Continental Gold Drills High-Grade Gold and Silver in the Veta Sur and Laurel Vein Systems and Extensions at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - Jan 9, 2014) - Continental Gold Ltd. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 11 diamond drill-holes from the Veta Sur and eastern Laurel vein systems as part of the Company's 2013 exploration program at the Buriticá project in Antioquia, Colombia. Drilling will continue in 2014 with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories.

Highlights (referenced in Figures 1 and 2)

• All drill-holes were successful in extending and infilling vein families in the Veta Sur vein system.

• Nine drill-holes encountered a series of veins located north of the current block model for the Veta Sur system prepared in accordance with National Instrument 43-101 ("NI 43-101"). These as-yet unmodeled veins were intersected over strike lengths of up to 400 metres and vertical extents of up to 500 metres, the veins remaining open along strike and to depth. High-grade intercepts include:
  • 0.7 metres @ 26.8 g/t gold and 118 g/t silver (BUSY355, elevation of 1,112 metres);
  • 2.0 metres @ 11.7 g/t gold and 14 g/t silver (BUSY360, elevation of 1,175 metres);
  • 0.57 metres @ 3.0 g/t gold and 1,260 g/t silver (BUUY173, elevation of 1,582 metres);
  • 0.5 metres @ 0.8 g/t gold and 652 g/t silver (BUUY178, elevation of 1,741 metres);
  • 1.0 metres @ 0.3 g/t gold and 535 g/t silver (BUUY183, elevation of 1,219 metres); and
  • 0.5 metres @ 0.5 g/t gold and 673 g/t silver (BUUY202, elevation of 1,409 metres).

• Three drill-holes intersected a series of veins located to the south of the current block model for the Veta Sur system. One of these holes, BUSY358, specifically targeted the Laurel vein system located well south of Veta Sur and also south of the Veta Sur ramp currently under construction. Highlighted intercepts from the three holes include:
  
  • 0.5 metres @ 44.2 g/t gold and 23 g/t silver (BUSY355, elevation of 1,447 metres);
  • 0.67 metres @ 26 g/t gold and 36 g/t silver (BUSY360, elevation of 1,481 metres); and
  • 0.6 metres @ 7.4 g/t gold and 16 g/t silver (BUSY358, elevation of 1,665 metres).

• Elsewhere, several drill-holes extended veins within the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts including: whereas several drill-holes extended veins to higher elevations than in the current mineral resource model, with intercepts including:
  • 0.7 metres @ 25.2 g/t gold and 64 g/t silver (BUSY355, elevation of 1,292 metres);
  • 0.95 metres @ 26.4 g/t gold and 14 g/t silver (BUSY360, elevation of 1,208 metres);
  • 0.5 metres @ 18.9 g/t gold and 1,020 g/t silver (BUUY159, elevation of 1,387 metres);
  • 1.35 metres @ 11.4 g/t gold and 205 g/t silver (BUUY159, elevation of 1,373 metres); and
  • 0.5 metres @ 13.6 g/t gold and 1,410 g/t silver (BUUY159, elevation of 1,248 metres);
    whereas several drill-holes extended veins to higher elevations than in the current mineral resource model, with intercepts including:
  • 0.5 metres @ 14.8 g/t and 76 g/t silver (BUUY159, elevation of 1,680 metres);
  • 4.15 metres @ 21.7 g/t gold and 19 g/t silver, including 0.5 metres @ 158.5 g/t gold and 62 g/t silver (BUUY194, elevation of 1,696 metres); and
  • 0.75 metres @ 13.6 g/t gold and 4 g/t silver (BUUY202, elevation of 1,699 metres).

