Updated Mineral Resource Estimate For Buritica Project

TORONTO, ON - Continental Gold Inc. reported updated mineral resource estimate for the Yaragua and Veta Sur vein systems at its 100%-owned Buritica project in Antioquia, Colombia. The mineral resource estimate is based on 271,003 meters of drill core sampling and 7,215 meters of underground sampling (as at May 11, 2015) and was prepared in accordance with National Instrument 43-101 ("NI 43-101").

"This current mineral resource estimate significantly surpassed our internal growth expectations for both Measured and Indicated plus total ounces for these categories, and is a testament to the scale of the deposits at Buritica as well as our team's ability to find and delineate ounces at less than $15 per ounce," commented Ari Sussman, CEO. "With 4.71 million Measured and Indicated gold equivalent ounces, the Company plans to forgo the scheduled updated Preliminary Economic Assessment in H2 2015 and will instead initiate a Feasibility Study, the details of which will be released shortly once the relevant contractors are engaged and scheduling has been finalized."

Continental's 100%-owned, 59,283-hectare project, Buritica, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaragua and Veta Sur systems) are central to this land package. The Yaragua system has been drill-outlined along 1,100 meters of strike and 1,700 vertical meters and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,000+ meters of strike and 1,800 vertical meters and has been partially sampled in underground developments. 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. This press release outlines updated mineral resource estimates for the Yaragua and Veta Sur systems, superse ding the 2014 Estimate.

Informing samples consisted of vein composites within domains and one composite sample across each vein intercept. The estimation grid size was 8 meters in X and Y with vein thicknesses (horizontal widths) and gold, silver and zinc grades estimated in 2D unfolded space using Ordinary Krige ("OK") estimation of their width. The informing sample grades were capped on a vein domain or sub-domain basis as determined by geostatistical analysis. However, where blocks are within 25 meters of a capped value, a hybrid estimate was used - being a combination of the capped and uncapped estimate weighted by a binary indicator. A maximum of eight informing samples are used to estimate a block. Within the tightly-constrained vein domains, high-grade and low-grade sub-domains were outlined, using a 2-meter(i)grams gold boundary with at least three samples within that boundary. Results of the Krige estimation were validated against raw data statistics. Trend analysis was made against the informing samples and check estimates done using Inverse Distance Squared (IDS) and Nearest Neighbor (NN) (Polygonal) estimation techniques. The results (Figure 2) are generally in good agreement with the Krige estimates and grade patterns, highlighting the importance of the sub-domaining in minimizing grade "smearing" where data density was low. As expected, IDS estimates slightly higher grades and lower tonnes than OK, whereas NN estimates higher grades and lower tonnes.

The halo zone on each side of the vein for up to 2 meters in distance was also estimated along with the vein in 2D unfolded space. Informing samples were selected separately for the hanging wall and footwall for each vein. Estimation parameters were the same as for that vein. For the dilution to a minimum width of 1 meter, the halo material was selected from the better grade side. The remainder of the halo was unfolded and included in the 3D model to allow for estimation of mining design and dilution.

Results of the 2D estimation for each vein domain were combined to a normal 3D block model with sub-block size of 1 meter (E) by 0.3 meters (N) by 1 meter (RL). The model was then screened for topography and existing workings. The number of informing samples, presence of underground development or mining, clustering of data, distance to nearest informing sample and Conditional Bias Slope from the OK estimate were used by the Qualified Person to digitize contiguous areas defining mineral resource categories in long-section.

These mineral resource estimates for the Veta Sur vein system are contained in 38 vein domains with average strike extents of 575 meters and average depths extents of 990 meters (Figure 1) within more extensive vein envelopes, up to 1,140-metre strike length and 1,600-metre vertical extents. As well as significant vein extensions to the southwest and to depth, additional vein domains were outlined to the north of the 2014 mineral resource envelope. Most of the modeled veins are open at depth and along strike to the southwest. Vein domains average 1.1 meters (diluted) horizontal width.

The current mineral resource estimates for Veta Sur represents a significant increase in both tonnage and grades compared to the 2014 Estimate. M&I increased by 65% and M&I grades are higher than the 2014 Estimate (12.6 g/t gold and 13.3 g/t AuEq versus 10.9 g/t gold and 11.6 g/t AuEq=Au+Ag/50), largely reflecting successful infill drilling. The tonnage of Measured resources is slightly higher but the Measured grades and contained ounces are lower in the current estimate relative to the 2014 Estimate, largely due to depletion at very high grades of material mined in Veta Sur development.

