Deepest Intersection In Yaragua System To Date

TORONTO - Continental Gold Limited reported assay results for nine diamond drill-holes from the Yaragua system at the Buriticç project in Antioquia, Colombia. Ten drills are currently on site as part of the Company's Phase III diamond drill program budgeted for 2012.

Drilling in the southern vein families has demonstrated that the Yaragua system exhibits more than 1,300 metres of vertical extent and is still open at depth and along strike. A high-grade intercept of 4.5 m @ 20.3 g/t Gold and 102 g/t Silver, including 1.65 m @ 49.2 g/t Gold and 262 g/t Silver in drill-hole BUSY258 is approximately 650 metres vertically below the deepest point of the National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate and is an approximate 500 metre step-out vertically in the Yaragua system.

 High-grade results in eastern Yaragua indicate that these vein intersections have substantial depth and strike continuity.

Continental's 100%-owned 29,185-hectare project, Buriticç, contains several known areas of high-grade gold and silver mineralization, of carbonate base metal ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaragua system and the Veta Sur system) are central to this land package. The Yaragua system has been drill-outlined along 650 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 550 metres of strike and 1,180 vertical metres. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. A maiden NI 43-101 compliant mineral resource estimate for the Yaragua and Veta Sur systems at the Buriticç project yielded combined measured and indicated mineral resources of 1,110,000 tonnes of mineralized material containing 630,000 ounces of gold grading 17.8 g/t Gold, 1,500,000 ounces of silver grading 42 g/t Silver, and 18,700,000 pounds of zinc grading 0.8% Zinc. The inferred mineral resource is 6,900,000 tonnes of mineralized material containing 2,500,000 ounces of gold grading 11.4 g/t Gold, 9,500,000 ounces of silver grading 43 g/t Silver and 88,000,000 pounds of zinc grading 0.6% Zinc.