• Infill drilling continued to encounter better than expected vein grades and/or thicknesses from the current Veta Sur resource block model, with intercepts including:
  • 0.83 metres @ 19.8 g/t gold and 47 g/t silver (BUSY355, elevation of 1,149 metres);
  • 0.6 metres @ 26.8 g/t gold and 12 g/t silver (BUSY360, elevation of 1,304 metres);
  • 1.93 metres @ 18.9 g/t gold and 106 g/t silver (BUUY173, elevation of 1,678 metres);
  • 1.8 metres @ 9 g/t gold and 36 g/t silver (BUUY176, elevation of 1,615 metres);
  • 6.15 metres @ 10.4 g/t gold and 21 g/t silver, including 0.55 metres @ 83.1 g/t gold and 5 g/t silver (BUUY183, elevation of 1,685 metres); and
  • 9.85 metres @ 34.4 g/t gold and 111 g/t silver, including 1.13 metres @ 110.7 g/t gold and 236 g/t silver plus 1.0 metres @ 91.3 g/t gold and 261 g/t silver (BUUY202, elevation of 1,672 metres).

"Drilling continues to successfully infill and vertically extend existing veins while encountering new veins outside of the current mineral resource block model," commented Ari Sussman, CEO. "The updated mineral resource estimate remains on track for release in the first quarter of 2014 and will include the current drill results."

Details

Continental's 100%-owned, 58,773-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 700 metres of strike and 1,300 vertical metres. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. See "About Continental Gold" below for a précis of the updated mineral resource estimates for the Buriticá projectprepared in accordance with NI 43-101. This release documents the results of extension and infill drilling of the Veta Sur system and, to the south of this, the Laurel vein system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

Table I: Drilling Highlights

Four holes (BUSY355, BUSY360, BUSY359 and BUUY176) were drilled from the south to the north to transect the Veta Sur vein system over a strike length of 300 metres and through a substantial range of elevations. Intercepts to the south of the current Veta Sur mineral resource envelope include:

• 0.5 metres @ 44.2 g/t gold and 23 g/t silver (BUSY355, elevation of 1,447 metres); and
• 0.67 metres @ 26 g/t gold and 36 g/t silver (BUSY360, elevation of 1,481 metres).

These and other intercepts represent previously unmodeled southern Veta Sur vein families, which remain open laterally and to depth.

Nine drill holes (including the four holes mentioned above) intersected multiple families of veins to the north of the current Veta Sur mineral resource, with high-grade gold and/or silver intercepts including:

• 3.1 metres @ 7.6 g/t gold and 36 g/t silver, including 0.7 metres @ 26.8 g/t gold and 118 g/t silver (BUSY355, elevation of 1,112 metres);
• 2.0 metres @ 11.7 g/t gold and 14 g/t silver (BUSY360, elevation of 1,175 metres);
• 0.57 metres @ 3 g/t gold and 1,260 g/t silver (BUUY173, elevation of 1,582 metres);
• 0.5 metres @ 0.8 g/t gold and 652 g/t silver (BUUY178, elevation of 1,741 metres);
• 0.5 metres @ 0.5 g/t gold and 673 g/t silver (BUUY202, elevation of 1,409 metres); and
• 1.0 metres @ 0.3 g/t gold and 535 g/t silver (BUUY183, elevation of 1,219 metres).

Intercepts within BUUY202 (from 372 metres down-hole), BUUY183 (from 328 metres down-hole) and BUUY178 (from 223 metres down-hole) potentially represent far-west extensions of the Yaraguá vein system over a 500-metre range of elevations with the silver-to-gold ratio varying between moderate to high.

Intercepts to the south of the aforementioned holes - BUSY355 (699-735 metres down-hole), BUSY359 (349-388 metres down-hole), BUSY360 (627-717 metres down-hole), BUUY173 (159-274 metres down-hole), BUUY178 (223-237 metres down-hole), BUUY194 (180-303 metres down-hole) and BUUY176 (265-455 metres down-hole) - represent previously unmodeled northern vein families of the Veta Sur vein system. These vein families have now been intersected over 400 metres of strike length and at depth ranges of 1,000 metres, and typically appear to show increasing gold/silver with depth. The northern Veta Sur vein families remain open laterally and to depth.

