Forest Gate Drills More Kimberlite on 121 Pipe; Drilling Starts on 122 Pipe

Montreal, Qc. August 1, 2006 - Forest Gate Resources Inc. reports that it has intersected kimberlite in two drill holes on the 121 Kimberlite located on its East Side Property near Prince Albert, Saskatchewan. The 121 Kimberlite spills eastward across a shared boundary with the Shore Gold/DeBeers joint venture.

The two vertical PQ-sized drill holes, FG06-30 & FG06-31 were drilled approximately 75 metres north and 100 metres south of last year's discovery hole FG05-29, respectively. Drill hole FG05-29 intercepted 22.7 metres of kimberlite that yielded 55 diamonds including four macrodiamonds. For more detailed diamond information from drill hole FG05-29, please refer to the press release dated December 14, 2005.

Drill hole FG06-30 intercepted 23.2 metres of continuous kimberlite whilst drill hole FG06-31 intercepted 19.3 metres of kimberlite separated by a thin mudstone horizon. Both holes are currently being geologically logged and will be sampled for diamonds.

"We are following through on our plan to further delineate our portion of the 121 Kimberlite." said Steve Roebuck, Forest Gate's Vice President of Exploration. "We are pleased with these early results and we are encouraged to drill more holes on this important kimberlite pipe."

The Encore Drilling rig has now been mobilized to drill on Forest Gate's West Side property with the hope of finding a western extension of the 122 Kimberlite. The West Side property, also on a shared boundary with the Shore Gold/DeBeers joint venture, was acquired last year and has seen only limited exploration. The plan is to drill at least one PQ-sized drill hole and possibly a second if the first drill hole is successful in discovering kimberlite.

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.