Continental Gold Drills High-Grade Gold in the Eastern Yaragua System at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - Feb 5, 2014) - Continental Gold Ltd. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 13 diamond drill-holes and underground sampling from the Yaraguá vein system as part of the Company's 2013 exploration program at the Buriticá project in Antioquia, Colombia. Drilling has recently resumed for 2014 with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories. Assay results presented below represent the final drill-holes that will be included in an updated mineral resource estimate prepared in accordance with National Instrument 43-101 ("NI 43-101") due this quarter.

Highlights (referenced in Figures 1 and 2)

• Ten drill-holes were successful in extending the Yaraguá vein system, whereas drilling and underground sampling infilled vein families in eastern Yaraguá.
• Multiple drill intersections were made to the east, south and to depth of the current NI 43-101 block model for the Yaraguá system. These intersections, covering over 200 metres of lateral and vertical extents, represent extensions of the Yaraguá southern vein families, which remain open to the east and to depth. Significant step-out intercepts include:
  • 36.48 metres @ 9.4 g/t gold and 43 g/t silver, including 1.8 metres @ 34.8 g/t gold and 61 g/t silver plus 2.6 metres @ 36.3 g/t gold and 47 g/t silver (BUUY191, elevation of 1,259 metres);
  • 0.5 metres @ 122.5 g/t gold and 70 g/t silver (BUUY196, elevation of 1,184 metres);
  • 1.20 metres @ 10.8 g/t gold and 279 g/t silver (BUSY181, elevation of 1,339 metres);
  • 1.30 metres @ 8.2 g/t gold and 91 g/t silver (BUUY186, elevation of 1,226 metres);
  • 4.65 metres @ 35.0 g/t gold and 140 g/t silver, including 0.5 metres @ 312.0 g/t gold and 1,250 g/t silver (BUUY192, elevation of 1,232 metres);
  • 0.5 metres @ 51.9 g/t gold and 41 g/t silver (BUUY200, elevation of 1,263 metres);
  • 1.5 metres @ 20.2 g/t gold and 84 g/t silver (BUUY160, elevation of 1,311 metres);
  • 1.35 metres @ 142.9 g/t gold and 15 g/t silver (BUUY171, elevation of 1,324 metres); and
  • 1.0 metres @ 10.8 g/t gold and 9 g/t silver (BUUY205, elevation of 1,349 metres).
• Channel sampling in the new Yaraguá ramp extended high grades in the Murcielagos South vein family to higher elevations (1,520 metres), with significant intervals including:
  • 0.5 metres @ 24.7 g/t gold, 215 g/t silver and 8.4% zinc; and
  • 1.0 metres @ 10.9 g/t gold, 90 g/t silver and 3.7% zinc.
• Elsewhere, in eastern Yaraguá, infill drilling continued to encounter vein grades and/or thicknesses better than expected from the current Yaraguá mineral resource block model over significant vertical and horizontal extents. In the southern vein families, such intercepts include:
  • 0.5 metres @ 18.7 g/t gold and 24 g/t silver (BUUY191, MU2, elevation of 1,329 metres);
  • 3.35 metres @ 7.6 g/t gold and 4 g/t silver (BUUY196, VNE, elevation of 1,303 metres);
  • 0.5 metres @ 20.1 g/t gold and 1 g/t silver (BUUY196, MU2, elevation of 1,297 metres);
  • 2.85 metres @ 9.9 g/t gold and 8 g/t silver (BUUY186, MU2, elevation of 1,327 metres);
  • 7.4 metres @ 7.0 g/t gold and 36 g/t silver, including 1.25 metres @ 13.2 g/t gold and 102 g/t silver (BUUY192, MU2, elevation of 1,328 metres);
  • 1.4 metres @ 11.5 g/t gold and 205 g/t silver (BUUY192, MUS, elevation of 1,327 metres);
  • 1.4 metres @ 11.6 g/t gold and 424 g/t silver (BUUY192, MUS1, elevation of 1,298 metres);
  • 0.5 metres @ 10.8 g/t gold and 19 g/t silver (BUUY200, MU, elevation of 1,317 metres);
  • 0.55 metres @ 43.4 g/t gold and 266 g/t silver (BUUY201, MU, elevation of 1,494 metres); and
  • 0.5 metres @ 58.9 g/t gold and 117 g/t silver (BUUY199, MU, elevation of 1,161 metres);

and, in the central vein families:

