Reunion Gold Provides New Drilling Results on its Matthews Ridge Manganese Project

LONGUEUIL, July 18, 2012 - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion or the "Company") is pleased to provide an update on its exploration activities at the Matthews Ridge manganese project in Guyana, South America.

The Company has completed a total of 45,351 meters of diamond drilling in 701 holes and 17,361 meters of reverse circulation drilling in 283 holes. The average length of all holes drilled so far is 64 meters. There are currently three diamond drill rigs working at the project.

Reunion has to date received complete assay results from 513 drill holes, of which 449 were previously released. Results from 64 diamond drill holes and one reverse circulation drill holes completed in 2012 are reported in this press release. Highlights of the most significant assay results are presented in Table 1. Refer to Appendix 1 for complete new results.


Table 1 (1)

Hole 	Target
hill 		Total
length (m) 	Manganese intersection 	Grade Mn
(%)
From (m) 	To (m) 		Length (m)
Diamond drill holes
11MR0016 	H9W 		67.50 	9.00 	34.50 		25.50 	13.40
11MR0170 	H6 		41.00 	0.00 	20.00 		20.00 	17.02
11MR0205 	H9W 		57.50 	0.00 	21.50 		21.50 	15.92
11MR0235 	H9E 		83.00 	26.00 	44.50 		18.50 	15.64
11MR1074 	H9N 		50.60 	0.00 	20.30 		20.30 	12.18
11MR1088 	H9C 		54.20 	15.30 	46.40 		31.10 	20.27
11MR1093 	H9C 		57.90 	6.10 	32.40 		26.30 	12.49
11MR1094 	H9C 		76.10 	12.30 	45.20 		32.90 	15.39
11MR1098 	H9C 		65.90 	0.00 	32.90 		32.90 	12.57
11MR1121 	H9E 		73.60 	0.00 	18.60 		18.60 	14.87
11MR1123 	H9E 		71.30 	14.55 	59.20 		44.65 	12.25
11MR1133 	H9E 		63.30 	24.20 	48.20 		24.00 	14.84
11MR1135 	H9E 		56.90 	10.60 	30.60 		20.00 	13.70
11MR2005 	H5E 		95.40 	1.00 	19.10 		18.10 	12.49
11MR2009 	H5E 		80.10 	34.10 	63.80 		29.70 	14.84
11MR2035 	H5C-EXT 		63.70 	33.60 	50.60 		17.00 	12.21
11MR2041 	H5E-EXT 		97.60 	23.70 	45.90 		22.20 	12.04
Reverse circulation drill hole
12MR3280 	H9W 		91.00 	0.00 	25.00 		25.00 	25.71

(1) Minimum intersection length: 14 meters; minimum average grade: 12% Mn; maximum interval dilution: 2 meters

The planned drilling program on all targets between Hills 1 and 9 is expected to be completed at the end of July 2012. The Company will have closed the drill hole-spacing between Hill 5 to Hill 9 to nearly 50 m by 25 m centers, while drill hole spacing for Hills 1 to 4 will be about 50 m by 50 m, thus providing sufficient information on the mineralized bodies for the completion of geological modelling and resource estimation in the second half of 2012. Maps showing the various target hills and location of mineralized zones in relation to the drill holes are provided in Appendix 2.

Drilling results to date continue to indicate an excellent correlation with trench intersections, confirming that mineralization persists regularly throughout the saprolite zone and continues as proto-ore in the fresh rock.

The trenching and drilling programs are designed both to evaluate the previously mined areas and to define the extent and characteristics of known but unexplored mineralized zones. While trenches allow surface sampling and provide good structural information, the drilling program aims at demonstrating the continuity of manganiferrous bodies at depth and their geometry. Drilling is being done to the saprolite-fresh rock interface. The Company intends to define resources only in the saprolitic and detrital materials, which are amenable to simple earth-moving extraction.


Project description

The Matthews Ridge Project consists of four Prospecting Licenses covering an area of 185 km2 located in northwest Guyana, in and around the former Matthews Ridge mine. The Company also holds two Permissions for geological and geophysical surveys for manganese over an area of 19,770 km2 surrounding the four Prospecting Licences. Manganese ore was mined from 1960 to 1968 by Union Carbide and exported via railroad and a fluvial port. Mining was done on five of a series of nine hills extending for 15 km and striking northeastern-southwestern (see Appendix 2).

Manganese mineralization is hosted by the Barama Group sedimentary sequence of Proterozoic age and consists of typical mantle and detrital deposits formed as a result of oxidation and supergene enrichment of manganese-rich sediments under a tropical climate. The mantle deposits are formed by manganese oxide and hydroxide minerals occurring along the crest of hills and are related to the weathered profile, reaching 120 m below surface.


Quality assurance and quality control

Diamond drilling was done using HQ-diameter casing and triple-tube technology to maximize recovery. Half of the core was used for sampling at regular 1.5 m intervals. Reverse circulation drilling was done with 6-inch casing, sampling at every meter and splitting the rock chips once in the field and processing an entire half sample. Standard reference materials, blanks and duplicate samples have been used to control laboratory accuracy and precision. Core sample preparation was done by Activation Laboratories Ltd. and ACME Laboratories at their facilities in Georgetown, comprised of crushing to minus 2 mm and pulverization passing 200 mesh, followed by XRF assays for manganese and other relevant oxides at their laboratories in Canada. Sample preparation and XRF assay of reverse circulation drill samples were done by FILAB Guyana Laboratories on site using the same methodology described above.

Carlos H. Bertoni, P.Geo., a qualified person as defined under the terms of NI 43-101, has verified the data and approved the technical information contained in this press release.


About the Company

Reunion Gold Corporation is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in the Guyana Shield of South America. The Company through its 100% indirectly owned subsidiary Reunion Manganese Inc., has assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District of Guyana. The Company also has the right to acquire a 100% interest in a gold exploration project located in the Lely Mountain area in Eastern Suriname.

Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute, and is in short supply.

Additional information about the Company is available on SEDAR at www.sedar.com and at www.reuniongold.com.


Forward Looking Statements

This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding the results of the exploration activities and interpretation of such results, the nature, potential size and continuity of the mineralization system, the timing and completion of future work programs, mineral resource estimate and geological modelling. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Appendix 1 and 2 are available at the following link:
http://file.marketwire.com/release/Appendix_1_2.pdf

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 press release.



Contact

James Crombie, President and Chief Executive Officer
+1 450.677.2585
+1 450.677.2601 (FAX)
info@reuniongold.com
www.reuniongold.com