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Soils Results Indicate Second Zone of Mineralization Along Strike from Iguanacito Zone

Angel Gold Corp. ("Angel" or the "Company") is pleased to announce that an 80m wide soil silver anomaly of greater than 200ppb Ag (peak value of 360ppb Ag) has been encountered extending the potential of the Iguanacito Prospect further along strike to the northwest after a gap of approximately 250m with essentially no outcrops and relatively weak surficial gold-silver response. These results are of the same tenor as those obtained in the initial 2015 soils line over the discovery outcrop at Iguanacito. An Induced Polarization geophysical program is being planned to test at depth and along strike of the high-grade silver and gold mineralization discovered in Angel's surface exploration program in the area to confirm the potential size and continuity of the exploration target.

Though high-grade silver anomalies were encountered, there was no significant gold response obtained in the current sampling - with a peak gold in soils value of only 10.9 ppb within the sampled area. Significantly, however, artisanal prospecting pits have been located within the area of the silver soil anomaly.

A table showing all gold and silver soils results is included as Table 1 at the end of this release.

"We are highly encouraged with the soils results indicating a second zone of mineralisation along strike from the currently identified Iguanacito zone," says Stella Frias, President and CEO of Angel Gold Corp. "We are now planning a geophysics (Induced Polarization) program to test for subsurface targets in the silver rich Iguanacito area. We believe that this will confirm additional mineralized zones at depth and support a much larger opportunity than what is visible from the high grade silver surface samples."

Mineralization along veins and structures commonly occurs discontinuously in high grade ore shoots separated by low grade or barren intervals of vein/structure, so the apparent gap in interesting response at the surface is common where much larger and contiguous mineralized zones may exist below surface.

This soil sampled area is generally underlain by the same quartz-rich rocks (quartz diorite and granodiorite) that host the majority of the intense quartz sericite and silica alteration throughout the Iguanacito Prospect. However an outcrop of non-weathered low-quartz felsic diorite intrusive was located flanking the main anomalous soils response, with the mafic (dark minerals) phase of this rock having been almost totally destroyed and heavily replaced by pyrite (sulfidation). This confirms there having been a flow of sulphur-rich fluids through the rock, which often indicates proximity to more intense alteration and mineralisation. This intrusive is very different to the more quartz-rich intrusives that host the bulk of the sericitisation and mineralization at Iguanacito, and may represent a younger phase. It is considered highly encouraging to find a sulfidised intrusive present within the mineralized system, where the source of the alteration is thought to be from a younger intrusive phase.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/angel_gold_corp_aug15_2016_figure1.pdf

Significance of the results

The high silver and gold values returned to date at Iguanacito occur to the southeast of an indicated northeast trending offsetting fault. Some difficulty had been encountered in locating and tracing the continuations of the two specific mineralized alteration zones northwest of this indicated fault (with additional minor vertical faulting being suspected) and work is currently ongoing in this area between the soils lines and the fault, with highly encouraging pyritic zones being encountered (results pending) in trenching (trench 10-extended and trench 21). It is possible that this fault offset occurs at a slight flexure in the structure resulting in a slight change of strike direction on the northwest side of the fault. The accompanying map shows the located exposures of alteration northwest of the fault without any interpretation attempting to link them.

The most northwestern rock results received to date, including from two recently discovered heavily overgrown artisanal miner adits, and shown on the soils silver result map above, are geologically encouraging. The best result of 0.5m @ 0.94 g/t Au 56.5 Ag was in an adit driven on a quartz stockworked silicified zone containing a central 15cm pyritic quartz vein, the stockworked silicified zone itself being hosted in intensely sericitised granodiorite. Sampling from the previously reported (press release dated 20 June 2016) trench 11 returned 2.85m @ 0.05g/t Au, 9.26g/t Ag within the same alteration zone. A single sample from an adit in the parallel northern zone returned a barren assay, whilst a newly discovered third alteration zone, a further 60m southwest of the previously identified zones, is an intense sericite alteration zone, contained no visible mineralization in the exposure and wasn't sampled.

All new and previously reported rock samples in this area are included as tables 2 and 3 respectively at the end of this release.

The original ridge and spur soils silver anomaly over the Iguanacito discovery outcrop was 120m @ >200ppb Ag (peak value of 7100 ppb Ag), within which was a coincident 50m wide gold anomalous core of >20ppbAu, and tellurium values to a maximum of only 110ppb.

The presence of the 80m wide soil >200ppb silver geochemical response on the furthermost sampling line could reflect the commencement of another zone of near surface mineralization along the continuation of the Iguanacito structure.

The 200ppb Ag anomaly is haloed by a zone of >100ppb silver which also extends along the northeastern ends of the other two soils lines coincident with the indicated position of the currently known alteration zones (shown in figure 1) Values of tellurium in soils of this north-westernmost line are also consistently anomalous (average 247ppb, peak 560ppb) across the entire length of the line, extending over and flanking the soil silver anomaly. Elevated tellurium is typically seen within the El Porvenir tenements associated with areas of high gold and silver values, though with a much higher gold to silver ratio than has been generally been observed to date at Iguanacito.

The significant increase of width (greater than 210m) of the 100ppb silver anomaly with an 80m wide core of >200ppb Ag, the association with elevated tellurium, as well as the presence of sulfidised intrusive (a younger phase of intrusive?) warrants a continuation of the soils sampling to the northwest, followed by pitting and trenching. The general similarity of soil element values over the discovery outcrop of Iguanacito with the soil anomalism reported here confirms the significance of this soil indicated mineralized zone extension and justifies the need for further sampling along strike to the northwest.

Sampling

Two northeast-southwest trending soils lines were cut and sampled at distances of 100m and 300m respectively to the northwest of an intensely sericitised outcrop in a stream bed (Agorobo Creek), currently the northwesternmost mapped extent of the Iguanacito alteration zones. Additionally the crest of a northwest trending ridge occurring between these two cut lines was also sampled.

Sampling was at 10m intervals, and was taken from the uppermost B Horizon, with vegetation and the humic A horizon being removed and sampling of generally the top 5cm only of the underlying saprolite/soil. Coarse material was removed by hand (or 3mm screen, where possible). Samples were submitted as a single batch, and were dried, disaggregated and sieved to -80# (177micron) at ALS Laboratories in Medellin.

Analysis / Quality Control and Quality Assurance

Soil samples were submitted to ALS Medellin for preparation and assayed by ALS Peru. Samples were prepared using method PREP-41 with drying at <60°C/140F and sample sieved to -180 micron (80 mesh). The soil geochemical assay package ST43-PKG was used, with Au by 25g aqua regia digestion and ICP-MS finish, paired with multi-element aqua regia digest super trace 51-element ICP-MS. There were no overlimits to reassay. Angel Gold submitted blanks and field duplicates with the sample batches as part of its QAQC program.

Rock samples were submitted to ALS Medellin for preparation and assayed by ALS Peru. Gold was determined using Fire Assay AA finish (method Au-AA23), with gold samples >10 g/t being reassayed by Fire Assay Gravimetric Finish (method Au_GRA21). Silver was determined by 51 element ICP-MS (method ME-MS41) with silver greater than 100g/t samples being re-determined by atomic absorbtion (method Ag-OG46). Angel submitted blanks, duplicates and standards with the sample batches as part of its QAQC program.

Qualified Person

Mr. James G. Burns, P.Eng, a Qualified Person under National Instrument 43-101 standards and a technical advisor to the Company has reviewed and approved the technical information contained in this news release.

Source: http://www.angelgoldcorp.com/

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