Regionally, the Imperial is located within the Walker Lane, which hosts several important  gold and precious metals deposits such as Bullfrog, Goldfield, and Tonopah. The Goldfield District has produced nearly 5 million ounces, a large portion of which came from two claims comprising approximately 40 acres of ground. Exploration conducted to date by others has led management of American Goldfields to conclude that the Imperial contains significant concentrations of gold and is a property of merit.

The Imperial is located in Esmeralda County, NV, approximately 60 kilometers southwest of the town of Tonopah, and 300 kilometers northwest of Las Vegas, in the Railroad Springs mining district. The property consists of 22 mineral claims covering approximately 450 acres between the Montezuma Range to the northeast and the Silver Peak Range to the southwest.

Exploration work in the 1980's included trenching, sampling and approximately 8,700 feet of shallow drilling in 48 holes. Several reverse-circulation drill holes were drilled in 1983-84, of which 5 intercepted significant thicknesses of +0.03 ounces per ton oxide gold. The best hole drilled was a 30 meter intercept of 0.036 ounces per ton including 6 meters of 0.062 ounces per ton. Additional work carried out in 1987 defined a reserve of +0.05 ounce per ton gold and confirmed the presence of Carlin-style mineralization.

Several significant gold targets are present at Imperial, and the company is in the process of initiating a drill program. Management anticipates drills will be in place by mid-to-late August. The company will not release any corporate drill data until the first phase of exploration is well underway.

"The Imperial is an exciting mineral exploration property, in an area which we believe to be one of the highest-profile mineral regions in Nevada," said Donald Neal, President and CEO. "We believe that the Imperial, together with the highly-prospective Gilman project, comprise a significant foothold in what has historically been one of the most valuable and concentrated gold districts in the world."

Completion of the transaction is subject to certain conditions. Terms of the transaction are disclosed in the Company's EDGAR filings.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.