Golden Tag JV boosts inferred resources at San Diego

Golden Tag Resources Ltd (C:GOG)
Shares Issued 39,770,958
Last Close 12/9/2008 $0.165
Wednesday December 10 2008 - News Release

Mr. Marc Carrier reports

GOLDEN TAG UPDATES RESOURCE ESTIMATE-CONFIRMS DISCOVERY OF NEW MAJOR SILVER-LEAD-ZINC DEPOSIT AT SAN DIEGO PROJECT IN DURANGO STATE, MEXICO

Golden Tag Resources Ltd. has provided results of a National Instrument 43-101-compliant resource estimate on its 50-per-cent-owned San Diego joint venture project in Durango state, Mexico, received from joint venture partner and project manager ECU Silver Mining Inc., which owns the remaining 50-per-cent interest. Results from 18 new diamond drill holes, along with extensions of 2 previous holes, completed in very successful Phase 3 and 4 drilling programs in 2007-2008, have contributed to a very significant growth in mineral resources. Results confirm that the San Diego Property hosts a large, new Silver-Lead-Zinc Deposit on trend with the Santa Juana Mine (ECU Silver) and the Santa Maria Mine (Penoles) mines in the Velardena District which have seen metal production throughout the last century. All available results from Phase 3 and 4 drilling at San Diego have been incorporated into the new resource evaluation. The Phase 4 drilling program remains currently underway and only those results available at the time of the completion of the Resource Estimate in late November could be included. Total mineral resources on the property have increased almost five fold from previous estimates (see press release December 12, 2007) with mineral resources now standing at:

- INDICATED RESOURCES:

370,852 TONNES GRADING 245 Ag g/t, 1.80 % Pb, 1.33 % Zn and 0.339 Au g/t

- INFERRED RESOURCES;

21,638,614 TONNES GRADING 110 Ag g/t, 1.84 % Pb, 2.21 % Zn and 0.134 Au g/t

San Diego JV partners Golden Tag and ECU Silver each own 50% of the estimated mineral resources. The Resource Estimate (Table 1) was completed by operator ECU Silver and independently audited and approved by William J. Lewis, P.Geo, MICON International Limited, a qualified person as defined under NI 43-101 guidelines. A report of the Resource Estimate will be filed on SEDAR within 45 days.

The resources represent:

- INDICATED RESOURCE OF 4.29 MILLION OUNCES OF SILVER EQUIVALENT

- INFERRED RESOURCE OF 218.1 MILLION OUNCES OF SILVER EQUIVALENT

The Resource Estimate is constrained to areas on the property where drilling has been undertaken during four phases of recent exploration. It does not include several areas within the San Diego Property where potential exists to further expand the mineral resource. Many of the veins and wider stringer zones remain open at depth. Similarity with the geology of the nearby Santa Juana and Santa Maria Mines has led to an estimate of the mineral potential within the property. The additional Mineral Potential on the property, as reviewed by Micon is:

MINERAL POTENTIAL OF 173.5 to 389.5 MILLION OUNCES OF SILVER EQUIVALENT

The mineral potential of the San Diego property is defined beyond the mineral resources currently outlined and has not been included in the mineral resource estimate.

Silver equivalent ounces are calculated from gold, lead and zinc using conversion factors of 78.51 g/t Ag per 1 g/t Au, 49.90 g/t Ag per 1% Pb and 46.47 g/t Ag per 1% Zn. Conversion factors take into account processing metal recovery factors, as well as, smelter returns from sales of concentrates to MK Metals Trading S.A. de C.V., a division of Nexxtrade ("MK Metals"), with whom ECU recently entered into an agreement for the purchase of lead and zinc concentrates from the operations at Velardena. Recovery factors of 64.6 % for silver, 73.12 % for lead, 47.88 % for Zn and 43.63 % for Au were used for sulphide material with 78% for gold and 55% for silver for the oxides. Commodity prices of US$775/oz for gold, US$14/oz for silver, US$0.90/lb for lead and US$1.28/lb for zinc used in the estimate are based on the 3-year trailing averages for each metal plus 6% for gold and 3% for silver to allow for an upside in the resources.

