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September 26, 2005
Kilembe Cobalt Copper Project Exploration Program September Update

September 26, 2005, Vancouver, British Columbia-Uganda Gold Mining Ltd. (TSX Venture Exchange -- Symbol UGM) is pleased to provide and update on activities at the Kilembe Cobalt Copper Project in Uganda.

Exploration:
Diamond drilling is continuing to test for extensions of stratabound cobalt and copper mineralization beyond the historical mine area. Twenty diamond drill holes have been completed for a total of 2,739 meters. Five target areas have been tested so far, with positive results at Buhunga and Bukangama West.

Bukangama West Target:
The Bukangama West target is a large soil geochemical copper anomaly with a coincident ground geophysical IP anomaly. Four of five holes drilled to test the eastern end of the anomaly intersected copper sulphide mineralization. Analytical results were previously released for hole UGM-008. Current results are as follows:

Hole From (m) To (m) Length (meters) Cu % Co %
UGM-009 37.42 56.35 15.84 0.44 0.02
UGM-010 61.11 75.59 14.48 0.48 0.04
UGM-011 62.15 70.90 9.99 0.72 0.08

 

Two holes were drilled approximately 300 meters to the southwest of the above holes to further test the anomaly. Preliminary results of mineralized intercepts are given below. Core samples are currently being prepared for shipment to Mwanza, Tanzania for analysis with results anticipated in the near term.

Hole From (m) To (m) Length (meters) Sulphide % Chalcopyrite %
UGM-013 44.89 47.46 2.57 2.0 1.0
UGM-014 50.00 50.98 0.98 1.5 0.5


Stream Target:
Four short holes were drilled to test the Stream Target for near surface mineralization above the historic mine workings. Two holes intersected mineralization adjacent to existing workings. Preliminary results of mineralized intercepts are given below.

Hole From (m) To (m) Length (meters) Sulphide % Chalcopyrite %
UGM-015 25.08 27.13 2.85 3.0 0.5
UGM-015 28.54 29.16 6.2 5.0 2.5
UGM-015 32.97 33.53 0.56 5.0 3.5
UGM-016 22.87 23.23 0.36 3.0 2.0
UGM-016 23.97 25.30 1.33 2.0 1.5


Northern Target:
The historic Northern Deposit is bounded to the south by a large post-mineral mafic dike. Current drilling is targeting an extension of mineralization on the south side of this feature. No results are available at this time.

Feasibility Study:
A scoping study being conducted by Mr. John H. Purkis, P.Eng, is underway to evaluate various development alternatives for processing cobalt-rich tailings and mineral deposits located in the Kilembe region. The study is examining the economic viability of alternative scenarios for treating cobalt and copper concentrates, including the use of the Kasese Cobalt Company Ltd. owned BIOX/SX-EW cobalt refinery located some 14 kilometers from the existing Kilembe concentrator and mine complex.

Uganda Gold Mining Ltd. was founded in 1997. The Company is earning a 70% interest in the Kilembe Cobalt Copper Project located near Kasese, Uganda, by the completion of a positive feasibility study by January, 2007. More information on the project can be viewed on the company's website at www.ugandagold.com.

This news release has been prepared under the guidance of Matt Ball, Ph.D., P.Geo., Vice-President Exploration, the Company's designated Qualified Person.

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