Columbus Gold Announces Positive PEA Results on Montagne d'Or Gold Deposit; Production of 273,000 Oz/yr and AISC of US$711/Oz

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 8, 2015) - Columbus Gold Corp. (TSX VENTURE:CGT)(OTCQX:CBGDF) ("Columbus Gold") is pleased to announce the results of the NI 43-101 compliant, Preliminary Economic Assessment ("PEA") at the Montagne d'Or gold deposit, Paul Isnard Project, French Guiana, conducted by SRK Consulting (U.S.), Inc.

Montagne d'Or PEA Highlights

• After-tax NPV (at 8%) of US$324 Million
• After-tax IRR of 23%, at a gold price of US$1200 per ounce ("Oz")
• Initial Capital Cost of US$366M, including US$44M contingency
• All-in Sustaining Costs ("AISC") of US$711/Oz
• Life of Mine ("LOM") Production of 3.05 million ounces
• Average Annual Gold Production 273,000 Oz in years 1-10
• Milling Capacity of 12,500 tonnes per day, with an average gold grade 2.0 g/t in years 1-10

Robert Giustra, Chairman & CEO of Columbus Gold, commented: "The advancement of the Montagne d'Or Gold Deposit to the PEA stage achieves a significant milestone that clearly indicates the potential to develop a low CAPEX gold deposit with scale and good grade, at below industry average cash costs." Mr. Robert Giustra further stated: "The Montagne d'Or PEA is planned to deliver a solid average grade of 2 g/t over a 10 year production period, and with additional drilling and continued refinement of operating costs, including various energy proposals in the upcoming feasibility study, a potential reduction in overall costs may be possible."

Analysis

The Montagne d'Or deposit could potentially support an open pit mine with conventional carbon-in-leach (CIL) processing technology, and with a moderate strip ratio of 5:1 waste/ore. While the PEA allows for inclusion of Inferred Mineral Resources, more than 94% of in-pit resources are in the Indicated Mineral Resource category. The processing plant, with an annual capacity of 4.5 Mtpa, will include three stage crushing, ball milling, gravity gold recovery circuit, 9 CIL tanks, and cyanide detoxification circuit. Gold recovery in the plant is anticipated to exceed 94%, and processing of lower-grade stockpiles is scheduled for years 12 to 13.

The PEA utilizes power supply from on-site generation at a cost of US$0.20/kWh as the base case, however a connection to the power grid located 125 km away at the port of Saint-Laurent-du-Maroni would reduce the cost to US$0.11/kWh. This option is currently at an advanced stage of study. Due to a low Ball Mill Work Index of only 12 kWh/t, the mine is anticipated as having competitive processing cost in either power supply scenario.

Outlook

Columbus Gold intends to start the Feasibility Study (FS) in Q3 2015 and targets completion in Q4 2016. The Preliminary Environmental and Social Impact Assessment (ESIA) and terms of references have been completed, and delivery of the Final ESIA is anticipated by Q4 2016.

The FS work is being funded by Nord Gold N.V. (LSE:NORD LI) as part of a minimum US$30 million exploration and development program pursuant to which they can earn a 50.01% interest in Montagne d'Or and the Paul Isnard mineral titles. Earn-in also includes completing a Feasibility Study no later than March, 2017. Spending in 2014 was $16 million, and is budgeted at US$10 million for 2015 which will include in-fill drilling to increase confidence in the resource and conversion of the Indicated resources to the Measured category, condemnation drilling of the proposed infrastructure sites, geotechnical and hydrogeological investigations, and advanced metallurgical test work to support processing plant design.

The complete report is available on SEDAR (www.sedar.com) and on Columbus Gold's website at:

www.columbusgold.com/i/nr/2015-07-08-pea.pdf

Bret Swanson and Bart Stryhas of SRK Consulting (U.S.), Inc. of Denver, CO who are both "Independent Qualified Persons" as defined by NI 43-101, have reviewed this press release.

ON BEHALF OF THE BOARD,

Robert F. Giustra, Chairman & CEO

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.

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting a new 43-101-compliant report being completed by SRK; that the new 43-101-compliant report will be completed and filed on SEDAR within 45 days; the growth potential of the deposit; completion of the PEA; projected funding of exploration and development programs by Nord Gold N.V. pursuant to the terms of the option agreement and the related completion of a bankable feasibility study ("BFS"). Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation: whether a new 43-101-compliant report will be completed by SRK; whether the new 43-101-compliant report will be completed and filed on SEDAR within 45 days; the ability to complete the PEA by the proposed target date or at all; risks associated with Nord Gold N.V. electing not to exercise its option and make the related option payments and the ability to complete the BFS by the stated deadline or at all; cost increases; availability of qualified workers and drill equipment; access to power supply sources and power prices; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions: that the conclusions provided by SRK and reported herein are accurate and that a new 43-101-compliant report will be able to be provided within the target timeframe or at all; general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; that political risk will remain on current levels; and ongoing relations with employees, partners and joint venturers. Although Columbus Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Columbus Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact

Brokerage/Retail:
Todd Hanas
Investor Relations
(866) 869-8072
todd@columbusgroup.com
Institutional/Analysts:
Peter A. Ball
Senior Vice President
(604) 634-0973
peter@columbusgroup.com
Media/Communications:
Jorge Martinez
VP Communications & Technology
(604) 634-0972
jorge@columbusgroup.com
www.columbusgold.com