Continental Gold Announces New High-Grade Sampling Results from Buriticá Project in Colombia

Continental Gold Inc.("Continental" or the "Company") is pleased to announce new high-grade channel sampling results from development cross-cuts and drifts from level 1B of the Yaraguá mine at the Company's 100% owned Buriticá project in Antioquia, Colombia. Following completion of the trial long-hole stope (see Company press release dated May 3, 2016), approximately 300 metres of new underground development measuring 3.5 metres X 3.5 metres on level 1B has been completed to date, which will allow the Company to begin additional mechanized mining in the Yaraguá vein system. Assay results presented below have not only confirmed that vein orientation and geometries are as modelled in the current Feasibility Study ("FS") mine plan but have also outlined a significantly wider zone of high-grade precious metal mineralization that may be amenable to wider, more productive extraction than currently envisioned.

Cross-Cut Results (Table 1 and Figures 1-3)

Figure 1 - Plan View of the Yaraguá Cross-Cuts and Drifts showing the projection of veins in the current Yaraguá mineral resource model on geology-topography and underground developments. The gold grades of composited channel sample results are color-coded according to the legend: http://www.marketwire.com/library/MwGo/2016/6/27/11G104487/Images/RY_crosscuts_grades_20160623_edit_small_500px-df69edb22f6e8709b6ac17aabb76532e.jpg

• Continuous channel sampling of three cross-cuts on Level 1B at an elevation of 1,540 metres have intersected 5 master veins in the current Yaraguá minable reserve estimate as well as widespread intervening mineralization in the form of veinlets oblique to and between the master veins. Mineralized intervals, over true horizontal widths include:
  • 22 metres @ 10.9 g/t gold and 25 g/t silver (CAM 9540S)
  • 30 metres @ 9.3 g/t gold and 26 g/t silver (EST9519S)
  • 29 metres @ 8.6 g/t gold and 23 g/t silver (EST9510S);
• Cumulative mineralization in the three cross-cuts located between the 5 master veins (which is deemed dilution in the minable reserve estimate) yielded a weighted average of 3.4 g/t gold and 18 g/t silver over 68.92 metres;
• This zone, which covers an area measuring approximately 50 metres along strike X 30 metres across X 20 metres vertical, confirms excellent continuity to the zone of widespread mineralization encountered approximately 20 metres above on Level 0 (elevation of 1,558 metres) (see Company press release dated January 7, 2015). Given the strong vertical continuity, this zone may be amenable to wider, more productive extraction, and remains open at depth, as well as along strike to the east and west; and
• Based on the Company's continued success in identifying broad areas of mineralization with underground development, which tend to be located proximal to contact zones between andesitic intrusions, sediments and breccias, a 3,000 metre underground drilling program has been planned for late Q3, 2016 targeting similar zones in the Yaraguá deposit.

Drift Results (Table 2 and Figures 1-3)

• Systematic channel sampling across new drifts in the San Antonio Vein and the NWSE vein has demonstrated continuity of high-grade gold mineralization through substantial strike lengths over true horizontal widths approximating those proposed for mining in the FS as follows:
  • 2.7 metres @ 21.6 g/t gold and 41 g/t silver along 37.5 metres (San Antonio Vein)
  • 2.71 metres @ 18.4 g/t gold and 41 g/t silver along 72.5 metres (NWSE vein)

"Underground development sampling at Yaraguá continues to deliver high-grade results over significant true widths," commented Ari Sussman, CEO. "Combining these broad and high-grade channel sampling results with the excellent results encountered in our long-hole trial mining test stope announced on May 3, 2016 provides us with reason to be optimistic about the possibility of introducing wider, more productive extraction methods to certain areas within the FS mine plan. We look forward to completing environmental permitting later this year and commencing project financing and development shortly thereafter."