Provenance Gold Enters LOI To Form Joint Venture For Development Of Silver Bow Property

VANCOUVER - Provenance Gold Corp. reported that the Company is now drill ready on its newly acquired White Rock property in addition to its Silver Bow property, both in Nevada. Provenance acquired the White Rock gold property in northeastern Nye County earlier this year and then expanded the property to a total of 258 claims comprising 5,160 acres. This expansion resulted from a new understanding of the gold system after review of historical drill logs and the Company's field work. This new understanding has identified what the Company anticipates being a major gold mineralization system that starts at the surface. The Company believes the property hosts a large structurally controlled, sediment-hosted gold system similar to the Black Pine mine in nearby Idaho. The property is now drill-ready with the initial program designed to verify and expand on the historically identified gold zones, and to confirm the new mineralization model.

Provenance also controls the Silver Bow property east of Tonopah, Nevada. Based on the Company's review of historic information, its subsequent field work and a new understanding of the extensive mineral system, the Company believes Silver Bow contains a major zoned gold and silver system with large specific exploration targets. Provenance has identified extensive areas of strong shallow gold and silver mineralization within a large caldera and flow-dome related gold and silver system that is exposed on the surface, plus additional deep high-grade targets. An initial staged drilling program has been prepared, and this property is also drill-ready with a drill program planned to commence in January.

In addition, Provenance has signed a Letter of Intent (LOI) with Palayan Resources, Inc. It is anticipated that Palayan and Provenance will form a Joint Venture in which Palayan will receive a 49.5% interest upon funding of an initial 20-hole drill program on Provenance's Blue Horse property, within Silver Bow.

Rauno Perttu, CEO, said, "We have worked diligently to get both these properties to the drill ready stage and are exited to have the opportunity through funding from Palayan to begin drilling the Silver Bow property in January. With the success of the Silver Bow drilling program, we should be in a good position to drill the White Rock property shortly thereafter. We believe both properties have the likelihood to contain large ore systems that will allow us to build a strong base for the longevity of the Company."