Coastal Gold Reports Positive Assay Results from Tailings Vibracore Drilling at Hope Brook Gold Project

NI 43-101 Mineral Resource Estimate for Tailings in Progress

TORONTO, ONTARIO -- (Marketwired - Nov 27, 2013) - Coastal Gold Corp. (TSX VENTURE:COD) (OTCQX:COGGF) (FRANKFURT:CY41) (the "Company") reports that it has received assay results from the recently completed tailings vibracore drilling program at its 100% owned Hope Brook Gold Project in southwestern Newfoundland. Both tailings ponds 1 and 2 were tested with complete assay results shown in Table 1 and hole locations with results for gold shown in Figures 1 and 2.


Highlights include:

Tailings Pond 1 (all widths are true thickness)

• 1.73 g Au/t* and 0.12% copper (Cu) over 2.39 metres (m) from Hole P8
• 1.31 g Au/t and 0.18% Cu over 4.20m from Hole P13
• 1.20 g Au/t and 0.15% Cu over 3.55m from Hole P6
• 1.32 g Au/t and 0.13% Cu over 1.17m from Hole P3
• 1.22 g Au/t and 0.08% Cu over 1.21m from Hole P18
• 1.21 g Au/t and 0.06% Cu over 1.41m from Hole P28
• 1.15 g Au/t and 0.13% Cu over 4.38m from Hole P10
• 1.00 g Au/t and 0.18% Cu over 4.83m from Hole P9

Tailings Pond 2

• 1.40 g Au/t and 0.08% Cu over 3.29m from Hole P47
• 1.12 g Au/t and 0.08% Cu over 3.77m from Hole P52
• 1.08 g Au/t and 0.05% Cu over 2.73m from Hole P56
• 0.98 g Au/t and 0.11% Cu over 5.05m from Hole P64

* grams gold per tonne

Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold commented: "These results have confirmed the results of the initial piston core sampling program in 2012 (see news releases dated March 29, 2012 and April 24, 2012) and indicate that the tailings contain wide spread gold and copper mineralization significantly above the historic reported tailings grade. We are moving forward with a NI 43-101 mineral resource estimate for the tailings based on these new drilling results."

Allan Polk, P.Eng., Project Manager for the Hope Brook Preliminary Economic Assessment (PEA), said: "For the purposes of the PEA, we are now considering the existing tailings material as potential mill feed to either supplement the run of mine material or to provide stand-alone early feed for the project. Both of these options have the secondary benefit of allowing an optimization of the material storage balance for the project. Some metallurgical testwork has been done to investigate the potential of recovering metals from the tailings and more has been initiated as a result of these positive tailings assay results."

As previously reported (see press release dated October 21, 2013) a total of 73 vibracore drill holes totalling 155 metres were completed on an approximate 100-metre square grid over the two tailings ponds, designed to evaluate the full thickness of the tailings and provide sufficient data to support a NI-43-101 compliant mineral resource estimate. Fifty-one of the 73 drill holes successfully sampled tailings with a thickness ranging from 0.3 to 6.0 metres and an average thickness of 3.0 metres. The remainder of the holes (22) encountered bedrock in areas where the tailings ponds where not filled. The previous shallow piston core sampling program indicated that the tailings contain an average grade of approximately 1.0 g Au/t (see news releases dated March 29, 2012 and April 24, 2012).

Drill holes from Tailings Pond 1 are generally higher grade. This is likely because most of the tailings in Pond 1 are reported to be from the earlier years of production when the historic mill lacked a copper flotation circuit for production of a copper concentrate hence had lower reported overall recovery. Most of the tailings in Pond 2 are reported to have been from the latter years of production when the plant recovery was higher due to the addition of the copper flotation circuit.


Tailings Pond 1

Tailings material with an average thickness of 3.12 metres was recovered from 25 of a total 29 vibracore drill holes at Tailings Pond 1. Assay results from the drill holes range from 0.57 g Au/t and 0.08 % Cu over a true thickness of 3.84 metres (hole P21) up to 1.73 g Au/t and 0.12% Cu over a true thickness of 2.39 metres (hole P8).


Tailings Pond 2

Tailings material with an average thickness of 2.94 metres was recovered from 26 of a total 44 vibracore drill holes at Tailings Pond 2. Assay results from the drill holes range from 0.44 g Au/t and 0.12% Cu over a true thickness of 3.33 metres (hole P73) up to 1.40 g Au/t and 0.08% Cu over a true thickness of 3.29 metres (hole P47). Drilling confirmed that the eastern half of this tailings pond has essentially no tailings.

