Gold Resource extends El Arroyo mineralization

Gold Resource Corporation reports 1 meter of 11.15 g/t gold, 658 g/t silver within 7 meters of 4.51 g/t gold, 350 g/t silver or 51.83 g/t (1.67 oz/tonne) gold equivalent (AuEq) and 2 meters of 4.34 g/t gold, 3645 g/t silver or 90.36 g/t (2.91 oz/tonne) (AuEq) at its recently discovered El Arroyo area.

El Arroyo is part of GRC’s El Aguila Project in the southern state of Oaxaca, Mexico, which is targeting gold production the second half of 2008 subject to timely obtaining the remaining required permits, regulatory approvals and equipment delivery schedules.

The new Hole #108007 is the second drill hole into the recently discovered El Arroyo area. This hole targeted mineralization below the previously drilled high-grade mineralization in Hole # 108002 that intercepted 3 meters of 2.49 oz/tonne AuEq. These results represent core samples that were sent for priority assaying. Assay results for the remainder of this hole have not yet been received.

Gold Resource Corporation’s President, William W. Reid, said, the first two drill holes into El Arroyo have returned two of our highest-grade intercepts to date. The first drill Hole #108002 was fantastic, with 3 meters of 2.49 oz AuEq, and now this second drill Hole #108007, at 287 meters, returned 2 meters of 2.91 oz AuEq. This second intercept is 62 meters vertically below the mineralization in the first drill hole. Because the assayed sections for both El Arroyo holes are the only sections for which we have received assay results so far, it is quite possible the mineralized zones in both El Arroyo holes may end up being larger than these selected sections.

It is also exciting that in the first El Arroyo Hole #108002, 84% of the values were in precious metals (gold and silver), and 16% in base metals. This second Hole #108007, 62 meters deeper vertically, the precious metals make up 92% of the values. As we have stated before, once we begin underground mining of the polymetallic ore in the second year of production, it appears that, on average, our base metal values should pay for all costs of production which will in essence make our gold and silver free, stated Mr. Reid.