Inferred Resources in Veta Sur are up 96% and Inferred grades are higher than the 2014 Estimate (8.9 g/t gold and 9.4 g/t AuEq versus 6.6 g/t gold and 7.1 g/t AuEq=Au+Ag/50), reflecting successful step-out drilling. Even though the Veta Sur vein system has significantly grown in all mineral resource categories, there are areas where sparse drilling did not satisfy the minimum criteria for Inferred Resources, leaving potential upside growth in the future.

Mineral resource growth and the increased proportion of higher confidence (M&I) resources reflect a 73% increase in the number of composites defining the vein domains in Veta Sur, primarily resulting from 2014-2015 drilling.

These mineral resource estimates for the Yaragua vein system are contained in 51 vein domains containing mineral resources above 3 g/t gold cut-off grade with average strike extents of 470 meters and average depth extents of 910 meters within more extensive vein envelopes, up to 1,125 meters strike length and 1,540 meter vertical extents. As well as vein extensions, additional vein domains were outlined to the north and south of the 2014 Estimate and additional veins were added in central and eastern Yaragua. Most of the modeled veins are open to depth and along strike to the west. Vein domains average 1.1 meters (diluted) horizontal width.

M&I increased by 57% and M&I grades are comparable with the 2014 Estimate (9.8 g/t gold and 10.3 g/t AuEq versus 10.0 g/t gold and 10.6 g/t AuEq=Au+Ag/50), largely reflecting successful infill drilling. Gold and gold equivalent grades of measured resources are slightly higher but tonnages were down in this category due largely to current and historical mining depletion in 2015 relative to 2014 estimates.

Although Inferred Resources in Yaragua decreased by 18% versus the 2014 Estimate, the grades are higher (9.1 g/t gold and 9.6 g/t AuEq versus 6.6 g/t gold and 7.1 g/t AuEq=Au+Ag/50). The decline in Inferred resources reflected successful conversion to Indicated resources, largely from infill drilling results. Step-out drilling results were largely responsible for the increased grades of Inferred mineral resources in the current estimate. Although the Yaragua system was extended in 2014-2015, some areas of sparse drilling did not satisfy the criteria for inclusion to Inferred resources, leaving potential growth upside for future drill testing.

Mineral resource growth and the increased proportion of higher confidence (M&I) resources reflect a 44% increase in the number of composites defining the vein domains in Yaragua, primarily resulting from 2014-2015 drilling and channel sampling.

The 2015 mineral resource estimate represents significant increases in M&I resources and Inferred resources of gold, silver and zinc compared to the 2014 Estimate, reflecting higher estimated tonnages and increased grades.

illustrates the substantial growth in Buritica gold resources from 2011 (the first mineral resource estimate) to the current estimate. This growth has been coupled with significant increases in M&I (essentially Indicated) resources and also increased proportions of this higher confidence mineral resource category. Despite the successful conversion of large tonnages of previously Inferred gold resources to the Indicated category, the precious metal grades in the latter category have increased in the 2015 estimate relative to the 2014 Estimate. Inferred gold resources in the updated estimate also exhibit increased grade over the two previous estimates.

 Measured resources decreased slightly, largely due to current and historical mining depletion. Inferred gold resources grew by approximately 9%, also at higher grades than the 2014 Estimate, reflecting successful step-out drilling. The resulting 51% increase in the number of composites defining the vein domains increased confidence in mineral resource estimations and demonstrate the continuity of the vein domains.

Tonnage-grade estimates were also made of 2-metre wide halos on both sides of vein domains, but are not reported as mineral resources. These estimates were utilized to dilute vein domains to 1-metre horizontal width and will be instrumental in defining potential mining dilution in future economic studies.

Grade-Tonnage charts demonstrate the high-grade nature of the Yaragua and Veta Sur mineral resources over a range of cut-off grades from 0 to 5 g/t gold.

Estimates of tonnage-grade per vertical-meter for the major vein domains demonstrate significant mineral resources over an elevation range of more than 1,000 meters and less variation than the 2014 Estimate.

Precious metal resource growth over the 2011-2015 period has been achieved at all-up exploration costs of less than $15/resource ounce of gold. This figure includes the high proportion of infill drilling in recent years, largely responsible for the increases in higher confidence resources.

80% of the combined Yaragua and Veta Sur gold resources are situated above an elevation of 1,000 meters, including 97% of combined M&I mineral resources.

Potential remains for future mineral resource increases in the Yaragua and Veta Sur vein systems, as most of the vein domains modeled in both Yaragua and Veta Sur are open at depth and to the west. The current mineral resource estimate also excludes a number of vein domains to the south and north for which there was limited drilling as of May 2015.