HIGHLIGHTS MANAGEMENT’S DISCUSSION & ANALYSIS

Property Agreements and Exploration

• Initiation of the first phase of a reverse circulation (“RC”) drill campaign at the Cimarron property located 40 km east of Mazatlan, Sinaloa, Mexico. (June 2008)

• Completion of a National Instrument 43-101 (“NI-43-101”) report on the Taunas and Colinas exploration areas of the Trinidad property in Sinaloa, Mexico, whereby the inferred resources were estimated at 4,494,800 tonnes at an average gold grade of 1.39 g/t, for a total of 200,930 ounces of gold, at a 0.5 g/t gold cut-off. (June 2008)

• Commencement of an additional RC drill program at the Company’s wholly-owned Trinidad property in Sinaloa, Mexico. (July 2008)

• Announcement of the new surface discovery “San Cristobal” on the south eastern corner of the Trinidad property, covering a 12 km2 area and consisting of hydrothermal breccias and quartz veining in four target zones. (July 2008)

• Reporting of assay results for the first phase 2,400 metre RC drill campaign completed at the Cimarron property. The drilling tested the Calerita target located in the central part of the property and confirmed the presence of a significant outcropping gold-bearing zone. (September 2008)

• Announcement of gold assay results for the 4,000 metre RC and core drilling program at the Trinidad property indicating an good potential to increase the gold grade and expand the new zone discovered by Oro Gold. Highlights of the program included 8.50 g/t gold over 61.1 metres in 08TR012 and 5.29 g/t gold over 23.6 metres in 08TR013. (October 2008)

• Reporting of gold assay results for a third twin core hole of the recently completed Trinidad property drill program whereby a core twin of a RC hole located in the new zone northeast of the Taunus pit, intersected 5.3 g/t gold over 7.8 metres from 106.2 to 114.0m and 9.7 g/t gold over 7.0 metres from 131.0 to 138.0m. This confirms a significant increase in gold grade of over 300% in the core interval for the same mineralized interval in the RC hole. (October 2008)

RECENT DEVELOPMENTS

Trinidad Property

The 651 km2 Trinidad property was originally staked by Oro Gold and is located in an area of good infrastructure, 90 kilometres east of Mazatlan. The Company received the Trinidad’s exploration title in 2007. The property includes the former Taunus open-pit gold mine, previously owned by Eldorado Gold Corporation and in production from 1996 to 1998. The expected mine life was 4 years; however, the mine was shut down in 1998 due to high production costs. As a marginal deposit in a weakening commodities market, its true potential was never explored.

The Company obtained feasibility study data for the past-producing mine located on the property and completed its resource estimate using the historical drill data as well as surface work completed by Oro Gold. This resource estimate indicated that 1,624,000 tonnes grading 1.76 g/t for a total of 91,915 ounces of gold remained in the Taunus Pit and Colinas areas. The resource estimate was later increased by 119% to 200,930 ounces of gold representing 4,491,800 tonnes at 1.39 g/t gold at a 0.5 g/t gold cut-off (press releases dated May 29, 2008 and July 2, 2008). In July 2008, the Company commenced a RC and core drill program at Trinidad which was completed in October 2008 (press release dated October 6, 2008).

The drill results indicated good potential to increase the gold grade and expand the new zone discovered by Oro Gold. Highlights of the core drill program included 8.50 g/t gold over 61.1 metres (including 10.2 g/t gold over 40.1 metres) in 08TR012, an infill hole in the new zone; and 5.29 g/t gold over 23.6 metres (including 15.8 g/t over 7.3 metres) in 08TR013, a twin hole in the new zone.

Highlights of the RC drill program included 1.62 g/t gold over 100.0 metres in 08TRRC040, a resource expansion hole in the new zone northeast of the pit; 5.70 g/t gold over 26.0 metres in 08TRRC047B, a resource expansion hole in the new zone northeast of the pit; and 2.51 g/t gold over 18.0 metres in 08TRRC037A, a resource expansion hole south of the pit. The drill intersection of 8.5 g/t gold over 61 metres is significant since it is our first core hole into the heart of a new discovery area.

The results of this drill program have exceeded our expectations. We are on target to reach our 2008 objectives of defining and adding new ounces to our current gold resource base. These results demonstrate outstanding upside potential at Trinidad and the entire district. Approximately 13,000 metres of RC and core drilling have been completed to date, defining Oro Gold’s first significant gold resource target on the property.

In addition, on October 15, 2008 we reported gold assay results for a third twin core hole which intersected 5.3 g/t gold over 7.8 metres and 9.7 g/t gold over 7.0 metres. The core hole is a twin of RC hole 08TRRC029 which had two corresponding intervals: 1.7 g/t gold over 8.0 metres compared to 5.3 g/t gold in the core hole. This confirms a significant increase in gold grade of over 300% in the core interval for the same mineralized interval in the RC hole. All of the core twin holes drilled to date show significantly higher gold grades than reported in the same intervals drilled by RC. We are very excited about these results as it is demonstrating a positive impact on the grade and potential upside of the Taunus gold deposit. It is important to note that the majority of the previous drilling and resource estimation relied on RC drilling. These results show that RC drilling is a good exploration tool, but appears to substantially underestimate the gold grade of this deposit

Based on the results, Oro Gold is planning to update the resource estimate by the first quarter of 2009. Further information on the drill results, the location of the drill holes and the targeted zones can be viewed on our website at www.orogoldresources.com.

