Continental Gold Drilling Extends the Vertical Dimension at Both the Yaragua and Veta Sur Systems to 1,500 Metres at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - Oct 14, 2014) - Continental Gold Ltd. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 20 diamond drill-holes at the Veta Sur, Yaraguá and Laurel vein systems at the Company's 100%-owned Buriticá project in Antioquia, Colombia. Drilling continues throughout 2014 with the goal of upgrading Inferred resources into the Measured and Indicated categories in accordance with National Instrument 43-101 ("NI 43-101"), and increasing the total mineral resource estimate.

Highlights (referenced in Figures 1, 2 and 3)

• A 100-metre step-out drill-hole to depth at the Veta Sur vein system has successfully extended the vertical dimension of the current mineral resource envelope to 1,500 metres. Drill-hole BUSY367D02 intersected 4.85 metres @ 4.9 g/t gold and 9 g/t silver at an elevation of 298 metres, making it the deepest mineralized intercept to date at Veta Sur.
  
• Multiple drill-holes at Veta Sur were successful in extending both the lateral and vertical strike lengths of various veins outlined in the current mineral resource block model. Assay results from drill-holes that were perforated above the block model include 7.5 metres @ 23.2 g/t gold and 4 g/t silver (BUUY277) and 1.05 metres @ 695.3 g/t gold and 140 g/t silver (BUUY280). Assay results from drill-holes that extended veins along strike or at depth include 2.45 metres @ 16 g/t gold and 12 g/t silver (BUUY271D04).
  
• Drilling was successful in infilling the Veta Sur vein system along 700 metres of lateral strike by over 1,000 metres of vertical strike. A majority of the veins encountered in drilling yielded grades X thicknesses significantly above those expected from the current mineral resource block model, with results including 7.5 metres @ 24.2 g/t gold and 33 g/t silver (BUUY271D02) and 7.15 metres @ 23.4 g/t gold and 23 g/t silver (BUUY271D04).
  
• A step-out drill-hole at the Yaraguá vein system has successfully extended the vertical dimension of the current mineral resource envelope by over 200 metres to an aggregate of more than 1,500 metres of vertical strike length. Drill-hole BUSY367D03 intersected 2.45 metres @ 29 g/t gold and 62 g/t silver at an elevation of 235 metres, making it the deepest mineralized intercept to date at Yaraguá.
  
• These drilling results indicate continuity of several vein families within each of the vein systems over large vertical and horizontal extents in areas potentially developable from the proposed underground infrastructure. The Veta Sur and Yaraguá vein systems remain open to the west and to depth throughout.

"The upside potential of Buriticá continues unabated. There has been more than 250,000 metres of diamond drilling at Buriticá over the past five years, and yet we continue to expand on the multi-million ounce mineral resource estimate of the Yaraguá and Veta Sur systems", commented Ari Sussman, CEO of Continental.

Details

Continental's 100%-owned, 62,425-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 1,100 metres of strike and 1,500 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along over 1,000 metres of strike and 1,500 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 to the west, at high grades. See "About Continental Gold" below for a précis of the updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101. This press release describes the results of infill and extension drilling (completed after the December 31, 2013 closure of the database for the Buriticá 2014 mineral resource estimate) through western to eastern Veta Sur, the northeastern Laurel vein system to the south of Veta Sur, and western Yaraguá to the north. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2 and 3.

Table I: Drilling Highlights

Veta Sur Vein System

Four holes (BUUY271D01, BUUY271D02, BUUY271D03 and BUUY271D04) were deviated and directionally drilled from "mother hole" BUUY271D, targeting extensions of, and infilling, the Veta Sur vein system in the southwest where sparse prior drilling had only been done at relatively shallow depths (Figure 1). These drill-holes intersected multiple veins to the southwest of the current mineral resource envelope, significantly extending the northern and southern vein families in this area through an elevation range of 500 metres (Table I, Figures 2 and 3). Key intercepts outside of the current Veta Sur mineral resource envelope, include:

• 0.6 metres @ 18.2 g/t gold and 1 g/t silver (BUUY271D01, elevation of 950 metres);
  
• 0.5 metres @ 21.9 g/t gold and 10 g/t silver (BUUY271D01, elevation of 854 metres);
  
• 0.5 metres @ 40.2 g/t gold and 59 g/t silver (BUUY271D01, elevation of 707 metres);
  
• 0.65 metres @ 16.4 g/t gold and 5 g/t silver (BUUY271D02, elevation of 783 metres);
  
• 1.2 metres @ 8.1 g/t gold and 18 g/t silver (BUUY271D03, elevation of 617 metres);
  
• 2.45 metres @ 16 g/t gold and 12 g/t silver, including 1.15 metres @ 32.8 g/t gold and 25 g/t silver (BUUY271D04, elevation of 469 metres); and
  
• 0.5 metres @ 19.8 g/t gold and 8 g/t silver (BUUY271D04, elevation of 454 metres).

