Gabbs Project PEA Provides Solid Plan For Advancement

VANCOUVER - P2 Gold Inc. reported on the Preliminary Economic Assessment (PEA) on its wholly-owned gold-copper Gabbs Project located on the Walker-Lane Trend in Nevada.

PEA Highlights: 1) Open pit, heap leach operation focused predominantly on oxide gold and copper Mineral Resources (Phase One), mining 43.4 million leachable tonnes and 102.3 million waste tonnes. 2) After-tax net present value (5% discount rate) of US$163.1 million and internal rate of return of 16.7% at US$1,950 gold and $4.50 copper. 3) Mine life of 11.1 years, with an average processing rate of 11,000 tonnes per day. 4) LOM gold equivalent production of 837,000 ounces (43.4 million tonnes @ 0.54 g/t gold and 0.25% copper) and LOM gold production of 562,100 ounces. 5) Estimated pre-production capital cost, including contingencies, of US$230.2 million.

"The PEA provides a solid plan for advancing Phase One development at Gabbs, where we are taking a phased approach to production," commented Joe Ovsenek, President and CEO of P2. "With an initial focus primarily on the oxide resources, we can shorten and simplify the path to production with an open pit, heap leach operation. Our next goal is to optimize the mine plan and capex, evaluate contract mining and complete additional metallurgy, which we believe will significantly increase the rate of return at lower metal prices. In addition, Gabbs has considerable oxide Mineral Resource expansion potential to extend Phase One operations beyond that contemplated in the PEA. Phase Two will focus on the development of the sulphide mineralization which sits below the oxide mineralization. Overall, we expect Gabbs to be a long-life gold and copper mine as the oxide mineralization is expanded and the sulphide mineralization is brought online."