Cimarron Property

The 82 km2 Cimarron property is situated in southern Sinaloa state, Mexico, 40 kilometres east of Mazatlan, Mexico and on trend with the historic multi-million ounce past-producing Rosario gold and silver mine. Local infrastructure is well developed and property access is good. In May 2007 the Company optioned the Cimarron property to Mazorro Resources Ltd. (“Mazorro”) whereby Mazorro has the option to acquire a 60% undivided interest in the Cimarron property by spending US$2.7 million in exploration expenditures by June 30, 2011 and by issuing one million common shares in stages over a four-year period. The agreement schedule includes an expenditure of approx US$1.44 million by June 2009. In June 2008, Oro Gold and Mazorro commenced the first phase of a 5,000 metre RC drill program. This program consisted of 2,400 metres of drilling. The drill program was designed to target the kilometre-scale gold anomaly at the Calerita prospect, as well as drill-test anomalies identified from the soil geochemical and magnetic surveys covering 326 line-kilometres.

The Company announced the completion of the drill program in September 2008 (press release dated September 4, 2008). The drilling confirmed the presence of a significant outcropping gold-bearing zone. Highlights of the drill program included holes CIMRC08-001: 0.6 g/t gold over 84 metres; CIMRC08-002: 0.9 g/t gold over 90 metres (including 1.8 g/t gold over 24 metres); CIMRC08-004: 0.7 g/t gold over 60 metres; and CIMRC08-006: 0.5 g/t gold over 76 metres. Based on these encouraging results, two diamond holes were drilled to confirm the RC drilling results (assays are pending) and to provide additional geological data to aid in interpreting the RC results. The Calerita target is centered on a 1 kilometre by 300 metre northeast trending gold-in-soil anomaly hosted in intrusive and volcanic rocks. The drilling at Calerita expanded the known gold mineralization at depth. The dimensions of the zone are now at least 350 metres by 250 metres at surface and to a depth of approximately 100 metres.

The results of the first phase of drilling are very encouraging. We are currently incorporating these results into a 3-D geological model which we will use to guide the next phase of drilling. Based on results obtained to date, we are confident that the next drill program will produce sufficient results to justify completing a resource estimate in the Calerita area. We are also defining new target areas through surface mapping and sampling.

The good infrastructure of the property in terms of road access, proximity to power, and location near an international port makes the project economics potentially very attractive if we continue to discover and define a gold resource. The exploration plan going forward will include an additional 2,500 metres of RC drilling, 300 metres of core drilling, metallurgical test-work, and the completion of a first resource estimate of the Calerita target.

The next phase of drilling will target the potential expansion of the gold resource in the Calerita area as well as test additional targets on the property.

OUTLOOK

The Company will continue to carry out exploration of its mineral properties, and to evaluate new prospects and opportunities. The Company expects to obtain financing in the future primarily through further equity financing, as well as through joint venturing of the Company’s properties to qualified mineral exploration companies. There can be no assurance that the Company will succeed in obtaining additional financing, now or in the future. Failure to raise additional financing on a timely basis could cause the Company to suspend its operation and eventually to forfeit or sell its interest in its mineral properties. Exploration Plans:

• Given the current market conditions, Oro Gold has implemented a number of cost savings measures including significant staff reductions in Mexico, Vancouver and Panama as well as voluntary salary reductions at all levels. All cost cutting measures have been carefully planned to provide the maximum upside exposure to exploration while reducing costs to a minimum.

• Oro Gold plans to focus on advancing the Trinidad property with an emphasis on expanding the potential upside of the new discovery area which has reported significantly higher grade gold results recently as compared to previous RC drilling results. This will be accomplished through additional diamond drilling, geological modelling and further investigations to characterize the fine grained free gold through gravity separation and analysis. Oro Gold’s focus continues to be to increase the current gold resource base at its 100-per-cent-owned flagship Trinidad property.

• Resource estimation activity will be completed as drill results are received and models are updated predominantly for the Trinidad and Cimarron properties. The Company will complete an updated Trinidad resource estimate once assay results are confirmed on the phase 2 drilling, and plans to report a resource update early in the first quarter of 2009. The Company also plans to complete a resource estimate on the Cimarron property, following the completion of its first drill campaign, which will be funded by a joint venture partner. A National Instrument 43-101 compliant resource estimate for Cimarron is expected to be completed by the end of the fourth quarter of 2008.

• Ongoing generative activity and a joint venture strategy will continue to be a fundamental part of Oro Gold’s growth. Oro Gold’s focus is to increase shareholder value through the discovery and definition of low-cost and quality gold resource ounces on our advanced stage properties.

LIQUIDITY AND CAPITAL RESOURCES

The Company is in the exploration stage and therefore has no regular cash flow. At May 31, 2008, the Company had a working capital of $1,207,073 (November 30, 2007 - $2,451,662).

OUTSTANDING SHARE DATA

Fully Diluted at October 28, 2008

31,034,672

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