Compass Gold Encounters Further Gold Mineralization from Exploration Program on Yanfolila Property, Southern Mali

• Review of all the inclined diamond and vertical auger drilling data received to date indicates the existence of a large gold system at the Solona target on the Yanfolila property
• Current field work program completed on July 15, 2012 with 4,530m of diamond drilling (36 holes) and 5,088m of auger drilling (290 holes)
• Visual description of core shows deep level of oxidation with soft material extending to a vertical depth of 80m, followed by a soft, partially oxidized material in a transition zone to 160m. Fresh rock starts only below a vertical depth of 160m
• Fire assay results received for the final 24 holes of diamond drilling over the Solona target with 15 of these holes encountering gold mineralization at various depths, with best intersections being:
• SD48: 6.30m @ 2.15g/t between 25.20m and 31.50m, including 1.96m @6.19g/t between 25.20m and 27.16m;
• SD50: 3.95m @ 2.73g/t between 9.05m, and 13.00m, including 1.00m @9.16g/t between 10.00m and 11.00m;
• SD50: 6.80m @ 1.15g/t between 64.32m and 71.12m;
• SD51: 4.65m @ 2.54g/t between 40.00m and 44.65m;
• SD67: 6.70m @1.87g/t between 129.00m and 135.70m, including 2.70m @ 3.17g/t between 131.10m and 133.80m;
• Results from auger drilling to a depth of 21m in two new areas confirm a further extension of the mineralization over the Solona target as follows:
• To the north and south over a 3km strike length, with mineralization open at both ends. Further assays are expected in October for drilling beyond the 3km strike length;
• To the northwest in a parallel structure mineralization over a one km strike length
• Results are very encouraging, confirming system structure and its persistence at depth, allowing Compass to plan the next phase exploration program aimed at defining an NI43-101-compliant inferred resource in 2013 on the Solona target.

VANCOUVER, Oct. 1, 2012 /CNW/ - Compass Gold Corporation (TSXV: CVB), which is focused on gold exploration on four properties in Mali, Africa's third-largest gold producer, today announced that it has encountered further gold mineralization in an additional 15 holes drilled as a part of its diamond- and auger-drilling programs at its Solona target on its 100% owned Yanfolila property in southern Mali. A review of all the diamond- and auger-drilling data received continues to support the existence of a large and persistent gold mineralized system at the Solona target.

The gold assay results received on 24 diamond-drilled and 290 auger-drilled holes support previous encouraging indications of strong gold mineralization at the Solona target. Particularly notable is that mineralization continues at depth below an intensely oxidized zone (see Table 1 below).

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Diamond Drilling
In March 2012, Compass commenced a 3,000m inclined diamond-drill program to test mineralization from surface to a depth of 100m. As a result of positive initial results, Compass extended this program to 5,000m. Compass has completed this program with 36 holes (SD41 to SD76) drilled for a total of 4,530m. (See Figure 1 below for the location and azimuth of the drill holes). Compass previously announced in news releases on May 23, June 12, and June 27, 2012 assay results for 12 of the holes that had been drilled. Of these 12 holes, 9 encountered gold mineralization from near surface to 78m inclined along the hole (~65m vertical depth).

Compass has received assay results for the remaining 24 holes. The fire assay results for the 24 holes show gold mineralization in 15 holes from near surface to 135m inclined along the hole (~115m vertical depth). True width is unknown for all intercepts.

Visual description of cores shows a deep level of oxidation, with soft material extending to a vertical depth of 80m, followed by a soft, partially-oxidized material in a transition zone to 160m (vertical depth). Fresh rock starts only below a vertical depth of 160m.

A review of all the diamond and auger drilling data received continues to support the existence of a large gold system at Solona, with gold mineralization present in oxidized and partially-oxidized material and mineralized widths such as 22.50m @4.15g/t (diamond drill hole SD 57) and an average gold grade as high as 88.77 g/t (averaged over 3 separate assays for the intercept) in diamond drill hole SD32 (6m@15.61g/t with uncut values including 1m at average 88.77g/t and with cut high grades, 6.00m @6.95g/t with high value cut to 30g/t¹).

The newly received assay results demonstrate also the presence of gold mineralization at greater depth (diamond drill hole SD67: 6.70m @1.87g/t between 129.00m and 135.70m along the hole (~115m vertical).

Details of the mineralized interceptions are set out in Table 1 and Figure 1 below. Full drill results are given in Appendix A.

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1} Compass geologists have recalculated these previously reported intercepts following the receipt of check assays, and report ass per the protocols presented in Footnote 2 on page 2.

Auger drilling - New Programs
Compass has completed 252 holes of shallow auger drilling (4,418 m) at Solona in the area to the west and northwest of the diamond-drilled tested area, as shown in Figure 2 below. The objective of this program was to extend the area previously tested by diamond drilling.

Results received to date are very encouraging and show the pervasive presence of anomalous gold mineralization near surface with gold grades from 0.11g/t to 6 g/t at depths varying from surface to 19.50m. These results, set out in Appendix B below, significantly extend the areas to be drill tested at Solona.

