Universal Gold Mining Corp. Announces Initial Closing of Private Placement

NEW YORK, May 26, 2010 - Universal Gold Mining Corp. (OTC Bulletin Board: UGDM), (the "Company")
is pleased to announce that on May 24, 2010 it successfully completed an
initial closing of its private placement offering (the "Offering") of common
stock at US$0.10 per share, to foreign and accredited investors. An aggregate
of 23,000,000 shares were sold resulting in gross proceeds of US$2,300,000.

The Company has granted registration rights to the investors purchasing
shares in the Offering.

This press release does not constitute an offer to sell, or a
solicitation of an offer to purchase, any of the foregoing or other
securities of the Company. Any such offer may only be made by offering
materials issued by the Company. The foregoing referenced securities have not
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), or any state securities laws and such securities may not be offered or
sold within the United States or to or for the account or benefit of U.S.
persons unless registered under the Securities Act and any applicable state
securities laws or an exemption from such registration is available.

About Universal Gold Mining Corp.

Universal Gold Mining Corp. is an early stage, U.S. public company
currently pursuing a business strategy in the world-wide gold mining sector,
with an initial focus on identifying and acquiring opportunities in the
Americas.

Forward-Looking Statements

Statements in this news release that are not statements of historical
fact constitute forward-looking statements, which are subject to risks and
uncertainties. Words such as "expects," "intends," "plans," "may," "could,"
"should," "anticipates," "likely," "believes" and words of similar import
also identify forward-looking statements. Forward-looking statements are
based on current facts and analyses and other information that are based on
forecasts of future results, estimates of amounts not yet determined and
assumptions of management, including, but not limited to, the Company's
belief that it can identify corporate acquisition and/or joint venture
opportunities in the gold mining sector, and that the Company can establish
the technical and managerial infrastructure and raise the necessary capital
to take advantage of, and successfully participate in such opportunities.
Actual results may differ materially from those currently anticipated due to
a number of factors beyond the reasonable control of the Company. Additional
information on risks and other factors that may affect the business and
financial results of the Company can be found in filings of the Company with
the U.S. Securities and Exchange Commission.

David Rector, President and CEO of Universal Gold Mining Corp., +1-212-400-6900