Continental Gold announces that it has been informed by the Colombian Government that a major joint operation between the National Government of Colombia, State Government of Antioquia and Municipal Government of Buriticá is underway to permanently close illegal mines and processing plants operating within the Company's exploitation and exploration licenses covering the Buriticá project.

The intervention is a direct result of the National Government’s initiative to eliminate illegal mining, through which there have been several similar interventions recently in other parts of the country.

It also reflects the newly-elected (January 1, 2016) State Government of Antioquia’s full alignment with the National Government’s agenda to support legal, private sector mining as well as the formalization of small-scale local traditional miners.

These efforts respond as well to the January 20, 2016 Resolution No. VSC-055 issued by the National Mining Association of Colombia (ANM) in which illegal mines at Buriticá were ordered to be permanently closed, due to significant safety concerns generated by unsafe and non-technical practices.

The Company is, as always, fully cooperating with the national, regional and municipal authorities, operating within the framework of Colombian Law and international standards and providing support and available resources to the community of Buriticá.

In addition, although these activities are taking place at a safe distance from the Company’s current small-scale mine and future infrastructure site, extra precautions are being taken to ensure the safety of all Company employees and contractors during the intervention.

With significant intervention-related activity anticipated in the coming days, the potential for media attention is elevated and, as a result, shareholders are urged to contact the Company directly with any queries.

The Company expects that the current operation by the Colombian authorities will pave the way for increased territorial control by the government in the region.

The increased control, in conjunction with the substantial investment currently being made in the economic and social development of the region and in key environmental conservation initiatives by the Company, strategic non-government organizations, the government and the private sector, will further strengthen the process of permitting, constructing and operating a mine at the Company’s multi-million ounce high-grade Buriticá project.

Continental Gold is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia.

Formed in April 2007, the Company — led by an international management team with a successful track record of discovering and developing large high-grade gold deposits in Latin America — is focused on advancing its high-grade Buriticá gold project to production.