Oro Gold and Oro Silver Enter Into a Business Combination Agreement

Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) and Oro Silver Resources
Ltd. ("Oro Silver") (TSX VENTURE:OSR) today jointly announce that they have
entered into a binding letter of agreement (the "Agreement") to combine the two
companies through a plan of arrangement (the "Transaction"). Under the
Agreement, Oro Gold and Oro Silver have agreed, based on the recommendations of
their respective special committees comprised of independent directors (the
"Special Committees") in consultation with their advisors, that the Transaction
will be an all-share transaction whereby Oro Gold would acquire all of the
outstanding securities of Oro Silver on the basis of four common shares of Oro
Silver for each common share of Oro Gold (the "Exchange Ratio"). 


The combination aligns with Oro Gold's corporate strategy of making low-cost
acquisitions of gold ounces in under-explored mining camps that have significant
expansion and discovery potential. Oro Silver's flagship property, El Compas,
has excellent growth potential. 


"With Oro Silver's assets becoming gold dominant, the strategy of the combined
companies will simplify the corporate structure, consolidate management and
reduce costs. This transaction will put us in a strong position to create value
for our shareholders by having two low-cost gold assets with near term gold
production and significant resource growth potential through exploration,"
stated Darren Bahrey, President and CEO of Oro Gold and Oro Silver.


Oro Silver shareholders will benefit from Oro Gold's strong liquidity and market
position combined with participation in the exploration and development
potential of Oro Gold's substantial Mexican property portfolio including the
advanced Taunus deposit. The value of the offer provides Oro Silver shareholders
with an approximate 11% premium to the preceding 20 day volume weighted average
share price. Oro Silver stock options and warrants will be converted to Oro Gold
stock options and warrants at the Exchange Ratio.


Key Points:



--  Combining both companies creates a better capitalized, more liquid
    company with a focused management team that brings an impressive track
    record of past successes in gold exploration and mining to the expanded
    asset portfolio.
--  The combined entity will have two near-term gold production properties
    located in Mexico with excellent infrastructure and resource growth
    potential through exploration.
--  Oro Silver's core asset is the El Compas gold-silver property which has
    a NI 43-101 compliant resource of 65,000 gold-equivalent ounces in the
    indicated category (grading 5.8 g/t gold and 59.1 g/t silver) and 41,200
    gold-equivalent ounces in the inferred category (grading 4.9 g/t gold
    and 45.7 g/t silver), using a 3 g/t gold-equivalent cut-off (See press
    release dated November 12, 2008).
--  Oro Gold's core asset is the Taunus gold deposit which has a NI 43-101
    compliant inferred resource of 200,930 ounces (4.5 million tonnes at an
    average gold grade of 1.4 g/t, using a 0.5 g/t gold cut-off (See press
    release dated July 2, 2008).
--  Post transaction, Oro Gold will have approximately 84 million common
    shares outstanding and cash in excess of $5 million to continue its
    exploration activities, and to complete resource estimation updates and
    necessary engineering studies to advance towards production. 



Oro Silver was a spin-out of Oro Gold in 2007. Management of both companies have
agreed that under current market conditions and in the interest of the
shareholders the consolidation of both entities is the most advantageous
strategy for advancing the companies' gold assets towards production and thus
creating value for shareholders.


Exploration activities conducted this summer has been focused on exploration
drilling at Oro Gold's projects. Four drill rigs are operating with the goal of
adding to the already identified resource and targeting new discoveries. An
additional drilling program will also be commencing at El Compas shortly.


Following the combination of Oro Gold and Oro Silver an updated NI 43-101
compliant resource estimate for both the Taunus and El Compas gold deposits will
be prepared in the fall of 2010. 


The parties are currently negotiating a definitive agreement (the "Definitive
Agreement") that will incorporate the terms of the binding letter and other
terms and conditions customary for transactions of this nature. It is estimated
that the parties will enter into the Definitive Agreement within two weeks. The
Transaction is anticipated to close early in the fourth quarter of 2010 subject
to applicable regulatory authority approval including acceptance by the TSX
Venture Exchange and Oro Silver shareholder approval of at least 2/3 of the
votes cast. 


The board of directors of Oro Gold will announce a new management team following
the completion of this Transaction. 


The directors and officers of Oro Silver, in their capacity as security holders
of Oro Silver, have entered into lock-up agreements for their securities and
unanimously vote in favour of the Transaction.


The full details of the terms of the Transaction will be contained in the
Definitive Agreement that will form part of a proxy statement that will be filed
with the regulatory authorities and mailed to Oro Silver shareholders in
accordance will applicable securities laws. The Transaction is subject to
customary conditions, including regulatory approval, fairness opinions and the
parties negotiating and entering into the Definitive Agreement. The Transaction
is subject to customary deal protection provisions, which include
non-solicitation obligations for Oro Silver with the right to respond to a
superior proposal and terminate on payment of a break fee of $200,000 in certain
circumstances following a right to match any superior proposal in favour of Oro
Gold.


About Oro Silver

Oro Silver's strategy is to develop properties toward production through a
strategic business arrangement and development plan focused on advanced-stage
projects with known silver resources that exhibit potential for expansion. The
El Compas mine continues to be the cornerstone for Oro Silver's growth strategy
in the Zacatecas silver district - known to have produced several billion ounces
of silver and hosts the world's largest silver mine, the Fresnillo Mine, located
45 kilometres to the northwest.


About Oro Gold

Oro Gold is a publicly-listed gold exploration company with projects located in
Mexico and Panama. Oro Gold focuses exploration in under-explored mining camps
that have the potential to host multi-million ounce gold deposits. The
district-scale Trinidad property that hosts the Taunus gold deposit continues to
be Oro Gold's top priority project and main focus of exploration and resource
definition. Oro Gold's mission is to discover world class gold discoveries.


Gary Lustig, P.Geo, a qualified person as defined by National Instrument 43-101
has reviewed the technical content of this press release on behalf of Oro Gold.


Freeman Smith, P. Geo. a qualified person as defined by National Instrument
43-101 has reviewed the technical content of this press release on behalf of Oro
Silver.


On Behalf of the Board of Directors of ORO GOLD RESOURCES LTD.

Ron Ewing, Chair, Special Committee 

On Behalf of the Board of Directors of ORO SILVER RESOURCES LTD.

Gregory J. Martin, Chair, Special Committee

Some statements in this release may contain forward-looking information. These
statements include, but are not limited to the use of the terms "subject to",
"expects", "anticipates", "will", statements with respect to Board assessments,
statements with respect to updating resource estimates, statements with respect
to entering into the Definitive Agreement, future plans and expectations. Such
statements are subject to a number of risks, uncertainties and assumptions.
Actual results and events may vary for a variety of reasons. The assumptions
used in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
Oro Silver Resources Ltd. (TSXV:OSR)
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