These drill-holes, at higher elevations, also commonly encountered veins with grades X thicknesses that are significantly above those expected from the current mineral resource block model in western Veta Sur (Figure 3). Related veins and intercepts include:

• 2.65 metres @ 36 g/t gold and 48 g/t silver, including 1.0 metres @ 88.4 g/t gold and 100 g/t silver (BUUY271D01, V48, elevation of 1,095 metres);
  
• 7.5 metres @ 24.2 g/t gold and 33 g/t silver, including 1.45 metres @ 102 g/t gold and 99 g/t silver (BUUY271D02, V48, elevation of 1,107 metres);
  
• 0.5 metres @ 59.7 g/t gold and 122 g/t silver (BUUY271D04, V48, elevation of 1,070 metres); and
  
• 7.15 metres @ 23.4 g/t gold and 23 g/t silver, including 1.5 metres @ 84.1 g/t gold and 74 g/t silver (BUUY271D04, V43, elevation of 1,057 metres).

In central Veta Sur, BUSY367D02 intersected multiple veins to the southwest of, and below, the current mineral resource envelope (Figure 2). Significant intercepts, including the deepest mineralized interval ever drilled at Veta Sur, include:

• 1.1 metres @ 19.9 g/t gold and 38 g/t silver (elevation of 606 metres);
  
• 0.57 metres @ 27.7 g/t gold and 5 g/t silver (elevation of 572 metres); and
  
• 4.85 metres @ 4.9 g/t gold and 9 g/t silver, including 1.5 metres @ 9 g/t gold and 19 g/t silver (elevation of 295 metres).

Other drill-holes in central Veta Sur commonly encountered veins with grades X thicknesses significantly above those expected from the current mineral resource block model in this area. Related veins and intercepts include:

• 2.65 metres @ 14.9 g/t gold and 80 g/t silver, including 0.9 metres @ 39 g/t gold and 120 g/t silver (BUSY369D01, V48, elevation of 1,469 metres);
  
• 1.15 metres @ 14.2 g/t gold and 73 g/t silver (BUSY369D01, V42, elevation of 1,455 metres);
  
• 0.5 metres @ 23.2 g/t gold and 18 g/t silver (BUSY369D01, V39, elevation of 1,446 metres);
  
• 4.95 metres @ 19.3 g/t gold and 80 g/t silver, including 2.6 metres @ 34 g/t gold and 120 g/t silver (BUSY369D03, V42, elevation of 1,392 metres); and
  
• 1.05 metres @ 23.8 g/t gold and 97 g/t silver (BUSY369D03, V39, elevation of 1,376 metres).

In eastern Veta Sur, drilling intersected high-grade veins above and below the current mineral resource envelope (Figure 2). Significant intercepts, at high elevations, include:

• 7.5 metres @ 23.2 g/t gold and 4 g/t silver (BUUY277, elevation of 1,582 metres);
  
• 1.05 metres @ 695.3 g/t gold and 140 g/t silver (BUUY280, elevation of 1,578 metres); and
  
• 0.4 metres @ 86.2 g/t gold and 279 g/t silver (BUUY280, elevation of 1,579 metres).

Intercepts, below the current mineral resource envelope, include:

• 2.5 metres @ 13.1 g/t gold and 68 g/t silver, including 1.0 metres @ 24.1 g/t gold and 92 g/t silver (BUSY367D03, elevation of 534 metres);
  
• 1.5 metres @ 22.5 g/t gold and 95 g/t silver (BUSY367D03, elevation of 452 metres);
  
• 0.6 metres @ 13.9 g/t gold and 12 g/t silver (BUSY367D03, elevation of 397 metres);
  
• 0.5 metres @ 29.1 g/t gold and 59 g/t silver (BUSY368D01, elevation of 1,151 metres); and
  
• 7.5 metres @ 4.8 g/t gold and 14 g/t silver, including 1.6 metres @ 14.8 g/t gold and 15 g/t silver (BUUY228D01, elevation of 1,139 metres).

