Goldsource Completes Initial Drill Program Border Property, Saskatchewan

VANCOUVER, B.C.  August 19, 2008 � Goldsource Mines Inc. (the �Company�) is pleased to announce that it has completed offset hole BD08-06A, hole BD08-08 and hole BD08-09 (see attached drill plan) which are the last of this series of holes to be completed in the initial exploration drilling program at the Border Property near Hudson Bay, Saskatchewan.

Hole BD08-06A was drilled approximately 100 metres west of discovery hole BD08-06. This hole was drilled to a depth of 117.0 where it was abandoned due to down hole problems. The hole encountered a coal intercept of 41.1 metres including partings between 70.5 metres and 111.6 metres. A continuous coal interval of 23.0 metres was encountered from 70.5 - 93.5 metres with minor partings and the remaining 18.1 metres being mixed coal and highly carbonaceous, sandy siltstones with two predominantly coal intervals from 100.0 - 101.8 metres and 109.3 - 111.6 metres. The overall coal interval is approximately 6.9 metres greater in this hole than in BD08-06 due mainly to the increased thickness of the coal with partings at the base of the continuous coal interval.

The hole was drilled as an offset to discovery hole BD08-06, which intercepted 34.2 metres of coal including 24.0 metres of continuous coal. The purpose of the hole was to obtain additional samples for analyses and a down-hole geophysical log of the stratigraphic section at this point.  The coal in BD08-06A is black, hard and dull to bright with few visible partings and appears comparable in most respects to that of the intercept of discovery hole BD08-06 which was ranked as sub-bituminous to bituminous.

Hole BD08-08 was drilled approximately 2.8 kilometres to the northwest of BD08-05. This location was to test an area that exhibited an airborne geophysical signature that was somewhat different than that of the major coal intercepts encountered in the discovery holes and holes BD08-02 and BD08-05 and was believed to be within a broader depositional basin. The hole was drilled to a depth of 132.3 metres and intercepted inter-bedded mudstones, siltstones and sand before entering Devonian limestones at a depth of 121.5 metres. There was no coal intercepted in this hole.

Hole BD08-09 was drilled approximately 1.0 kilometre west of hole BD08-04 and 3.8 kilometres southwest of hole BD08-03. The hole was drilled to a depth of 84.0 metres and encountered 6.7 metres of coal with minor mudstone partings from 45.8 - 52.5 metres. The hole was drilled to test a geophysical anomaly that had a slightly different set of parameters than previous holes that encountered broad intercepts of coal. Both the coal and the Devonian limestones were encountered at higher elevations than in the discovery holes. The coal interval was thicker with fewer minor partings than hole BD08-04 to the east suggesting that BD08-09 is more towards the central axis of a basin. The coal in BD08-09 is black, hard and dull to bright with some visible partings and appears comparable in most respects to that of the intercepts of discovery holes which were ranked as sub-bituminous to bituminous.

The Company cautions against placing undue reliance on the visual observations of the coal until the results of the analytical work have been announced.

J. Scott Drever, President stated; �The completion of this program has given us important information about the nature of this coal deposit. As an early stage exploration program, the information obtained has helped us understand some of the geological and geophysical indicators of where the coal occurs and as importantly, where it does not occur. We will use data acquired from this limited initial program to plan the next steps for the delineation of the coal encountered to date and identification of possible additional coal basins on the property. We expect to compile the data, including sample analyses, over the next several weeks to develop a working geological model that will enable us to plan for detailed drilling of the known occurrences as well as to test additional areas of potential. The permitting process for a major drill program commencing after freeze-up is well underway. Pending commencement of the winter program, we will refine the interpretations of the airborne geophysics and explore other possible methods to define the potential geological basins and the presence of coal within those basins.� 

N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company�s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company�s control.  These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data,  the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company�s management on the date the statements are made.  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.

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