Table 1: Summary of Assay Results for Vibracore Drilling Program, Hope Brook
Drill hole	Easting	Northing	Au g/t	Cu %	Width (m)
Tailings Pond 1
P1	418615	5286965	0.77	0.10%	3.42
P2	418671	5286949	0.78	0.10%	4.19
P3	418815	5286739	1.32	0.13%	1.17
P4	418859	5286672	1.04	0.12%	2.23
P5	418894	5286593	0.61	0.10%	3.93
P6	418602	5286872	1.20	0.15%	3.55
P7	418657	5286787	0.73	0.17%	4.18
P8	418769	5286625	1.73	0.12%	2.39
P9	418541	5286786	1.00	0.18%	4.83
P10	418589	5286707	1.15	0.13%	4.38
P11	418657	5286621	0.97	0.14%	3.25
P12	418711	5286534	0.75	0.08%	0.66
P13	418765	5286457	1.31	0.18%	4.20
P14	418501	5286654	0.99	0.18%	3.07
P15	418559	5286574	0.71	0.08%	0.92
P16	418616	5286492	no sample*
P17	418676	5286414	0.93	0.09%	3.76
P18	418446	5286552	1.22	0.08%	1.21
P19	418501	5286479	no sample*
P20	418562	5286403	0.79	0.08%	1.33
P21	418615	5286320	0.57	0.08%	3.84
P22	418391	5286465	1.28	0.07%	1.81
P23	418451	5286381	no sample*
P24	418505	5286304	0.81	0.06%	5.14
P25	418337	5286411	no sample*
P26	418431	5286302	0.85	0.07%	5.97
P27	418431	5286235	0.57	0.09%	2.31
P28	418269	5286342	1.21	0.06%	1.41
P29	418331	5286287	0.65	0.08%	4.87
Tailings Pond 2
P30	419951	5285410	no sample*
P31	419778	5285520	no sample*
P32	419844	5285438	no sample*
P33	419661	5285530	no sample*
P34	419710	5285449	no sample*
P35	419464	5285601	no sample*
P36	419538	5285532	no sample*
P37	419585	5285457	no sample*
P38	419450	5285475	no sample*
P39	419494	5285421	0.80	0.14%	0.56
P40	419552	5285339	no sample*
P41	419392	5285542	no sample*
P42	419248	5285541	0.97	0.07%`	1.90
P43	419329	5285487	no sample*
P44	419386	5285406	no sample*
P45	419443	5285320	no sample*
P46	419499	5285237	no sample*
P47	419172	5285572	1.40	0.08%	3.29
P48	419161	5285491	0.77	0.08%	4.53
P49	419252	5285419	0.76	0.09%	0.62
P50	419368	5285249	no sample*
P51	419424	5285173	no sample*
P52	419116	5285430	1.12	0.08%	3.77
P53	419190	5285333	0.63	0.09%	3.40
P54	419304	5285174	0.63	0.07%	1.61
P55	419350	5285118	0.49	0.10%	3.26
P56	419067	5285347	1.08	0.05%	2.73
P57	419126	5285246	0.68	0.06%	4.60
P58	419186	5285166	0.64	0.09%	1.28
P59	419245	5285081	0.62	0.07%	3.81
P60	419301	5285000	0.64	0.08%	2.70
P61	418995	5285266	0.81	0.04%	3.40
P62	419049	5285182	0.92	0.06%	1.09
P63	419110	5285101	0.81	0.04%	2.26
P64	419166	5285018	0.98	0.11%	5.05
P65	419226	5284940	no sample*
P66	419012	5285067	0.67	0.05%	3.60
P67	419072	5284984	0.61	0.04%	2.87
P68	419128	5284925	0.54	0.13%	3.12
P69	419187	5284821	0.69	0.08%	3.61
P70	418958	5285001	0.61	0.05%	3.34
P71	419035	5284896	0.71	0.08%	1.50
P72	419108	5284829	0.69	0.09%	5.32
P73	419168	5284732	0.44	0.12%	3.33

Au = gold; Cu = copper; Width = true thickness; g/t = grams per tonne; %percent

*no sample. Hole for which "no sample" is reported were drill locations where no or very little tailings were present and no sample could be recovered.

ABOUT COASTAL GOLD

Coastal Gold is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "COD". Coastal Gold's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 12.4 million tonnes at 1.48 g Au/t for 590,000 ounces of indicated mineral resources and 8.2 million tonnes at 2.07 g Au/t for 548,000 ounces of inferred mineral resources (see technical report entitled "Updated Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada", effective October 1, 2012). Coastal Gold is currently completing an updated mineral resource estimate which will form the basis for a Preliminary Economic Assessment (PEA) which is also in progress.


SAMPLING, ASSAYING AND QUALITY CONTROL

The vibracore drilling program is a low impact coring method that allows for recovery of unconsolidated sediments using a four inch diameter aluminum core tube. The tailings core were logged, photographed and then split in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Minerals, with sample preparation done in Sudbury and analytical work done in North Vancouver. All locations of ALS Minerals are ISO 9001:2000 certified. The entire sample received was dried, weighed and crushed to = 70% passing 1mm. A sample split of up to 1000g is then pulverized to = 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper was analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Coastal Gold also inserts external reference standards as a further external check.


QUALIFIED PERSONS

Dr. John Gale, P.Eng., President of Fracflow Consultants Inc., supervised the vibracore drilling program. Dr. Gale is an independent qualified person as defined by NI 43-101. David Copeland, P.Geo., Chief Geologist, and Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, both qualified persons as defined by NI 43-101, have reviewed and approved the scientific and technical content of this news release.


Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the exploration prospects with respect to the Company's project, the Company's future plans and the estimation of mineral resources. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER 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.

To view Figures 1 and 2, please visit the following link:
http://media3.marketwire.com/docs/914086I.pdf



Contact

Coastal Gold Corp.
Rob Hopkins, Manager, Investor Relations
416-861-5899
info@coastalgold.ca

Coastal Gold Corp.
Bill Pearson, President & CEO
416-861-2968
president@coastalgold.ca
www.coastalgold.ca