Five principal mineralized structures, the Montanez, Cantarranas, San Jose, Ag-Zone and Mid Zone, contribute 80% of the increase to the mineral resources. These zones correspond to the new massive sulphide carbonate-replacement type mineralization encountered in drilling this Fall (see press releases November 4 and October 17, 2008) as well as to the broader mineralized zones of stringers and veins developed in a skarn-type environment along and within the eastern portion of the diorite intrusive coring the centre of the property. Estimated Resources extend from surface down to vertical depth of between 400 and 600 metres below surface. Oxidized mineralization is mostly encountered near surface and accounts for 50% of Indicated resources. Overall, oxide resources represent only a small portion of the estimated resources (Table 1).

Resource Methodology

Indicated and Inferred Resources were estimated using the polygonal method on longitudinal sections for each of the thirteen veins and/or zones. Polygons were computer generated using ProMine software which also calculated the mineral resource composite grade numbers. Geological interpretation of the mineralized zones was based on stratigraphy, mineralization and structure derived from the diamond drill holes as well as from surface and underground sampling information that was input into MineSight software. All drill holes intercepts were calculated using a 1 metre minimum true width for narrow veins and at 2.70 metres minimum true width for the bulk mining areas, with a near zero grade value allowance for internal dilution.

Undiluted resource were estimated using an NSR value cut-off factor of US$45/t (155 grams per tonne) for narrow, high grade veins based on information derived from previous mining activities on the Velardena Property of ECU Silver. A cut-off value of US$25 per tonne (86 grams per tonne) was used for the bulk tonnage zones based on previous bulk mining tests completed by ECU Silver.

The mineral potential of a property cannot be estimated to the same accuracy as a mineral resource and must be stated as a range. To calculate a range for grades, a factor of minus 10% was applied for the downside (minimum) and plus 10% for the upside (maximum) potential. The maximum dip extension of the Mineral Potential was set at 400 metres and the minimum dip extension at 200 metres based on the known height of the major veins systems, unless the property boundary or a fault was encountered whereupon the dip extent was cut to that distance.

Quality Control

All sample analysis included in the resource estimate were performed by ALS Chemex accredited assay laboratories of Guadalajara and Vancouver. The San Diego drilling program is supervised by Ms. Kateri Marchand, P.Geol. and Qualified Person under National Instrument 43-101 guidelines. Assay samples are taken from either NQ, BQ or HQ size drill core, cut in half with one half sent to the laboratory and the other half stored at the project site and retained for future reference. A strict QA/QC program is followed which includes mineralized standards and blanks for each batch of 25 samples. Check samples representing 2.5% of the 10,500 samples taken during the course of the Phase 1 to 3 programs were are also sent to SGS certified laboratory of Durango (Mexico).

The content of this news release was reviewed by Kateri. Marchand, the qualified person in charge of the San Diego Project and was also reviewed by William .J. Lewis P.Geo of Micon International Limited.

Cautionary Statements:

Mineral resources that are not mineral reserves do not have demonstrated economic viability. This preliminary economic assessment of the mineral resources is preliminary in nature and there is no certainty that a preliminary economic assessment will be realized.

The mineral potential of the San Diego property is conceptual in nature and there has been insufficient exploration conducted within the mineral potential evaluation to define a mineral resource. It is also uncertain if further exploration will result in the targets being delineated as mineral resources.

Table 1.  Mineral Potential Summary - San Diego Property



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              Tonnes   Au g/t   Ag g/t    Pb %   Zn %    Oz. Ag Eq.

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Minimum   15,230,137     0.17      116   2.18%  2.66%   173,504,649

Maximum   42,352,740     0.10       66   1.24%  1.52%   389,458,579

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     TABLE 2: SUMMARY OF INDICATED AND INFERRED RESOURCES AND

SILVER EQUIVALENT GRADES AND METAL CONTENT, SAN DIEGO PROJECT, MEXICO



OXIDES

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                       Au   Ag   Pb   Zn    Au      Ag     Pb   Zn   Oz-Ag

INDICATED    Tonnes   g/t   g/t   %    %    oz.     oz.  (lbs)(lbs)    Eq.

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La Cruz      78,550  0.86   285          2,160   719,946           889,591

La Rata      41,427  0.31   247            413   329,533           361,992

Montanez HW  41,733  0.19   218            251   292,394           312,082

El Jal        1,865  0.27   316             16    18,978            20,232

Cantarranas  16,505  0.25   214            132   113,342           123,686

Oxides 

 Indicated  180,080  0.51   255          2,972 1,474,194         1,707,582



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                       Au   Ag   Pb   Zn    Au      Ag     Pb   Zn   Oz-Ag

INFERRED     Tonnes   g/t   g/t   %    %    oz.     oz.  (lbs)(lbs)    Eq.

