Update on Negotiations Between Sunridge Gold and Eritrean Government

Sunridge Gold Corp. (the 'Company? or 'Sunridge?)
(SGC:TSX.V/SGCNF:OTCQX) is pleased to provide an update on the progress
of the negotiations with Eritrean National Mining Corporation ('ENAMCO?)
for ENAMCO to purchase a 30% participating interest in the Company′s
Asmara Project in Eritrea. Talks have been progressing between the two
parties within the framework of the mining code of the country as
defined in the Eritrean Mining Proclamation.

The framework of the negotiations between the parties is summarized as
follows:

• 
  This 30% interest in the Asmara Project to be purchased by ENAMCO is
  in addition to ENAMCO′s existing right to receive a 10% non-assessable
  interest that will be carried to production by the participating
  partners.
  
• 
  ENAMCO′s 10% non-assessable interest will be carried 66?% by Sunridge
  and 33?% by ENAMCO.
  
• 
  The price and terms of the purchase of the participating interest by
  ENAMCO are currently being negotiated.
  
• 
  Once negotiations are concluded, ENAMCO will contribute 33?% of all
  development costs as they are incurred, as well as any other ongoing
  expenditure on the project, including exploration.
  

Michael Hopley, President and CEO of Sunridge commented, 'We are pleased
with the progress of negotiations with ENAMCO so far. We are working
within the understandable and transparent framework outlined in the
Eritrean Mining Proclamation. We hope to conclude the agreement in a
timely manner and look forward to moving into the next phase of
development of the Asmara project with ENAMCO as a partner?.

The Asmara Project consists of four mineral deposits, the Emba Derho,
Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo
gold deposit all located within 40 kilometres of the capital city of
Asmara. The results of a preliminary feasibility study (the 'Study?)
that considered all deposits being processed at a central mill was
announced on May 2, 2012. The Study showed production from the Asmara
Project 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 Study also demonstrated a pre-tax net present value of $555
million at a 10% discount rate and an estimated initial capital cost of
$489 million. Sunridge is currently completing a feasibility study on
the Asmara Project which is planned for completion in early 2013.
Application for a mining license and permitting will follow the
completion of the feasibility study and the social and environmental
impact assessment.

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

About Sunridge:

Sunridge is a mineral exploration and development company focused on the
acquisition, exploration, discovery and development of base and precious
metal deposits on the Asmara Project in Eritrea and exploration
properties in Madagascar. Sunridge currently has approximately
175,162,728 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.

SUNRIDGE GOLD CORP.

'Michael Hopley?

Michael Hopley, President and Chief Executive Officer

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 news release contains forward-looking statements that are based
on the Company′s current expectations and estimates. Forward-looking
statements are frequently characterized by words such as 'plan?,
'expect?, 'project?, 'intend?, 'believe?, 'anticipate?, 'estimate?,
'suggest?, 'indicate? and other similar words or statements that certain
events or conditions 'may? or 'will? occur. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ materially
from estimated or anticipated events or results implied or expressed in
such forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to
be refined; possible variations in ore grade or recovery rates;
accidents, labor disputes and other risks of the mining industry; delays
in negotiating a shareholders′ agreement with ENAMCO and obtaining
governmental approvals or financing; and fluctuations in metal prices.
There may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any intent
or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.
Forward-looking statements are not guarantees of future performance and
accordingly undue reliance should not be put on such statements due to
the inherent uncertainty therein.

To view this press release as a webpage, please click on the following
link:

http://www.usetdas.com/pr/sunridgegolddec172012.htm

Sunridge Gold Corp.

Greg Davis, 604-688-1263 (direct)

VP
Business Development

greg@sunridgegold.com