Forest Gate Discovers Kimberlite on its West Side Property; Extension of 122 Kimberlite Found

Montreal, Qc. August 3, 2006 - Forest Gate Resources Inc. reports that it has intersected kimberlite in a drill-hole targeting the western extension of the 122 Kimberlite located on its 100%-owned West Side Property near Prince Albert, Saskatchewan. Forest Gate's drilling has confirmed the 122 Kimberlite spills westward across a shared boundary with the Shore Gold/DeBeers joint venture.

The vertical PQ-sized drill-hole, FG06-32, intersected approximately 11.8 metres of kimberlite from 154.8 metres to 166.6 metres down-hole. The drill core is currently being geologically logged and will be sampled for diamonds.

"This is an important find for our company and a good first hole on a new project." said Steve Roebuck, Forest Gate's Vice President of Exploration. "We acquired the West Side property last year with the feeling that its full exploration value had yet to be realized. The previous operators had drilled three holes looking for the western extension of the 122 Kimberlite but they missed the target. I feel our experience in the Fort a la Corne camp was the big difference between discovering kimberlite where others had missed."

The 122 Kimberlite has attracted increasing interest since the joint venture reported recovering in July 2005 "a total of 248 macrodiamonds weighing 28.81 carats, including 23 stones larger than 0.25 carats recovered from three 36-inch diameter drill holes." The joint venture went on to report that "the recovery of many stones larger than 0.25 carats and two larger than one carat supports our model of a larger stone population in Kimberlite 122."

A second drill-hole has been spotted 100 metres north of FG06-32 and drilling will commence shortly.

The Fort a la Corne area is host to the world's largest diamondiferous kimberlite pipes. This year approximately $100,000,000 will be spent on exploration and a prefeasibility study on Shore Gold's Star Kimberlite and the joint venture's Orion cluster of kimberlite pipes. Forest Gate Resources has key strategic properties located on the eastern and western flanks of this field.

Please visit the company website www.forestgate.ca to view the August 1, 2006 Saskatchewan Drilling Update Video and new West Side property map.

Ralph Newson, P.Eng., P.Geo. and Qualified Person has edited and reviewed the technical information contained within this press release.

Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and Quebec. The company's shares trade under the symbol FGT on the TSX Venture Exchange.