Drill intercepts in eastern Veta Sur, with grades X thicknesses substantially greater than those expected from the current mineral resource block model, include:

• 9.25 metres @ 5.4 g/t gold and 34 g/t silver, including 2.1 metres @ 17.8 g/t gold and 86 g/t silver (BUUY280, V62, elevation of 1,547 metres); and
  
• 3.6 metres @ 9.8 g/t gold and 5 g/t silver, including 1.7 metres @ 18.5 g/t gold and 6 g/t silver (BUUY228D02, V39, elevation of 1,131 metres).
  

In summary, these drilling results demonstrate the continuity of several of the vein families in the Veta Sur system over large lateral and vertical extents in areas potentially developable from proposed underground infrastructure. The results from the southwest of the system and to depth (Figures 1, 2 and 3) are particularly encouraging for extensions to the current Veta Sur mineral resource envelope, and infill drilling continues to add confidence to the Veta Sur mineral resource models. The Veta Sur system remains open to depth and to the southwest.

Yaraguá Vein System

Although drilling was primarily targeting the Veta Sur system, certain drill-holes extended to the north into the western parts of the Yaraguá vein system, resulting in extensions to, and infill of, the vein system over a broad range of elevations. Intercepts, which are located below the current Yaraguá mineral resource envelope and include the deepest intersection yet obtained, include:

• 2.45 metres @ 29 g/t gold and 62 g/t silver, including 1.15 metres @ 53.6 g/t gold and 45 g/t silver (BUSY367D03, elevation of 235 metres);
  
• 1.9 metres @ 15.4 g/t gold and 5 g/t silver (BUUY228D04, elevation of 906 metres); and
  
• 2.99 metres @ 10.3 g/t gold and 12 g/t silver, including 1.2 metres @ 24.4 g/t gold and 24 g/t silver (BUUY228D03, elevation of 1,144 metres).

High-grade intercepts outside the current Yaraguá mineral resource envelope include 2.73 metres @ 54.9 g/t gold and 36 g/t silver (BUUY228D04, elevation of 1,013 metres).

Vein grades X thicknesses greater than those expected from the current Yaraguá mineral resource block model were encountered by most drill-holes. Related intercepts and veins include:

• 0.6 metres @ 23.5 g/t gold and 16 g/t silver (BUUY228D01, MU10, elevation of 1,094 metres);
  
• 0.7 metres @ 10.2 g/t gold and 12 g/t silver (BUUY228D01, MU, elevation of 1,082 metres); and
  
• 0.51 metres @ 7.9 g/t gold and 286 g/t silver (BUUY228D03, MU1, elevation of 1,187 metres).

The Yaraguá vein system remains open to depth and to the west.

Laurel Vein System

Northern vein families of the Laurel system, to the south of Veta Sur, were intersected by five drill-holes through vertical and horizontal ranges of 600 metres and 250 metres, respectively.

Higher-grade intercepts include:

• 0.6 metres @ 16.2 g/t gold and 1 g/t silver (BUSY367D03, elevation of 1,120 metres);
  
• 1.55 metres @ 9.4 g/t gold and 11 g/t silver (BUSY368D01, elevation of 1,324 metres); and
  
• 0.5 metres @ 19.4 g/t gold and 7 g/t silver (BUSY368D01, elevation of 1,288 metres).

The Laurel vein system remains open in all directions.

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 reviewed and approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 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 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 "Independent Technical Report and Resource Estimate on the Buritica Gold Project 2013", dated June 25, 2014 with an effective date of December 31, 2013, 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 May 13, 2014, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101. This estimate covers the Yaraguá and Veta Sur vein systems, with a combined Measured mineral resource of 0.99 million tonnes of mineralized material containing 0.65 million ounces of gold grading 20.4 g/t gold, 1.54 million ounces of silver grading 48 g/t silver, and 15.0 million pounds of zinc grading 0.7% zinc, and a combined Indicated mineral resource of 7.41 million tonnes of mineralized material containing 2.15 million ounces of gold grading 9.0 g/t gold, 6.89 million ounces of silver grading 29 g/t silver, and 75.1 million pounds of zinc grading 0.5% zinc. The combined Inferred mineral resource is 16.7 million tonnes of mineralized material containing 4.2 million ounces grading 7.8 g/t gold, 13.1 million ounces of silver grading 24 g/t silver and 111 million pounds of zinc grading 0.3% 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 achieved major advances with the access tunnel, which is providing access for underground drilling and will eventually be used for commercial production. Future development is dependent on, among other things, continued exploration success, environmental and board approvals, completing positive economic studies and the determination that the deposit is economically viable. A Phase V drill program is underway at the Buriticá project to further delineate the mineral resources 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. 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.

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