Gabbs Project Activities Underway

VANCOUVER - P2 Gold Inc. reported that activities underway at its wholly-owned gold-copper Gabbs Project located on the Walker-Lane Trend in Nevada. The Bureau of Land Management has reviewed the Company’s Notice to Conduct Exploration Activities on the Sullivan and Car Body Zones at the Gabbs Project and determined it to be complete. The Company has posted the required reclamation bond and is now in a position to commence drilling at the Sullivan and Car Body Zones.

The Company recently filed a separate Notice to Conduct Exploration Activities with the Bureau of Land Management for the Lucky Strike Zone and the northwest part of the Gabbs Project.

The Phase One Drill Program has been expanded to include 1,000 meters of diamond drilling in addition to the planned 8,000 meters of reverse circulation (“RC”) drilling. A diamond drill is expected to mobilize to site in mid-July. In addition to analytical data, the diamond drilling will provide information to confirm the geological model for the Sullivan and Car Body zones and drill core for additional metallurgical test work.

The Company has entered into an agreement with a Nevada-based RC drill contractor for the 8,000-meter RC drill program. The contractor expects to mobilize a RC drill rig to site later this quarter.

A gradient induced polarization (“IP”) geophysical survey has been completed over the Sullivan Zone to develop a signature profile of the known mineralization and to highlight potential extensions of the mineralization as the zone remains open. A gradient IP geophysical survey is especially well suited for defining near surface mineralization that can be exploited by open pit mining methods. The survey comprises 16-line kilometers covering an area measuring 1 kilometer by 1.5 kilometers. The results of the survey will be reported following analysis of the data.

From 1970 through 2011, exploration activities were carried out on the Gabbs Project by a number of operators. Historical geophysical work included regional gravity and magnetic surveys, a property scale ground magnetic survey and an orientation IP survey. This work showed that the Sullivan and Lucky Strike zones are associated with prominent magnetic highs, which become more subtle over the extension of the zones where the historical drilling indicates they are open at depth. Re-interpretation of the ground magnetic data has also identified two elliptical features which are potentially indicative of the deeper source for the surface mineralization.

In addition to the ground geophysics, a satellite hyperspectral alteration survey was completed over the Gabbs Project to assist regional mapping and potentially identify sources of known surface mineralization. As expected, both the Sullivan and Lucky Strike areas host a core of sericite alteration surrounded by chlorite/epidotes alteration. The alteration halo at Lucky Strike also has a very strong correlation with one of the elliptical magnetic features providing further evidence that this feature is potentially related to a deep intrusive source for the surface mineralization.