• 3.35 metres @ 7.6 g/t gold and 4 g/t silver (BUUY196, VNE, elevation of 1,303 metres);
• 3.6 metres @ 10 g/t gold and 19 g/t silver (BUUY207, VNE, elevation of 1,491 metres);
• 3.75 metres @ 37.8 g/t gold and 369 g/t silver (BUUY192, VNC, elevation of 1,415 metres);
• 1.0 metres @ 15.7 g/t gold and 30 g/t silver (BUUY199, VNC, elevation of 1,248 metres);
• 0.5 metres @ 43.1 g/t gold and 7 g/t silver (BUUY199, VNB, elevation of 1,236 metres); and
• 10.8 metres @ 11 g/t gold and 26 g/t silver, including 1.6 metres @ 15.7 g/t gold and 84 g/t silver plus 2.3 metres @ 29.8 g/t gold and 52 g/t silver (BUUY199, PRE, elevation of 1,204 metres);

and, in the northern vein families:

• 1.0 metres @ 84.4 g/t gold and 339 g/t silver (BUUY192, SAV, elevation of 1,460 metres); and
• 0.88 metres @ 10.9 g/t gold and 116 g/t silver (BUUY199, HWV, elevation of 1,418 metres).

Details

Continental's 100%-owned, 58,773-hectare project, Buriticá, 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 Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 700 metres of strike and 1,300 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. See "About Continental Gold" below for a précis of mineral resource estimates for the Buriticá project prepared in accordance with NI 43-101. This release documents the results of extension and infill drilling and underground sampling of the eastern Yaraguá system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

To view Figure 1 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/925865_1.pdf

To view Figure 2 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/925865_2.pdf

Table I: Drilling Highlights

Four holes (BUUY191, BUUY196, BUUY181 and BUUY186) were drilled from underground to the southeast to test southern vein families of the eastern-most part of the Yaraguá system. Each of these drill-holes intersected high grades to the east of and/or below the current Yaraguá mineral resource envelope, with intercepts including:

• 36.48 metres @ 9.4 g/t gold and 43 g/t silver, including 1.8 metres @ 34.8 g/t gold and 61 g/t silver plus 2.6 metres @ 36.3 g/t gold and 47 g/t silver (BUUY191, elevation of 1,259 metres);
• 0.5 metres @ 122.5 g/t gold and 70 g/t silver (BUUY196, elevation of 1,184 metres);
• 1.2 metres @ 10.8 g/t gold and 279 g/t silver (BUSY181, elevation of 1,339 metres); and
• 1.3 metres @ 8.2 g/t gold and 91 g/t silver (BUUY186, elevation of 1,226 metres).

These intersections, covering over a 150-metre range of elevations, represent extensions of the Murcielagos and Murcielagos South vein families which remain open to depth and some 50-75 metres further east where they terminate at the Tonusco Fault. The broad width of the intercept in BUUY191 is interpreted to represent the intersection of a Centena-orientation vein set with Murcielagos family veins.

A further four holes (BUUY200, BUUY160, BUUY171 and BUUY205) were drilled to the southwest from the same underground platform and BUUY192 was drilled from further northwest, targeting southern vein families of the Yaraguá system. Each of these drill-holes intersected high grades to the south of the current Yaraguá mineral resource envelope, with intercepts including:

• 4.65 metres @ 35 g/t gold and 140 g/t silver, including 0.5 metres @ 312 g/t gold and 1,250 g/t silver (BUUY192, elevation of 1,232 metres);
• 0.5 metres @ 51.9 g/t gold and 41 g/t silver (BUUY200, elevation of 1,263 metres);
• 1.5 metres @ 20.2 g/t gold and 84 g/t silver (BUUY160, elevation of 1,311 metres);
• 1.35 metres @ 142.9 g/t gold and 15 g/t silver (BUUY171, elevation of 1,324 metres); and
• 1.0 metres @ 10.8 g/t gold and 9 g/t silver (BUUY205, elevation of 1,349 metres).

