Staccato releases more Lookout Mountain results (March 27, 2006)

Vancouver — The latest drill results from the Lookout Mountain portion of Staccato Gold Resources’ (CAT-V, STCGF-O) South Eureka project, at the southern end of Nevada’s Battle Mountain-Cortez trend, indicates a widening zone of gold mineralization in favourable rocks.

Hole BH-06-01 cut a composite interval of 75.6 metres (between 87 and 176 metres down-hole) averaging 0.9 gram gold per tonne in oxidized and brecciated jasperoids. The core hole was spotted just 40 metres west-northwest of hole BH-05-03, drilled late last year, which returned a 1-metre, high-grade intercept of 77 grams gold at about 60 metres depth, followed by a deeper, 24-metre intercept of 7.4 grams gold.

The second hole of this year’s program, BH-06-02, intersected 11.3 metres (at 133 metres below surface) averaging 9.7 grams gold, and was collared between previous holes BH-05-01 and BH-05-02.

The three holes drilled in late 2005 tested zones of oxide and sulphide mineralization beneath and around the past-producing Lookout pit, and were parallel to, and east of, the northwest-southeast-trending Ratto Ridge fault.

Results indicate stratabound mineralization related to collapse breccia structures in the favourable Lower Plate rocks. Gold-enriched zones contain elevated amounts of arsenic sulphides (orpiment and realgar), pyrite and carbon. The Carlin-style environment exhibits anomalous arsenic, antimony, mercury, thallium and zinc geochemistry.

Staccato is continuing to test prospective host stratigraphy nearer to the Ratto Ridge fault and other potential feeder structures.

An early 2005 resource estimate on the Lookout Mountain area, conducted by Mine Development Associates, reviewed almost 12 million tonnes of measured and indicated resources grading 0.7 gram gold (about 270,000 contained ounces gold). An additional 8.4 million tonnes averaging 0.65 gram gold (about 177,000 contained ounces) was calculated as inferred. The study incorporates data from more than 61,000 metres of previous drilling in over 400 holes.

The company retracted from recent highs upon the news, trading down 13% to close at $1.07 per share on volume of more than 3.5 million. Staccato shares traded in a 52-week range of 6-$1.51 with about 41.7 million shares outstanding.