SolGold PLC Announces Porvenir Project Update

Highlights:

References to figures and tables relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/1181Y_1-2019-5-6.pdf

Commenting on the result, SolGold CEO Mr Nick Mather said "The latestprogress at Porvenir is indicative of the effort SolGold puts into its firstmover advantage secured in 2014 across Ecuador. SolGold's team of geoscientistsled by Dr. Steve Garwin, porphyry expert, recognised several targets with theright geochemical, geological and geophysical signature and we have so farsecured eleven of them. SolGold is committed to leading the developmentof a sustainable copper-gold mining industry in Ecuador. The high grades andstrong gold endowment at Alpala and Porvenir provide us with a uniqueopportunity to develop this Company without joint ventures.

Thesize and grade of the outcropping mineralisation at Porvenir indicates asignificant copper gold porphyry system. The 150m long channel sample issignificantly longer and richer than the 50m long discovery outcrop at Alpalain the Cascabel tenement, which has so far yielded a contained resource of 23million ounces of gold and nearly 11 million tonnes of copper.

ThePorvenir system has the hallmarks of a significant discovery so far.

SolGoldhas identified and secured the best of an entire copper-gold province, the sizeand metallurgy of northern Chile. That's a unique approach that can't bereplicated. We are confident that Alpala and now Porvenir are the firstprojects in a long, large and rich string of them.

Thenext generation of growth in SolGold is going to come from more spectaculardiscoveries on a 100% basis like Porvenir. All SolGold shareholders will enjoythat growth, including hopefully the Cornerstone Capital Corporationshareholders who are soon to be availed of our bid for Cornerstone.

We havethe cash, the expertise and the focus to deliver."

FurtherInformation

Ecuador is located on the rich and under-explored northern section of the Andean Copper Belt. The well explored southern portion is renowned as the production base for nearly half of the world's copper (Figure 1). Follow up exploration has focussed on 12 priority projects identified across SolGold's 72 regional concessions.

SolGold is applying the successful, rapid, socially and environmentally responsible and efficient copper gold exploration blueprint it developed at Cascabel to these targets.

SolGold's strategy is to become a tier 1 copper and gold producer and build the base for a strong copper gold production house based on diverse projects. SolGold's first mover advantage, strong operational capability and systematic exploration programs continues to yield exciting results.

With 11 priority projects now recognised, ongoing exploration by SolGold technical teams is focussed on advancing these priority projects with a view to progress to drill testing as soon as possible. SolGold's high success rate has been achieved by operating multiple field teams comprising 42 Ecuadorean geologists in regional exploration, led by highly experienced national geologists and applying the blueprint developed over the last 4 years.

Drilling is scheduled to commence on regional projects in Q2 2019, subject to finalisation of relevant permits.

Target15: Initial Results

Target 15 is located within Porvenir 2 concession, north of the town of La Canel in southern Ecuador (Figures 1 and 2).

Additional rock saw sampling along the Cacharposa Creek has continued to return encouraging results, with the current intercept along the Cacharposa Creek now:

The mineralised rock saw intersection at Target 15 is significantly longer than the initial rock saw sampling of the Alpala discovery outcrop which returned 56.93m at 1.16g/t Gold and 0.30% Copper. Field teams are clearing and preparing extensions of the Cacharposa Creek for additional sampling, following the mineralisation upstream.

The assay results from this work show highly consistent copper and gold grades throughout the intersection, and exhibit a consistent copper ̶ gold ratio of approximately 1% Cu : 1g/t Au (Figure 3).

The Target 15 mineralised corridor is characterised by surface exposure of porphyry-style sheeted and stockwork B-type quartz-chalcopyrite-magnetite veining. Veining occurs as three steeply-dipping vein sets orientated northwest, east-northeast, and west-northwest (Figure 5). Field studies of the porphyry-related vein types and paragenesis at Target 15 are ongoing, and initial work indicates a sequential vein development typical of many significant porphyry copper-gold systems, such as SolGold's Alpala porphyry copper-gold deposit in Northern Ecuador (10.9Mt Cu, 23.2Moz Au).

The exposed outcrops along La Cacharposa Creek in Target 15 lie within soil copper, gold, molybdenum, Cu/Zn and Mo/Mn geochemical anomalies that cover an area approximately 1200m long and 800m wide (Figure 4). The presence of potassic alteration (K-feldspar - magnetite) overprinted by intermediate argillic alteration (chlorite - sericite - clay) is associated with higher gold grades and surrounded by phyllic (quartz - sericite - pyrite) and extensive epidote-propylitic alteration (Figure 7 & 8). The size and strength of the geochemical anomalies and the zoning of the hydrothermal alteration assemblages are consistent with the presence of a porphyry copper-gold system.

As rock-saw sampling and mapping work continues in the field, SolGold geologists are developing the target towards drill ready status in the coming quarter.

A program of detailed ground magnetics will commence early next year covering the entire Target 15 area. Followed by an airborne-magnetic survey covering the entire Porvenir Project.

Figure 1: Location plan showing the Porvenir project in southern Ecuador.

Figure2: Prospect locations showing soil copper geochemical results.

Figure3: Rock saw channel sampling copper and gold results from La Cacharposa Creek in Target 15 at Porvenir.

Figure4: Geology with anomalous soil gold, copper and molybdenum contours for Target 15 at Porvenir.

Figure5: Examples of veining and alteration styles at Target 15, Porvenir.

Figure 6: Mineralised rock samples taken from the Mula Muerta Creek

Figure7: Hydrothermal alteration assemblages at Target 15, Porvenir.

Figure8: Target 15 - Hydrothermal alteration map shown draped over the results of 3D geochemical modelling by Fathom Geophysics. The 3D geochemical shapes (red volumes) suggest that the soil geochemical results are consistent with the occurrence of porphyry copper-(gold) mineralisation both near surface and at depth.

Table 1: Rock saw channel results for copper, gold and copper-equivalent at Target 15, Porvenir.

Note: Copper-equivalent values calculated using the formula, % CuEq = % Cu + (0.63 * g/t Au).

*All samples were analysed by ALS in Lima Peru using Au 30g FA-AA Finish and 48 element four acid digest ICP-MS.

MarketAbuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

QualifiedPerson:

Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company. Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules. Mr Ward consents to the inclusion of the information in the form and context in which it appears.

By order of the Board

Karl Schlobohm

Company Secretary

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SOURCE: SolGold plc