SolGold PLC Announces Regional Exploration Update

ExtensiveLithocap Identified at Rio Amarillo with Significant Copper and Gold Results

BISHOPSGATE, May 30, 2019 - The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company's regional exploration activities from its 100% owned Rio Amarillo Project in northern Ecuador, held by wholly owned subsidiary Carnegie Ridge Resources.

Highlights:

*Please see all figures in this announcement to see the ranges of all samples

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/5364A_1-2019-5-29.pdf

Introduction

Ecuador is located on the rich and under-explored section of the Andean Copper Belt, from which the well explored southern portion is renowned as the production base for nearly half of the world's copper (Figure 1). SolGold's strategy to become a tier 1 copper and gold producer through systematic exploration continues to yield exciting results. Follow up exploration has focussed on 12 priority projects identified across SolGold's 72 regional concessions.

With 12 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, applying the successful exploration blueprint developed by SolGold over the last 4 years.

Drilling is scheduled to commence on regional projects as soon as practical following completion of permitting processes.

FurtherInformation

The Rio Amarillo project consists of 3 concessions; Rio Amarillo 1, 2 & 3. Currently, 5 prospects have been identified on concessions 1 & 2. The main geological feature of the Rio Amarillo project is the extensive lithocap extending 2km by 2.4km in area.

Whilst the lithocap has an extensive covering of volcanic ash, outcrops of crackle and hydrothermal breccia (Photo 1) have been located, including areas of silica clay and advanced argillic hydrothermal alteration. Bordering the altered lithocap are various outcrops of diorite and quartz-diorite containing mineralised B type veins (Photo 2). Best rock chip results include:

Cuambo and Pasquel prospects are distal to the lithocap with epithermal vein mineralisation identified. The epithermal veining at these prospects are possibly associated with a deeper porphyry system that is responsible for the advanced argillic alteration forming the lithocap. Best results include:

At the Chilanes prospect, located proximal to the lithocap, B type veins have been mapped and sampled. An outcrop of stockwork B type veins (Photo 5) has been identified hosted in a dark micro diorite - quartz diorite with the matrix altered to magnetite and chlorite, with best rock chip results including:

The Puguran is located in Rio Amarillo 2. It represents a 250m long quartz diorite outcrop in Palomar creek (Photo 6) with B and D type veins identified. Alteration in this creek is interpreted as potassic overprinted by later phyllic alteration. Rock saw sampling returned:

Figure1: Location plan showing the Rio Amarillo project in northern Ecuador.

Figure2: Prospect location map - Rio Amarillo

Figure 3: Rock chip locations - copper and gold results

Photo 1: Hydrothermal breccia found in the lithocap

Photo 2: Quartz diorite with B type veining

Photo 3: Realgar vein associated with hydrothermal systems

Photo 4: Pasquel Prospect - gold rich iron oxide veins

Photo 5: Copper gold stockwork B type veins

Photo 6: Pugaran prospect - strongly altered and copper rich with B and D type veining

Table 1: Significant rock chip results Pasquel Prospect

Table 2: Significant rock chip results Cuambo Prospect

Table 3: Significant rock chip results Chilanes Prospect

Table 4: Significant rock chip results Lithocap area

Table 5: Puguran rock saw sampling

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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CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the "Company") and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors. Such forward-looking and interpretative statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or forward-looking statements; and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time expenditure, metals prices and other affecting circumstances.

This release may contain "forward €‘looking information" within the meaning of applicable Canadian securities legislation. Forward €‘looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. 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".

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The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis, and where possible aims to circulate all available material on its website.

The Company recognises that the term "World Class" is subjective and for the purpose of the Company's projects the Company considers the drilling results at the growing Alpala Porphyry Copper Gold Deposit at its Cascabel Project to represent intersections of a "World Class" deposit. The Company considers that "World Class" deposits are rare, very large, long life, low cost, and are responsible for approximately half of total global metals production.

"World Class" deposits are generally accepted as deposits of a size and quality that create multiple expansion opportunities, and have or are likely to demonstrate robust economics that ensure development irrespective of position within the global commodity cycles, or whether or not the deposit has been fully drilled out, or a feasibility study completed.

Standards drawn from industry experts (1) Singer and Menzie, 2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer, 1995; (5) Laznicka, 2010) have characterised "World Class" deposits at prevailing commodity prices. The relevant criteria for "World Class" deposits, adjusted to current long run commodity prices, are considered to be those holding or likely to hold more than 5 million tonnes of copper and/or more than 6 million ounces of gold with a modelled net present value of greater than USD 1 Billion.

The Company and its external consultants prepared an initial mineral resource estimate at the Cascabel Project in December 2017. Results are summarised in Table B attached.

The Mineral Resource Estimate was completed from 53,616m of drilling, approximately 84% of 63,500m metres drilled as of mid-December 2017, the cut-off date for the maiden resource calculation. There remains strong potential for further growth from more recent drilling results, and continue rapid growth of the deposit.

Any development or mining potential for the project remains speculative.

Drill hole intercepts have been updated to reflect current commodity prices, using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.63, determined using an updated copper price of USD3.00/pound and an updated gold price of USD1300/ounce. True widths of down hole intersections are estimated to be approximately 25-70%.

On the basis of the drilling results to date and the results of the Alpala Maiden Mineral Resource Estimate, the reference to the Cascabel Project as "World Class" (or "Tier 1") is considered to be appropriate. Examples of global copper and gold discoveries since 2006 that are generally considered to be "World Class" are summarised in TableA.

Referencescited in the text:

Table A: Tier 1 global copper and gold discoveries since 2006. This table does not purport to be exhaustive exclusive or definitive.

Table B: Alpala Mineral Resource Estimate updated effective 16 November 2018.

Notes:

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SOURCE: SolGold plc