Developing Royalty Assets
in North America

Ely Gold Announces Royalty Option Agreement

May 3, 2010

Ely Gold & Minerals Inc. (the "Company") announced on February 23, 2010 that it had entered into an agreement (the "Centennial Agreement") to amend a lease agreement (the "Lease") with Centennial Minerals Company LLC ("Centennial") relating to the Centennial property, which comprises part of the Company's Mount Hamilton project in Nevada. Now, to facilitate equity financing of the next stage of work towards the development of the Centennial property, Centennial has agreed to amend the Lease to eliminate the cash payments, the royalty reduction and the put and call options provided for in the Centennial Agreement, and to replace them with options (the "Royalty Reduction Options") in favour of the Company to buy down the Centennial royalty by 3.25% at any time prior to commencement of commercial production on payment of US$3,500,000, and to buy down the Centennial royalty by an additional 1.75% at any time prior to the first anniversary of the date of commencement of commercial production on payment of an additional US$1,500,000. If all options are exercised, the NSR on the Mt. Hamilton property will be capped at 3.0%.

This amendment to the Lease reduces the Company's near term financial obligations by US$4,500,000, with the result that available funds will be used to finance work programs rather than third party payments. To protect Centennial, the Royalty Reduction Options will be rendered void if any person acquires more than 20% of the issued and outstanding voting shares of Ely pursuant to a "takeover bid" which is not supported by the board of directors of Ely, or if the acquisition of DHI Minerals Inc. from Augusta Resource Corporation is terminated.

The Company has filed its audited financial statements and Management Discussion & Analysis for its financial year ended December 31, 2009. Those statements and the MD&A may be viewed on SEDAR at www.sedar.com.

On Behalf of the Board of Directors

Signed "Stephen Kenwood"

Stephen Kenwood, President

For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.

E-mail: [email protected]; Website: www.elygoldandminerals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.