Sunridge Reports Feasibility Study for Asmara Project, Eritrea on Schedule for Completion Q2 2013; Focus on Early Cash Flow and Lower Initial Capital Costs

Sunridge Gold Corp. (the 'Company?) (SGC:TSX.V/SGCNF:OTCQX) is pleased
provide an update on the Asmara Project Feasibility Study (the 'Study?)
being conducted on the four deposits that make up the Asmara Project,
Eritrea. Sunridge recently announced the closing of a $10,831,690
financing which enables the Company and consultants to maintain work on
the Study at full-speed and complete the work on schedule.

A summary of significant points are as follows:

• 
  The Study was started in April 2012 just prior to the publication of a
  positive Asmara Project prefeasibility study (PFS) that showed that
  all four deposits could be processed in a single central processing
  plant;
  
• 
  The Study is on schedule to be completed in the second quarter of 2013;
  
• 
  Based on new metallurgical testwork the Study will include early
  mining of the Direct Shipping Ore ('DSO?) from Debarwa and early
  heap-leaching of the surface gold material from the project;
  
• 
  Based on the above, cash-flow is expected a year earlier (2015) than
  presented in the PFS; and
  
• 
  Based on the new operating scenarios, initial capital costs are
  expected to be reduced and overall economics enhanced in the Study
  compared to the PFS.
  

On May 2, 2012 Sunridge announced the results of a prefeasibility study
('PFS?) on the Asmara Project that concluded that the four deposits of
the Asmara Project could be successfully processed in a single
centralized processing plant near the Emba Derho deposit and that this
was the optimum economic scenario. The mining and processing plant would
produce a total of 365,000 tonnes of copper, 812,000 tonnes of zinc,
415,000 ounces of gold and 11 million ounces of silver over a 15.25 year
mine life. The economic analysis in the PFS, using 5-year average metal
prices and a 10% discount rate, showed the project to have a pre-tax net
present value of $555 million and an internal rate of return of 27%.

Based on the positive economics of the PFS, work started in April 2012
to support the Study; this work included drilling for metallurgical
samples on the Emba Derho deposit as well as geotechnical drilling near
the proposed Emba Derho pit and at proposed plant facilities.

Variations to the Prefeasibility Study Plan

As in the PFS, the Study is considering a centralized process plant near
the large Emba Derho deposit using flotation for the recovery of the
base metals. However, in order to enhance economics and reduce project
capital cost requirements, various processing trade-off studies have
shown that early selective mining and shipping of the DSO from the
Debarwa deposit to a smelter as well as early heap-leaching of the known
zones of gold mineralization on the project are feasible and result in
the optimum economic scenario.

Direct Shipping Ore (DSO)

The DSO Zone is located within the supergene copper zone of the Debarwa
deposit and contains 116kt of high grade material at an average grade of
16% copper, 3.0g/t gold and 77.0g/t silver. The DSO zone is located
about 40 meters below the surface and is approximately 140 meters long.
The Study will include a plan to begin mining operations on the Asmara
Project by mining, crushing and direct shipping the DSO material from
Debarwa, which is located about 45km south of the Emba Derho plant site.
The extraction of DSO material early in the project life could provide
early cash flow and reduce initial capital exposure.

The DSO material will be crushed to minus  ? inch and transported to the
port of Massawa for shipping and sale to smelters. This plan for earlier
production was outlined in the feasibility study for a standalone
operation at Debarwa (see news release dated May 14, 2012) however it
was not included in the mining plan outlined in the PFS because
additional metallurgical work was required at that time.

Heap Leach Gold Production

Sunridge has conducted extensive metallurgical test work on the gold
material from the gold oxide caps of the Emba Derho and Debarwa deposits
and the Gupo Gold deposit since completion of the PFS. Test work,
including column tests of gold ores to simulate heap-leach gold
processing, has been completed on each deposit to support heap leach
production with leach results utilizing  ? inch and  ? inch material
demonstrating 51% to 71% gold recovery. The heap-leaching process will
provide Sunridge the opportunity to generate revenue from the precious
metals earlier in the mine life thereby benefitting the project
economics. This is an improvement to the gold processing plan in the PFS
which outlined a Carbon in Pulp (CIP) facility which would have
stockpiled the material from the gold caps and processed it at the end
of the mine life.

The Study is being conducted by Senet (Pty) Ltd. ('Senet?), based in
Johannesburg, South Africa, an internationally respected leader in the
design, engineering and construction of mining projects in Africa. Senet
has extensive experience working in Eritrea on the Bisha Mine Project
for Nevsun Resources Ltd. Senet′s expertise in process plant design and
infrastructure is supported by Snowden, based in Vancouver, Canada on
mine planning and design. Their experience is complemented by Knight
Piesold Ltd. ('KP?) for tailings facility design and waste management
and Blue Coast Metallurgy Ltd ('Blue Coast?) for metallurgical design
and supervision. The Study is focused on Sunridge′s large Emba Derho
copper-zinc-gold-silver volcanogenic-massive-sulphide (VMS) deposit, the
nearby high grade zinc-gold-copper Adi Nefas VMS deposit, the Debarwa
copper-zinc-gold-silver VMS deposit and the Gupo gold deposit all
comprising the Asmara Project.

ENAMCO

As announced on August 20, 2012, the Company has begun negotiations with
the Eritrean National Mining Corporation ('ENAMCO?) for ENAMCO′s
purchase of a 30% working interest in the Asmara Project. On completion
of the purchase, ENAMCO will have a 10% carried interest and a 30%
working interest and will therefore be responsible for funding one-third
of the costs of all operations conducted on the Asmara Project, which
may include a portion of the Study.

Sunridge currently has approximately 174 million shares outstanding and
trades on the TSX Venture Exchange under the symbol SGC. For additional
information on the Company and its projects please view the slide show
on our website at www.sunridgegold.com
or call Greg Davis at the numbers listed below.

Mr. Michael J. Hopley is the Qualified Person who approved the technical
information contained in this news release.

Sunridge Gold Corp.

Greg Davis, VP Business Development

Email: greg@sunridgegold.com

Tel:
604-688-1263 (direct)