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TAGISH LAKE GOLD IN BRIEF

Yukon Gold and Silver: Production and Potential

Tagish Lake Gold Corp. August 6, 2009
Symbol/Exchange	TLG/TSX-V
Current Share Price	$0.015
Shares Outstanding	129.8 million
Fully Diluted	148.0 million
Market Capitalization	$2.0 million
52-week Hi/Lo Range	$0.05 / $0.005

THE COMPANY

Tagish Lake Gold Corp. (TLG: TSX-V) is a Canadian company that explores for and develops high-grade gold-silver mineral deposits in the Yukon Territory of Canada. The Company is currently focused on its wholly-owned Skukum Mineral District, located one hour by road southwest of Whitehorse. The Skukum Mineral District holds three known gold-silver deposits and several identified exploration targets.

Tagish Lake Gold is listed for trading under the symbol TLG on the TSX Venture Exchange. Approximately 11 per cent of the outstanding shares are controlled by insiders, and 10 per cent are institutionally held.

Extension of the underground workings on the zones identified in drilling at Skukum Creek, will be followed by another diamond drill program.

CORPORATE STRATEGY

Tagish Lake Gold’s objective is to develop and profitably mine the high-grade gold-silver deposits, using a state-of-the-art, environmentally sound approach. The first step in this process (to consolidate the district) was achieved in the 2000 corporate restructuring. Current and future efforts are focused on moving to production by adding additional mineral resource through continued deposit definition, converting resources to reserves, completing  process and feasibility studies as well as completing environmental assessment reports and permitting.

Skukum Mineral District

Skukum is located approximately 80 km, by road, southwest of Whitehorse. The Yukon Government maintains the road system to within 20 km of the property. The property consists of 982 mining claims covering 178 km². To date, three mineral deposits have been identified. They are: Skukum Creek (gold-silver); Mt. Skukum (gold); and Goddell Gully (gold). Several other exploration targets have also been identified. Mt. Skukum Mine operated between 1986 and 1988, producing 77,796 ounces of gold. The 270 t/d mill from that operation is owned by Tagish Lake Gold Corp., and can be upgraded to process ores from all three deposits.

Skukum Creek Deposit consists of six identified mineralized zones structurally controlled within steeply-dipping shear zones, hosted in mid-cretaceous granodiorites. These zones, consisting of quartz-sulfite breccia and quartz-carbonate veins, vary in thickness from a few centimeters to 20 metres. The two principal zones are Rainbow (strike length of 265 metres and extending 360 metres down-dip from the surface; and Kuhn (strike length of 200 metres and extending 350 metres down-dip from surface). Both zones are open along strike and at depth.

Goddell Gully Deposit located five km to the east of the Mt. Skukum mill, is a fault-controlled gold-antimony deposit, also hosted in the mid-cretaceous granodiorites. It consists of multiple sub-parallel veins within a 50-metre-wide zone of intense shearing, brecciation and alteration. The main gold-bearing zone (P.D. Zone), located 400 metres below surface, has been explored over a 400-metre strike length and 170 metres of vertical extent. It remains open in all directions.

Mt. Skukum Deposit five km. northwest of Skukum Creek, is hosted in pyroclastic and prophyritic andesitic rocks in the Mt. Skukum Volcanic Caldera Complex. Gold mineralization at Mt. Skukum is associated with epithermal quartz-carbonate veining Three zones have been identified. The Main Cirque Zone ranged from one to 40 metres in width and was mined between 1986 and 1988. The Lake Zone contains inferred gold resources and consists of three sub-parallel steeply-dipping veins. The Brandy Zone occurs as a narrow, high-grade stock-work of veins.

Exploration Potential: Literally hundreds of gold showings have been identified on the property and several areas have excellent potential for the discovery of additional deposits. Two areas with high potential are the Ridge Zone, the western extension of the Kuhn Zone, with a drill intercept of 8.44 g/t gold and 260 g/t silver over 11.67 metres; and the Ridge Zone, with several drill intercepts, including 10.59 g/t gold and 89.4 g/t silver, over 10.59 metres. The zones are open and will be defined with the current drilling program.

Resource Inventory: Resource estimates for the Skukum Creek and Goddell Gully deposits were calculated by MineTech in 2003, and updated in August 2007. Presently there is a total of 482,000 in situ ounces of gold and 6,400,000 in situ ounces of silver.

Table 1: Resource Inventory: Skukum Property

PRE-FEASIBILITY STUDY

The Pre-Feasibility Study, updated in October 2007, was based on the updated resource estimate using US$650 gold, US$10.00 silver and C$0.90 exchange rate, indicated a net cash flow of C $27 million and a pre-tax IRR of 19.3%. The study was based on a through-put of 270,000 tonnes per year, at a grade of 5.78g/t gold, and 159 g/t silver, and estimated average operating costs of C $100 per tonne. An external dilution rate of 20 per cent at zero grade was used. The projected production was 43,000 troy ounces of gold and 1,100,000 troy ounces of silver for every full year of operation. A combination of sub-level retreat and shrinkage-stopping mining methods were modeled. Metal recoveries were estimated at 90 per cent for gold and 77 per cent for silver.

MANAGEMENT

Robert C. Bryce, Ing. B.Sc., MBA, FCIMM

Chairman and Director

Mr. Bryce has 30 years’ mining management and administration experience. He is the founding Chairman of Abitex Resources, Inc. and is a director of several mining companies. He is a former Vice-President of Aur Resources, Inc. and General Manager of Les Mines Selbaie.

Robert J. Rodger, P. Eng. – Interim C.E.O. and Director

Mr. Rodger has over 30 years’ diversified experience in mining, including project manager, project engineer and operations manager. He has an extensive background in project management, project evaluation, monitoring and feasibility studies.

Robert Chafee – Director

Mr. Chafee has been involved in the mining industry since 1957, originally in Elliot Lake, Manitouwadge and Sudbury, as well as in Northwestern Quebec, Manitoba, British Columbia and the Yukon. Currently he is Chairman and Director of several trucking and contracting companies.

Charles de Chezelles – Director

Mr. de Chezelles is an acknowledged financial industry expert. He is currently Managing Director of Omega Trust Company Ltd., and sits on the Board of several financial companies and trusts. Past positions include: Executive Director, Credit Suisse-First Boston (CFSB); Director, First Boston Europe; Vice-President, The First Boston Corporation and Investment Analyst, Stralem & Company.

Denis Lampron, CA, MBA - Chief Financial Officer

Mr. Lampron has over 20 years’ experience in manufacturing, natural resources and metallurgy. He was CFO of a private oil &  gas producer, and a mineral exploration company. He has overall responsibility for financial management, directing the financial planning and control, tax, treasury, risk management and budgeting.