Gold Standard Acquiring Balance Of Pinon Deposit

VANCOUVER - Gold Standard Ventures Corp. has entered into a binding letter of intent (LOI) with Scorpio Gold Corp to acquire the remaining portion of the highly prospective Pinion Gold Deposit which is contiguous to the south of the Company’s flagship Railroad Gold Project in Elko County, Nevada. The acquisition of the remaining percentages of Pinion completes Gold Standards efforts to consolidate the greater Railroad District under single ownership for the first time in its history.

In our view, acquiring the Pinion Deposit and completing the Railroad land position puts us firmly in control of one of the premier undeveloped land packages on the Carlin Trend. Our growing North Bullion Deposit exhibits the characteristics of a classical, large, higher-grade North Carlin-style occurrence, stated Jonathan Awde, President and CEO of Gold Standard. Pinion provides us with a very different development option near-surface oxide deposit, which would typically have a shorter path to development as well as lower capital and operating costs. We think this is a strategically important addition to our asset base in the current environment.

Upfront consideration for the acquisition will consist of cash payments of C$6,000,000 and 5,500,000 GSV common shares. Concurrent with the acquisition, Gold Standard has engaged Macquarie Capital Markets Canada Ltd. as lead agent and lead arranger to raise, by way of a best efforts private placement, a minimum C$8 million, subject to an agent’s option to increase the Offering by up to 15% until 48 hours prior to closing, to finance the acquisition of Pinion and for working capital and general corporate purposes.  The Offering will be subject to certain conditions including the receipt of all necessary approvals including the approval of the TSX-V and the NYSE MKT.

The acquisition of the Pinion deposit and surrounding area represents an important Gold Standard milestone. The Carlin Trend has four erosional windows where gold-bearing stratigraphy comes close enough to surface to make exploration and production more economically feasible. Railroad/Pinion is the last of these windows to be developed. This deal gives us control of all the discovery opportunities and future mining development in this fourth window. We are very confident that a modest drill program of 40 to 80 shallow holes added to the current total of more than 330 holes will enable a Qualified Person to generate a NI 43-101 compliant resource estimate at Pinion stated David Mathewson, Vice-President of Exploration for Gold Standard.

GSV acquired an approximate 51% ownership of the Pinion District last year from private interests, as well as valuable surface and water rights which are important to the Pinion deposit development. We have targeted the Pinion District for many years based on the previous work by Newmont and others. Completing the assembly of this much sought-after land position is, in our view, a singularly valuable contribution to shareholder value, stated Jonathan Awde.