Drilling At The Cascabel Copper-Gold Project in Ecuador

LONDON - SolGold reported an update on the drilling results of Holes 23R-D1, and 24-D1R and the progress of drilling at Cascabel, the Company’s 85% owned copper-gold porphyry project in Ecuador. Nicholas Mather, the Chief Executive Officer said, “Hole 23R-D1 and 24-D1R assay results demonstrate strong potential for significant extensions to the Alpala Deposit into the Alpala East and Alpala Southeast sectors. Current drilling at Alpala Northwest, following up on the discovery of major extensions northwest of the Alpala Deposit in Hole 26, is proving fruitful with Hole 26-D2 currently intersecting strongly mineralized diorite porphyry.  Rigs 6 and 7 have recently arrived at site and this is expected to expedite drilling at Alpala Central, Alpala Northwest and Alpala West, ahead of the arrival of more rigs to bring the project total to 12 rigs by January 2018.  We have not yet found the limits of the system at Alpala and we believe that our growing understanding of the Alpala system, and the expansion of the drilling fleet, will lead to rapid discovery of major extensions at high priority targets, including Alpala Northwest, Alpala East, Alpala West, Alpala Southeast.  In fact we are scheduled to drill 126,000m in 2018, so you can see there is exponential growth potential which is expected in the short-term.  We have a strong desire to drill test the exciting and untested satellite targets at, Carmen, Trivinio, Parambas Aguinaga, Cristal, Moran, and Tandayama-America, which are scheduled for drill testing on completion of drill data collection for the Alpala Maiden Resource Estimate, and on completion of Spartan-Orion hybrid 3DIP Survey and maturing 3D MVI magnetic modeling.  This work is being expedited and the expansion of the drilling fleet is opening these doors for us.”

SolGold’s Alpala deposit continues to grow with each new drill hole as drilling focuses on high grade porphyry centers at Alpala Northwest, Alpala Central and Alpala Southeast.  Over 50,000m of drilling has been completed to date along the greater Alpala trend, with the use of the directional drilling techniques for deviated path holes from existing parent holes (Devicotm), delivering significant time and cost advantages. The Company is directing drilling capability and operations currently to the collection of drill data to be used in the delivery of a Maiden Resource Estimate by the end of 2017, and is preparing to make follow up resource estimation updates through 2018 as drilling continues to expand the resource at Alpala as well as identify new resources at satellite prospects such as Aguinaga, Cristal, Moran, and Tandayama-America.