Bruner Project Receives Subsurface Water Right

LAS VEGAS, NV - Patriot Gold Corp. reported that its Bruner gold project located in Nye County, Nevada has been granted a subsurface water right by the Nevada Division of Water Resources.

The new water right approval allows for mining purposes for 0.78 cubic feet per second, or 350 gpm (gallons per minute), on the west side of the Bruner property. Combined with the 0.10 cubic feet per second (50 gpm) from the patented ground and the well location on the east side of the property, there is a total of 400 gpm beneficial use for mining purposes and sufficient water for development of up to an 8,000 tpd initial heap leach operation. In order to fully exercise the water right, a well at the permitted location must be completed by December 30, 2016, and then placed into beneficial use by December 30, 2017.

"Being granted sufficient water rights is a significant step in the development plan of the Bruner project and an eventual heap leach operation," said Bob Coale, CEO of Patriot Gold. "As we continue to explore and develop the Bruner gold project, we find that the magnitude and value of the discovery keeps expanding. We are pleased with operations to-date and look forward to another year of exciting advancements."

Patriot Gold owns 100% undivided rights, title and interest in the project which is subject to certain royalties and an earn-in option agreement for 70% interest. The earn-in optioned/operator, Canamex Resources Corp. has the right to earn 70% interest in the Bruner project by spending $6 million over seven years and may earn an additional 5% by completing a bankable feasibility study for a total of 75% interest in the project. Subsequent to the optioned/operator earn-in, financing of the project will be on a proportional basis.

Patriot Gold currently holds a portfolio of three projects: two in Nevada (Bruner and Vernal), and the third in Arizona, which is its flagship Moss project.