configuration and lateral extent of the ultramafics. In plan views the contours of the magnetic low are offset to the north-northeast of the gravity high contours. Contour outlines of the gravity and magnetic anomalies have the same shape with lobes extending both north-northeasterly and north- northwesterly from the central high or low. The geophysical signatures appear to reflect similarities to Kabanga-style ultramafic geometry. Diamond drill hole K-02-08, started on July 2nd, is currently drilling at Az 355°, -70°, oriented to cross the zone of the gravity high and the centre of the magnetic low, based on a Kabanga-style model. Mica schist is present in -02 beginning at approximately 68 m and continuing to 164 m at the end of day shift July 6. The crossection shown below is Fig 5a inverted (ie. rotated an additional 90° clockwise from a horizontal reconstruction) to show the schematic interpretation of Kafunjo geology and geophysics. This depicts the steeply-dipping west limb of an antiform. Overturning shown in the upper portion may not be present at Kafunjo. Because ultramafics have not been seen near surface at Kafunjo, the depth to the body that causes the magnetic and gravity anomalies, and by analogy possible nickel sulphide mineralization, may be farther below surface than at Kabanga. A reversal of the North arrow in Fig 5b to point north-northwesterly would orient the plan view to show a schematic interpretation at Kafunjo.

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Area of 1995 drilling SAG 02 GH ML 01

Southwest Northeast Fig 5a, Evans et al, inverted, to show the interpreted schematic model for Kafunjo. Legend as in previous figures. (SAG= staurolite-andalusite-garnet schist marker horizon as seen at Kafunjo in DDH K-95-03; GH = Peak of gravity high; ML = Peak of magnetic low; 01 = Collar location, DDH K-01-08; 02 = Collar location, DDH K-02-08.) Depending upon the results of K-02-08 a third drill hole is planned to be collared approximately 250 m northwesterly of -02, oriented north-northeasterly to cross the central gravity anomaly and trend along the axis of a lobe of the gravity high and magnetic low. A revised total of 3000m is planned for this phase of diamond drilling. Similarities between Kafunjo and Kabanga include the sedimentary sequence and location on the rim of the Proterozoic basin, the SAG schist marker horizon, the schistosity that is developed nearly parallel to the sedimentary bedding, the position on a regional magnetic anomaly, and the magnetic low. The target at Kafunjo appears to be analogous to the geological setting at Kabanga Drilling should continue until the cause of the anomalies is explained.

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All technical information in this press release has been reviewed by Locke B. Goldsmith, P.Eng., P.Geo,, a qualified person as defined by National Instrument 43-101. To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca. To be included on the Vangold shareholder update list, please send in your email address to Rob Grace at grace@vangold.ca or call him at 1-866-684-1974. He will send out regular updates and news releases to everyone who requests to be on the list. On Behalf of the Board of VANGOLD RESOURCES LTD. “Dal Brynelsen” Dal Brynelsen, President and CEO

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