SolidusGold Reports on Preliminary Economic Assessment for the Wind Mountain Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 12, 2015) - SolidusGold Inc. ("SolidusGold" or the "Company") (TSX VENTURE:SDC) is pleased to report on its recently filed technical report for the Wind Mountain gold and silver property in Nevada.

The report, entitled "Technical Report and Preliminary Economic Assessment, Wind Mountain Gold-Silver Project, Washoe County, Nevada" dated December 24, 2014 and prepared by Mine Development Associates Inc. ("MDA"), (the "Report"), is available on the Company's profile at www.sedar.com.

Solidus' Interim CEO, Steven Khan, commented "We are very pleased with the current PEA, which confirms our belief that the Wind Mountain project provides significant value and opportunity to our shareholders. We look forward to advancing the project under the recommendations of the Report".

The Wind Mountain Project is a past producing heap leach low-sulphidation-type gold and silver property consisting of 150 claims totaling approximately 1,147 hectares located within the highly prospective Walker Lane Gold trend approximately 160 kilometres northeast of Reno, Nevada, with good road access and power. The Company holds an option to acquire a 100% interest in the Wind Mountain Project from Bravada Gold Corp. ("Bravada").

Table 1 below presents the Indicated and Inferred Wind Mountain diluted resources. The oxide resource is reported at a cutoff of 0.005oz Au/T. The unoxidized and mixed zones are reported at a cutoff of 0.010oz Au/T based on the presumption that recoveries will be lower in the unoxidized material.

Table 1 Gold and Silver Resources for Wind Mountain

In addition to the estimated and reported resources listed above, there are four mine dumps that contain a total of about 10 million tons of material. The dumps have variable amounts of sampling. All of the sampling indicates the dumps could average between 0.005oz Au/T and 0.013oz Au/T. Although there are currently insufficient data to estimate grades spatially, and there is a potential sample-selection bias, MDA is optimistic that with further drilling and sampling much of these dumps' grade and tons could be quantified for economic evaluation.

In May 2012, MDA completed a Preliminary Economic Assessment for Bravada Gold (the "2012 PEA"). The 2012 PEA used gold and silver prices and cost assumptions current at the time of the evaluation. Changes in metal prices and cost assumptions since the effective date of the 2012 PEA do not have a material effect on the conclusions of the current Preliminary Economic Assessment ("PEA"), and all other assumptions and projections of the 2012 PEA continue to be appropriate as at September 30, 2014, the Effective Date of the Report.

The PEA assumes open-pit mining using conventional trucks and shovels and run-of-mine leaching of the Indicated and Inferred resources summarized in the following table:

Table 2 In-pit PEA Resources

A gold price of $1,300 per ounce and a silver price of $24.42 per ounce were used for the economic evaluation. The PEA assumes that all material sent to run-of-mine ("ROM") leach pads is amenable to heap leaching. Economic highlights include:

• Undiscounted life-of-mine pre-tax cash flow of US$63.3 million and US$42.2 million after-tax;
  
  
• Net present value (5% discount rate) pre-tax of US$42.9 million and US$26.5 after-tax;
  
  
• Pre-tax internal rate of return of 29% and 21% after-tax;
  
  
• Payback period of 2.24 years on a pre-tax basis and 3.3 years after-tax;
  
  
• The estimated pre-production capital cost of the mine is $45.4 million;
  
  
• Life-of-mine cash cost of $859 per equivalent ounce of gold (includes silver as a credit and Nevada net proceeds tax and royalties as costs, but does not include corporate income tax);
  
  
• Total pre-tax cost of $1,080 per equivalent ounce of gold (includes silver as a credit and Nevada net proceeds tax and royalties as costs, but does not include corporate income tax);
  
  
• Strip ratio is 0.71 tons of waste for each ton of leachable material; and
  
  
• 288,000 ounces of gold and 1,680,000 ounces of silver are recovered (320,000 gold equivalent).
  
  

(Note that a preliminary economic assessment is preliminary in nature and it includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.)

Economic Parameters and Assumptions

The mine and process production schedules were used along with the economic parameters to estimate the project cash-flow. The base case cash-flow assumes $1,300/oz Au and $24.42/oz Ag for revenue. The Agnico-Eagle royalty is assumed to be bought down to 1% NSR; however, the Fuller royalty is paid at the rate of 3% NSR due to the smaller amount of gold and silver ounces produced from the royalty area.

Nevada proceeds tax has been included into the operating costs. Deductions for exploration and acquisition costs are made on a straight-line 5-year basis. Capital expenditures are also depreciated on a 5-year basis. Corporate taxes are calculated assuming a 34% rate.

Conclusions and Recommendations

The Report concludes that the Wind Mountain property is a property of merit and warrants additional exploration as well as economic studies. The project location and infrastructure are favorable for mine development, and should the project advance through feasibility with positive results, improvements to necessary infrastructure (power, water, access, housing, etc.) should be reasonably inexpensive. There are no known environmental, social, or logistical impediments to developing a mine at Wind Mountain.

The PEA recommends a two Phase work program. Phase I proposes an expansion and in-fill drill program, potentially connecting the Breeze, Deep Min and Wind resources, and thereby possibly expanding the current PEA pit. Also in Phase I, a drill program is planned to follow up on the Connector target. Phase II plans include cyanide shaker tests, metallurgical and modeling studies, collection of baseline data in the proposed heap leach facility area, geotechnical and hydrology studies, drilling of historic waste dumps and a prefeasibility study.

The technical contents of this release relating to the Report have been reviewed and approved by Steven Ristorcelli, C.P.G. and Thomas L. Dyer, P.E., the Qualified Persons responsible for preparation of the Report, each of whom have verified the data and are independent of the Company. Kenneth Collison, a director of the Company, is a Qualified Person for the purposes of National Instrument 43-101 and has also reviewed and approved the information of a scientific and technical nature contained in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding the PEA: The preliminary economic assessment contained in the Report is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are encouraged to read the Report, which can be viewed under the Company's profile at www.sedar.com.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release, including statements regarding the Company's plans for the Wind Mountain Project, resource estimates and the PEA, including estimates of costs, anticipated internal rates of return, mine production, recoveries, cash flows, payback period and net present values, constitute "forward-looking statements" within the meaning of Canadian securities legislation.

In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any government or other regulatory approvals and any financing required to complete the Company's planned exploration and development activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, that the Company's exploration and development activities on the Wind Mountain Project will not be affected by actions of environmental activists or other special interest groups, that actual results of exploration activities are consistent with management's expectations, that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, the other factors and assumptions set out in the Report, that the assumptions underlying mineral resource estimates are valid and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur.

However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Company's operation as a mineral exploration and development company and the Wind Mountain Project that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining or inability to obtain required government or other regulatory approvals or financing, interference with the Company's exploration or development activities by environmental activists or other special interest groups, inability to procure equipment and supplies in sufficient quantities and on a timely basis, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents and labor disputes and unanticipated delays in obtaining governmental approvals and completing other development activities, the risk that estimated costs will be higher than anticipated, the risk that the proposed mine plan and recoveries will not be achieved and the risks disclosed in the Report.

There can be no assurance that the forward-looking statements in this release will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.