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Arroyo       23,444  0.10   265             79   199,937           206,113

Canta Splay   3,751  0.00   244                   29,426            29,426

La Cruz      55,857  0.71   284          1,272   510,839           610,679

La Rata West 38,138  0.06   219             71   269,138           274,717

La Rata      13,887  0.60   228            268   101,797           122,828

SD Vein      32,374  0.00   577                  600,569           600,569

Oxides 

 Inferred   167,451  0.31   318          1,689 1,711,707         1,844,333

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SULFIDES

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                           Au    Ag    Pb     Zn

INDICATED        Tonnes   g/t   g/t     %      %

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La Cruz         122,924  0.16   203  2.58   1.27

La Rata           3,161  0.27   360  0.72   0.30

Montanez HW      29,834  0.10   317  2.11   2.52

El Jal           14,322  0.27   316  0.95   0.41

Cantarranas      20,531  0.27   231  1.12   0.97

Sulfides 

 Indicated      190,772  0.17   235  2.20   1.35

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                  Au        Ag          Pb          Zn       Oz-Ag

                  oz.       oz.       (lbs)       (lbs)        Eq.

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La Cruz          642   802,893   6,988,866   3,443,760   1,595,358

La Rata           27    36,623      50,229      21,051      43,825

Montanez HW       94   303,587   1,390,568   1,654,470     524,278

El Jal           122   145,727     298,869     128,882     185,835

Cantarranas      181   152,541     509,038     440,776     233,672

Sulfides 

 Indicated     1,066 1,441,372   9,237,569   5,688,939   2,582,968

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                           Au    Ag    Pb     Zn

INFERRED         Tonnes   g/t   g/t     %      %

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La Cruz         747,104  0.19    87  1.62   1.86

Ag Zone       3,107,096  0.09    78  1.07   1.13

Montanez FW   2,995,963  0.03    72  1.04   1.02

Montanez 

 Centro         916,854  0.34    67  1.15   1.63

San Jose      2,100,076  0.38   270  6.76   7.50

Arroyo          238,631  0.08   175  0.19   0.18

Canta Splay      68,325  0.00   203  0.09   0.45

Cantarranas   2,694,331  0.00   112  1.88   1.88

La Rata         549,469  0.12   324  5.55  10.17

La Rata W         3,658  0.30   505  0.90   0.30

El Jal          498,667  0.22   229  0.57   0.81

Montanez HW   3,977,990  0.21    74  1.35   1.79

SD Vein         499,818  0.01   109  1.15   1.32

Mid Zone      3,066,870  0.07    56  0.72   1.07

Sulfides 

 Inferred    21,464,852  0.13   108  1.84   2.21

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Indicated All   370,852 0.339   245  1.80   1.33



Inferred All 21,632,303 0.134   110  1.84   2.21

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                  Au         Ag           Pb             Zn         Oz-Ag

                  oz.        oz.        (lbs)          (lbs)          Eq.

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La Cruz        4,640   2,084,592   26,606,313     30,558,993    6,456,295

Ag Zone        8,778   7,805,229   73,629,246     77,700,582   19,118,939

Montanez FW    2,426   6,970,700   68,714,064     67,386,705   16,728,978

Montanez 

 Centro       10,157   1,964,391   23,343,091     32,934,380    6,692,735

San Jose      25,448  18,248,781  313,000,680    347,393,381   66,569,978

Arroyo           579   1,345,225      989,277        950,619    1,527,089

Canta Splay        0     445,585      137,482        670,840      501,058

Cantarranas      181   9,710,474  111,712,963    111,585,563   25,417,320

La Rata        2,051   5,715,494   67,275,264    123,148,648   19,118,955

La Rata W         35      59,392       72,579         24,193       69,083

El Jal         3,566   3,666,145    6,262,459      8,947,573    5,008,290

Montanez HW   26,830   9,497,471  118,653,948    156,953,444   30,876,485

SD Vein          157   1,745,603   12,687,218     14,514,742   3,664,9812

Mid Zone       6,413   5,499,330   48,903,577     72,331,363   14,464,048

Sulfides 

 Inferred     91,261  74,758,411  871,988,161  1,045,101,028  216,214,233

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Indicated All  4,038   2,915,566   14,712,398     10,837,736    4,290,550



Inferred All  92,951  76,470,118  871,988,161  1,045,101,028  218,058,566

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