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NEWS NEWS - 'More Robust Than Ever'

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SearchGold's Mandala Diamonds 'More Robust Than Ever' Says Expert Technical Overview MONTREAL, QUEBEC--(CCNMatthews - Oct. 7, 2004) - SearchGold Resources Inc. is pleased to report the conclusions of Mr. Peter W.A. Walker's "PRELIMINARY FEASIBILITY REPORT OF THE MANDALA AND OURIA RIVER ALLUVIAL DIAMOND PROJECT" on its Mandala project in Guinea, West Africa. MANDALA PRELIMINARY FEASIBILITY REPORT'S HIGHLIGHTS: - 24,542 diamonds weighing 6,571.10 carats were recovered during SEARCHGOLD's bulk sampling program. - A total of 17,921.87 m3 of gravel was processed and a mean grade of 0.37 cts/m3 was confirmed. - A mean value of 53.42 US$ per carat was confirmed for Mandala's diamonds. - An updated calculation confirmed a diamond resource of 535,162 CARATS OF DIAMONDS LARGER THAN 1.5 MM in a 1,156,000 m2 area where a 606,000 m2 portion, representing 204,962 carats, is upgraded to the Probable Reserve status. - The new resource estimate combined with the Operating and Capital expense analysis concluded to a profitable mining operation at a production rate of 60,000 cts / year for a mine life of 8 years. - A Net Cash Flow estimate of US$ 11,500,000 on gross revenues of US$28,600,000 over 8 years. - An Internal Rate of Return (IRR) of 69% using a 25% discount rate. Mr. Walker's assignment consisted of the following: - To review all exploration and bulk sampling data applicable to the Mandala Permit. - To visit the site and assess the available plant, machinery and equipment, as well as the general infrastructure. - To confirm the validity of the Mandala and Ouria Permits. - To assist in giving an estimate of Capital and Operating expenses for a profitable mining operation on the Mandala Permit. - To recommend an exploration program for the economic assessment of the Ouria Permit. SearchGold's bulk sampling program started in October 2002 on Mandala II and III flats, and aimed to show the accuracy of the historical 1989 Placer Analysis resource estimate, to establish rough costs of diamond extraction and treatment, and finally, to gather a sufficient parcel of diamonds to obtain a statistically valid average value for diamonds contained in the Mandala Deposit. SUMMARY OF RESULTS OF THE BULK SAMPLING PROGRAM: - In the Mandala II bulk sample, 4,037.87 m3 of gravel was extracted and treated, producing 4,333 diamonds, weighing 937 carats. The diamond mean size was 0.22 carats per diamond and the mean grade was established at 0.23 carat/m3. - In the Mandala III bulk sample, 13,884 m3 of gravel was extracted and treated for a total recovery of 20,209 diamonds weighing 5,634.10 carats. The diamond mean size was 0.28 carats per diamond, and the mean grade was established at 0.41 carat/m3. - The average value of the diamonds recovered is established at US$53.42 per carat. - A revised estimate of the resource at Mandala following the bulk sampling indicates some 535,162 carats of diamonds contained in 1,157,369 m3 of gravel. A 606,000 m2 portion of the revised measured resource estimate is upgraded to Probable Reserve status, containing 204,962 carats, and the remaining 550,000 m2 of deposit contains an estimated 320,200 carats which remains in the measured resource category. - Preliminary Capital and Operating expense estimates for the mining and processing of this revised resource shows that the property can be mined profitably over a mine life of 8 years, based on a production rate of 5,000 carats per month. At that production rate, the gross revenue over 8 years is estimated at US$ 28.6 million and the Net Cash Flow for that same period is estimated at US$ 11.5 Million. - The Capital Cost estimate to expand the existing mining fleet and plant in order to achieve a production of 60,000 carats per year is of US$ 1,566,472. Mr. Maurice Giroux, President and CEO of SearchGold, stated, "This is an important step toward reaching the company's objectives, to develop the Mandala Project into a profitable mining operation. We have always been aware of the potential of the project. Aside from its tangible value, the project has tremendous upside potential namely in the following: - The Mandala and N'Keleyani Rivers represent over 6 km of river bed still untouched within the permit area. - The steady increase of rough diamond prices. - The presence of some considerable potential diamond resources within the OURIA Permit area. - The presence of additional diamond resources out of the Mandala / N'Keleyani tributaries. - The possible recovery of large and high-value diamonds. We will continue our efforts in order to deliver a profitable diamond mine to our shareholders shortly, and the company will aggressively continue its acquisition strategy of high-potential diamond grounds". SearchGold Resources is a Canadian mining exploration company whose primary mission is to target, explore and develop diamond and gold deposits in Africa and in Canada. SearchGold's project strategy maximizes its experience and resources, and supports the company's commitment to strengthen shareholder value. Find out more about SearchGold Resources by visiting www.searchgold.ca The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Shares issued: 50,256,737 -30- FOR FURTHER INFORMATION PLEASE CONTACT: SearchGold Resources Inc. Maurice Giroux President [phone] [phone] (FAX) [e-mail] www.searchgold.ca