Elsewhere, several drill-holes extended parts of the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts (from northeast to southwest) including:

• 2.3 metres @ 5.6 g/t gold and 250 g/t silver, including 0.5 metres @ 18.9 g/t gold and 1,020 g/t silver (BUUY159, elevation of 1,387 metres);
• 1.35 metres @ 11.4 g/t gold and 205 g/t silver (BUUY159, elevation of 1,373 metres);
• 1.0 metres @ 7.2 g/t gold and 266 g/t silver (BUUY159, elevation of 1,334 metres);
• 0.5 metres @ 13.6 g/t gold and 1,410 g/t silver (BUUY159, elevation of 1,248 metres);
• 0.95 metres @ 26.4 g/t gold and 14 g/t silver (BUSY360, elevation of 1,208 metres); and
• 0.7 metres @ 25.2 g/t gold and 64 g/t silver (BUSY355, elevation of 1,292 metres).

Several drill-holes extended several veins to higher elevations than in the current mineral resource model, with intercepts including:

• 0.5 metres @ 14.8 g/t gold and 76 g/t silver (BUUY159, elevation of 1,680 metres);
• 0.75 metres @ 13.6 g/t gold and 4 g/t silver (BUUY202, elevation of 1,699 metres);
• 0.5 metres @ 15 g/t gold and 17 g/t silver (BUUY183, elevation of 1,696 metres); and
• 4.15 metres @ 21.7 g/t gold and 19 g/t silver, including 0.5 metres @ 158.5 g/t gold and 62 g/t silver (BUUY194, elevation of 1,696 metres).

Drill intersections within the current Veta Sur mineral resource envelope are generally consistent with grade X thicknesses of comparable areas of the current mineral resource model. Some intercepts were of significantly higher grades and/or apparent thicknesses, including:

• 3.05 metres @ 11 g/t gold and 14 g/t silver (BUUY159, elevation of 1,670 metres);
• 2.75 metres @ 18.2 g/t gold and 52 g/t silver, including 1.1 metres @ 41.2 g/t gold and 93 g/t silver (BUUY159, elevation of 1,618 metres);
• 1.7 metres @ 8 g/t gold and 7 g/t silver (BUSY360, elevation of 1,369 metres);
• 0.6 metres @ 26.8 g/t gold and 12 g/t silver (BUSY360, elevation of 1,304 metres);
• 0.65 metres @ 17.3 g/t gold and 374 g/t silver (BUUY202, elevation of 1,688 metres);
• 9.85 metres @ 34.4 g/t gold and 111 g/t silver, including 1.13 metres @ 110.7 g/t gold and 236 g/t silver plus 1.0 metres @ 91.3 g/t gold and 261 g/t silver (BUUY202, elevation of 1,672 metres);
• 0.8 metres @ 23.3 g/t gold and 336 g/t silver (BUUY202, elevation of 1,627 metres);
• 0.5 metres @ 32.3 g/t gold and 11 g/t silver (BUUY202, elevation of 1,605 metres);
• 6.15 metres @ 10.4 g/t gold and 21 g/t silver, including 0.55 metres @ 83.1 g/t gold and 5 g/t silver (BUUY183, elevation of 1,685 metres);
• 4.75 metres @ 8.5 g/t gold and 100 g/t silver, including 1.75 metres @ 20.2 g/t gold and 255 g/t silver (BUUY183, elevation of 1,675 metres);
• 1.93 metres @ 18.9 g/t gold and 106 g/t silver (BUUY173, elevation of 1,678 metres);
• 0.83 metres @ 19.8 g/t gold and 47 g/t silver (BUSY355, elevation of 1,149 metres); and
• 1.8 metres @ 9 g/t gold and 36 g/t silver (BUUY176, elevation of 1,615 metres).

To the south of the Veta Sur vein system, BUSY358 and BUSY360 intersected the eastern Laurel vein family at high elevations, with highlighted intercepts including:

• 0.6 metres @ 7.4 g/t gold and 16 g/t silver (BUSY358, elevation of 1,665 metres); and
• 0.5 metres @ 3.1 g/t gold and 162 g/t silver (BUSY360, elevation of 1,717 metres).

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with over 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia, whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Ltd. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc.

In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. A Phase V drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.

Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, and exploration and mine development plans, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/CGFig118.pdf

To view Figure 2, please click on the following link: http://media3.marketwire.com/docs/CGFig218.pdf