These intersections represent extensions of Murcielagos South vein families which remain open to the east and to depth. The high grades encountered at moderate elevations are encouraging as high grades were also encountered in deeper drilling of the Murcielagos South vein families some 100-150 metres further west of the present drilling.

Channel sampling in the new Yaraguá ramp extended high grades in the southern Murcielagos vein family to higher elevations (1,520 metres) with approximately true width intervals, including:

• 0.5 metres @ 24.7 g/t gold, 215 g/t silver and 8.4% zinc; and
• 1.0 metres @ 10.9 g/t gold, 90 g/t silver and 3.7% zinc.

Elsewhere, in eastern Yaraguá, infill drilling continued to encounter vein grades and/or thicknesses better than expected from the current Yaraguá resource block model. In the southern vein families such intercepts, over vertical and horizontal extents of more than 150 metres include:

• 0.5 metres @ 18.7 g/t gold and 24 g/t silver (BUUY191, MU2, elevation of 1,329 metres);
• 3.35 metres @ 7.6 g/t gold and 4 g/t silver (BUUY196, VNE, elevation of 1,303 metres);
• 0.5 metres @ 20.1 g/t gold and 1 g/t silver (BUUY196, MU2, elevation of 1,297 metres);
• 2.85 metres @ 9.9 g/t gold and 8 g/t silver (BUUY186, MU2, elevation of 1,327 metres);
• 7.4 metres @ 7 g/t gold and 36 g/t silver, including 1.25 metres @ 13.2 g/t gold and 102 g/t silver (BUUY192, MU2, elevation of 1,328 metres);
• 1.4 metres @ 11.5 g/t gold and 205 g/t silver (BUUY192, MUS, elevation of 1,327 metres);
• 1.4 metres @ 11.6 g/t gold and 424 g/t silver (BUUY192, MUS1, elevation of 1,298 metres);
• 0.5 metres @ 10.8 g/t gold and 19 g/t silver (BUUY200, MU, elevation of 1,317 metres);
• 0.55 metres @ 43.4 g/t gold and 266 g/t silver (BUUY201, MU, elevation of 1,494 metres); and
• 0.5 metres @ 58.9 g/t gold and 117 g/t silver (BUUY199, MU, elevation of 1,161 metres);

and in the central Yaraguá vein families, intercepts, through extents of 200 vertical metres and 150 horizontal metres, include:

• 3.35 metres @ 7.6 g/t gold and 4 g/t silver (BUUY196, VNE, elevation of 1,303 metres);
• 3.6 metres @ 10 g/t gold and 19 g/t silver, including 1.2 metres @ 22.3 g/t gold and 27 g/t silver (BUUY207, VNE, elevation of 1,491 metres);
• 3.75 metres @ 37.8 g/t gold and 369 g/t silver (BUUY192, VNC, elevation of 1,415 metres);
• 1.0 metres @ 15.7 g/t gold and 30 g/t silver (BUUY199, VNC, elevation of 1,248 metres);
• 0.5 metres @ 43.1 g/t gold and 7 g/t silver (BUUY199, VNB, elevation of 1,236 metres); and
• 10.8 metres @ 11 g/t gold and 26 g/t silver, including 1.6 metres @ 15.7 g/t gold and 84 g/t silver plus 2.3 metres @ 29.8 g/t gold and 52 g/t silver (BUUY199, PRE, elevation of 1,204 metres);

and, in the northern vein families:

• 1.0 metres @ 84.4 g/t gold and 339 g/t silver (BUUY192, SAV, elevation of 1,460 metres); and
• 0.88 metres @ 10.9 g/t gold and 116 g/t silver (BUUY199, HWV, elevation of 1,418 metres).

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia, whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Ltd. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc.

In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. A Phase V drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.

Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, timing of an updated mineral resource estimate and exploration and mine development plans, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Specific reference is made to the most Annual Information Form on file with Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources", "indicated mineral resources", "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource", "measured mineral resources", "indicated mineral resources", and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.