The 700m diamond drill tested area was extended for a further 3,000m along strike to the north, and remains open. To the south, the diamond drill tested area has been extended for another 2,000m and remains open. A parallel structure some two km to the northwest has confirmed an isometric mineralization. Assay results for another parallel structure just west of the diamond-drill-tested area are pending.

Mineralized structures for future drill testing defined by the auger drilling are shown on Figure 2.

Future Program
Work completed on the Solona target (soil geochemistry, mapping, geophysics, and auger and diamond drilling) has confirmed the presence of a gold mineralized system. The presence of high-grade gold (from trace to over 2g/t) in wide intersections (up to +15m) is very encouraging.

"We are very pleased with the work completed during the 2012 field season," stated James Henderson, Compass' President and Chief Executive Officer. "Results received to date are very encouraging as they continue to meet our expectations with respect to confirming gold mineralization continues at depth below the oxidized zone; together with new results which confirm near-surface anomalous gold mineralization over two large new areas to the west and northwest of the Solona system that we have tested to date. These results confirm the structure of the mineralized system and, we are in the process of analyzing further results from the completed drill programs, together with other data. This will assist in planning the extensive follow-up exploration program to commence later this year with the aim to define a NI 43-101 compliant resource in 2013."

Yanfolila Diamond Drilling Sampling Protocols
The diamond-drill program at the Solona target, Yanfolila permit was carried out by ULC (Uranium Logging and Consulting), using a LONGYYEAR DB 525 wire-line diamond-core drill rig and HQ-size rods. All holes are started and finished in saprolitic or weathered materials in headquarters. Each core was split using a stainless steel knife (as the core is mainly clay material). One half of the core was kept in the core box and stored in a covered and secure core shed. Core samples are collected in plastic bags, numbered outside, and a tag is placed inside the bag. All samples are taken from site by Africa Mining personnel and delivered to the ALS laboratory, Bamako, Mali, under secure ''chain-of-custody'' procedures. Samples are fine-crushed to 70% <2mm, pulverized, and split to 85 %< 75um. Gold is assayed by fire assay (50g charge) with FA AA Finish. Sample pulp is returned from the ALS laboratory under secure ''chain-of-custody'' procedure by Africa Mining staff and also stored in a secure location.

Auger Drilling Sampling Protocols
The auger-drill program at the Yanfolila target, Yanfolila permit, was carried out by M-Consulting, using an APAFOR 450 multipurpose rig and 63mm size rods. All holes are started and finished in saprolitic materials. Each sample is 1.5m long (length of the rod), homogenized on site and split to obtain a 2 to 3kg laboratory sample. Auger samples are then collected in plastic bags, numbered outside and a tag is placed inside the bag. All samples are taken from site by Africa Mining personnel and delivered to the ALS laboratory, Bamako, or SGS Morila, Mali, under secure ''chain-of-custody'' procedures. Samples are fine crushed to 70% <2mm, pulverized and split to 85 %< 75um. Gold is assayed by fire assay (50g charge) with FA AA Finish. Sample pulp is returned from the ALS or SGS laboratories under secure ''chain-of-custody'' procedure by Africa Mining staff and also stored in a secure location.

Qualified Person
Malcolm A Carson, BSc Geo, MSc Nat Res. Mgt., MAIG is the "qualified person" within the meaning of National Instrument 43-101, that has reviewed and approved the scientific and technical information contained in this news release, including verification of sampling procedures, the assaying procedures of ALS Laboratory, and "chain-of-custody" procedures.

About Compass Gold
Compass Gold Corporation, a Tier 2 mining issuer listed on the TSX Venture Exchange, is focused on gold exploration in Mali, Africa's third-largest producer of gold. Compass, through its wholly owned subsidiary, Africa Mining SARL, owns a 100% interest in four gold exploration permits (Yanfolila, Dandoko, Kolondieba, and Solabougouda) in southern Mali, as well as holding applications over a further four areas, Mousala, Sirakourou, Yanfolila East, and Kolondieba Nord) covering an aggregate of 1,138 sq kms in key gold-producing regions in southwest Mali, West Africa. Further information is available at www.compassgoldcorp.com.

Forward-Looking Information
This news release includes "forward-looking statements" including forecasts, estimates, expectations, and objectives for future operations that are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of Compass Gold Corporation. Statements regarding expectations and interpretation of drilling results at Yanfolila's Solona target being associated with gold mineralization and defining a NI43-101-compliant gold resource are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including technical, operational, and environmental risks associated with gold exploration, including, but not limited to, successfully identifying and drilling gold mineralization, completion of final assaying of all drill holes, and the accuracy of the technical evaluation of such results which cannot be relied upon until final verified independent results are reviewed by Compass. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Risks and uncertainties about Compass Gold's business are more fully discussed in the company's disclosure materials, including its MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Compass Gold Corporation does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSX Venture Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.

COMPASS GOLD CORPORATION

"James Henderson"

James Henderson, President

SOURCE Compass Gold Corporation

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