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Thursday, November 8, 2007

Linux Gold Corp. Acquires Option on Gold/Silver Property near Fairbanks, Alaska for US$10.3 Million

- Linux Gold Corp. (OTCBB:LNXGF) announced today that the Company has acquired an option to purchase a 100% interest in 26 mining claims, close to the historic Ester Dome mining camp near Fairbanks, Alaska for US$10.3 million, to be paid in cash and shares, in stages, over a two-year period. Ester Dome is reported to be the largest placer gold
discovery in the Fairbanks Mining Division. The owner of the 26 claims considers the land was and is the primary source for the majority of Placer Gold that has been mined from Ester Creek and its drainage over many years.

It was announced on September 9, 2007, a major gold/silver discovery was located on the claims, with a potential strike length of 6,500', width of 100' and minimum depth of 100' of high grade gold and silver values based on the sampling and trenching program completed this year. The area has been re-sampled and results are pending.

Drilling is planned on the mineralized zone this year, to confirm gold and silver values on the property.


Gold was first discovered in Alaska on Pedro Dome with Ester Dome being the second discovery. Since the discovery, the Ester Creek drainage has been the number one producer of gold, second only to a creek in the Brooks Range of Alaska above the Arctic Circle. The Ester Mining District has yielded more gold than the rest of Alaska combined, according to the University of Alaska Mining Department.

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