Tagish Lake Gold Corp. TSX VENTURE: TLG

RICHMOND, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2008) - Tagish Lake Gold Corp. (TSX VENTURE:TLG) wishes to report that the Board of Directors of the Company have accepted an offer of financing from investors, including Yukon-Shaanxi Mining Company Inc. (YSMC). According to the terms of the letter agreement, the investors will invest C$5,000,000 in Tagish, through private placements of 100,000,0000 Units at C$0.05 per unit. Each unit will consist of one common share plus one-quarter (1/4) of one common share warrant, with each full warrant entitling the holder to purchase an additional common share at C$0.075 per share.

The acquisition of the Units will require that Tagish receive the requisite level of approval from its shareholders. To that end, a Special Meeting of Tagish Shareholders will be held at the offices of Pacific Corporate Trust in Vancouver on September 24, 2008 to approve the investment. The private placement is also conditional on obtaining all necessary regulatory approvals.

On closing, expected within ten days after shareholder approval, the investors will be entitled to appoint directors to the board of directors of Tagish. Any changes to the Board of Tagish are subject to the approval of the TSX Venture Exchange.

The investors will provide C$200,000 in interim financing to allow the Company to meet ongoing needs during the period before the Special Meeting. On closing, the private placement will provide the Company with the funds to redress its financial situation, and to move forward.

Macquarie Bank Limited ("Macquarie") has provided the Company with a written extension to the waiver with respect to financial and other covenants effective until September 30, 2008, pursuant to the Company's interest-bearing C$1,500,000 secured feasibility finance facility originally announced on June 11, 2007.

About Tagish Lake Gold Corp.

Tagish Lake Gold Corp. 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, 178 km2 Skukum Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek gold-silver deposit, the Goddell Gully gold deposit and the Mt. Skukum gold deposit.

Should you wish to receive Company news via email, please email lmalcolm@tagishgold.com and specify "TLG News" in the subject line.

This news release includes certain forward looking statements in respect to various issues including upcoming events. These forward looking statements are based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. Mineral exploration is subject to a high degree of risk, which even a combination of experience, knowledge, and careful evaluation may fail to overcome. Exploration activities are also expensive. The Company will therefore require additional financing to carry on its business, and such financing may not be available when it is needed. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.