Vangold Reports Update on Gold Projects in Papua New Guinea

VANGOLD RESOURCES LTD. TSX-V: VAN

NEWS RELEASE

VANGOLD REPORTS UPDATE ON GOLD PROJECTS IN PAPUA NEW GUINEA

March 24, 2011 – Vancouver, BC - Vangold Resources Ltd. ("Vangold" or the "Company") (TSX-V: VAN) is pleased to announce the appointment of Mr. Mike Syka, BSc (Honours), as Exploration Manager for the Company and to provide an update on the active exploration programs underway on the Company’s highly prospective properties in Papua New Guinea (“PNG”). Vangold owns a 95% interest in three exploration licenses Fergusson, Allemata and Mt. Penck.

Exploration activity is continuing at Mt. Penck and plans are underway for an 8 to 9 hole diamond drill program at Fergusson to test the high grade gold potential discovered in the trenches (refer to photo 1). At Allemata, the 3D-IP (induced polarization) is complete with a report expected in the near future.

Dal Brynelsen, President and CEO, commented, “Mike Syka brings to the company 24 years of high level industry expertise, including 13 years of experience in south east Asia, primarily PNG. Mike has a particular knowledge of both high and low sulphide epithermal gold and porphyry copper deposits. His ability to take a project from reconnaissance to pre-feasibility will be a significant contribution to Vangold’s success as it accelerates its PNG exploration programs”.

Please see below the preliminary results from the diamond drill holes at Mt. Penck;

Diamond drill hole MPD073 was drilled on the western shoulder of one of the many 3D-IP anomalies within the Mt. Penck property (refer to previous press releases and figure 1) and intersected up to 3 meters of 2.80 g/t within arsenopyrite sulphides (refer to table 1). Additional zones of gold mineralization extend from 41 to 266 meters depth. This hole was drilled adjacent to the IP anomaly shown in figure 1 to determine if the gold mineralization extended beyond the actual IP anomaly.

Diamond drill hole MPD075 was drilled near the centre of this anomaly to determine if the gold and copper mineralization is directly related to the IP anomaly (as at the nearby Mt. Nakru Property of Coppermoly, Vangold is a significant shareholder in Coppermoly). Results from this drill hole show sulfide (pyrite and arsenopyrite) mineralization throughout the entire hole. In light of the close association of gold mineralization with arsenopyrite, the sulphides associated with the 3D-IP anomaly, in MPD075, demonstrate significant tonnage potential of gold and copper mineralization. Assay results for MPD075 are pending and expected in April, 2011.

The Mt. Penck project is within a four hour drive (56 kilometers) from an existing deep water port at the provincial capital of Kimbe on New Britain Island (refer to figure 2). Existing infrastructure surrounding the oil palm dominated industry at Kimbe will be essential for future development of the project.

Photo 1: Freegold insitue taken from trench at Vangold’s Fergusson property by Peter McNeil P.Geo in Sept, 2010 the largest piece of Gold was approx 1.02 ounces.

Figure 1: Kavola Chargeability Geophysical Anomaly and Drillhole Locations.

Table 1: Mineralized intercepts in diamond drill core hole MPD073 (cut off 0.5g/t Au).

Figure 2: Topography Image and Location of Mt. Penck Project.

“The technical information in this release was prepared under the direction of Robert D McNeil, a Fellow of the Australian Institute of Mining and Metallurgy and a Qualified Person as defined by National Instrument 43-101. Mr. McNeil has read and approves the information contained herein.

About Vangold Resources Ltd. In Papua New Guinea, Vangold has three advanced gold properties, the Mt. Penck, Fergusson and Allemata properties. The properties are located along the “Pacific Rim of Fire”, the active circum- Pacific volcanic belt that is host to large copper-gold porphyry systems (Grasberg, Ok Tedi, Panguna and Frieda River) and to a number of world class epithermal gold deposits, including the multi-million ounce deposits at Barrick’s Porgera and Newcrest Mining’s Lihir gold mines. Headquartered in Vancouver, Canada, Vangold holds a diversified portfolio of mineral projects in North America, Papua New Guinea and Uganda, as well as oil and gas concessions in Armenia. In addition, Vangold holds a significant stake in Coppermoly Limited, an Australian listed security (ASX: COY). Vangold’s shares are listed on the Toronto Venture Stock Exchange under the symbol VAN and on the Frankfurt Stock Exchange under the symbol VAQ.

To find out more about Vangold please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email [email protected].

On Behalf of the Board of

VANGOLD RESOURCES LTD.

"Dal Brynelsen"

Dal Brynelsen, President and CEO

Disclaimer for Forward-Looking Information

Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.

Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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