Continental Gold Drills 10.5 metres @ 108 g/t Gold in Yaragua and Hits with Step-out Drilling in the Yaragua and San Agustin Systems at its Buritica Project, Colombia

Continental Gold Limited (CNL.TO)(CGOOF) ("Continental" or the "Company") is pleased to announce results for 13 diamond drill-holes in the Yaraguá and San Agustin vein systems, as part of the Company's ongoing exploration program at the Buriticá Project in Antioquia, Colombia. Nine drills are currently on site as part of the Company's Phase IV diamond drill program for 2013.

Highlights (Referenced in Figures 1 and 2)

• Drill-hole BUUY114 intersected:
  10.5 metres @ 108 g/t gold and 96 g/t silver, including 2.63 metres @ 29 g/t gold and 142 g/t silver and 2.15 metres @ 473.6 g/t gold and 186 g/t silver (elevation of 1,339 metres, PRE & VNB vein packages). This intercept, characterized by Stage II visible gold-bearing mineralization, is interpreted to be part of a broad high-grade subzone across the central vein family in eastern Yaraguá and is open vertically.

• Step-out drilling in BUSY340, beginning from the northern-most drill pad at the project and drilling southward, intersected several vein domains in both the San Agustin and Yaraguá vein systems. Significant intercepts at San Agustin include:
  • 0.72 metres @ 31.0 g/t gold and 3 g/t silver (the most northerly vein intersected to date, elevation of 1,525 metres); and
  • 0.5 metres @ 12.0 g/t gold and 31 g/t silver (elevation of 984 metres, some 500 metres higher than intercepts in previous drilling).
• Some 200 metres west of the current Yaraguá mineral resource envelope, BUSY340 made two broad intercepts further down-hole that include high-grade gold intervals: 
  • 15.4 metres @ 6.7 g/t gold and 10 g/t silver, including 2.6 metres @ 15.9 g/t gold and 14 g/t silver and 4.15 metres @ 11.1 g/t gold and 11 g/t silver (elevation of 844 metres); and
  • 9.8 metres @ 10.4 g/t gold and 22 g/t silver, including 2.1 metres @ 13.7 g/t gold and 15 g/t silver and 2.55 metres @ 25.1 g/t gold and 59 g/t silver (elevation of 804 metres).
    
    The latter intercept is 190 vertical metres above the broad high-grade intersection in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, including 1.6 metres @ 192 g/t gold and 91 g/t silver; see November 12, 2012 news release). Both BUSY340 intercepts could represent west extensions of the Yaraguá vein system, or a vein system with a large vertical extent but with a more northerly orientation. Follow-up drilling is underway with an additional drill-hole nearing completion. 

• Several drill-holes transecting the Yaraguá vein system also intersected vein domains with significantly higher grades and/or thicknesses than in the current mineral resource model (see Technical Information below). Intercepts in eastern Yaraguá include: 
  • 3.81 metres @ 8.2 g/t gold and 33 g/t silver (BUUY114, elevation of 1,331 metres, VNB package); and
  • 3.95 metres @ 30.2 g/t gold and 100 g/t silver, including 2 metres @ 53.8 g/t gold and 149 g/t silver (BUUY114, elevation of 1,324 metres, VNB-VNC).
• Intercepts in central-western Yaraguá include:
  • 1.8 metres @ 8.6 g/t gold and 39 g/t silver (BUSY335, elevation of 1,105 metres, FWV package);
  • 0.5 metres @ 21.2 g/t gold and 23 g/t silver (BUUY113, elevation of 1,498 metres, VNBC); 
  • 11.5 metres @ 9.5 g/t gold and 49 g/t silver, including 2.05 metres @ 23.3 g/t gold and 165 g/t silver and 1.15 metres @ 20.7 g/t gold and 124 g/t silver (BUUY113, elevation of 1,412 metres, SA-HWV);
  • 0.54 metres @ 190 g/t gold and 119 g/t silver (BUUY117, elevation of 1,437 metres, SOF);
  • 6.03 metres @ 6 g/t gold and 20 g/t silver, including 1.1 metres @ 20.4 g/t gold and 60 g/t silver (BUUY117, elevation of 1,416 metres, HWV); and
  • 5.05 metres @ 5.1 g/t gold and 18 g/t silver, including 1.1 metres @ 10.8 g/t gold and 59 g/t silver (BUUY111, elevation of 1,471 metres, MU).
• Drill-holes in eastern, central and western Yaraguá intersected vein domains outside of the current Yaraguá mineral resource envelope, extending these vein domains to depth or laterally. Significant intercepts in eastern Yaraguá include: 
  • 2.38 metres @ 8.9 g/t gold and 5 g/t silver, including 1 metres @ 18.9 g/t gold and 6 g/t silver (BUUY105, elevation of 1,171 metres, FWV package);
  • 0.5 metres @ 66.8 g/t gold and 5 g/t silver (BUUY108, elevation of 1,177 metres, FWV); and
  • 0.5 metres @ 4.5 g/t gold and 511 g/t silver (BUUY114, elevation of 865 metres, new silver-rich vein).
• In central Yaraguá, BUSY339 intersected:
  • 3 metres @ 11.9 g/t gold and 11 g/t silver, including 0.8 metres @ 38.7 g/t gold and 32 g/t silver (elevation of 1,273 metres, MUS1);
  • 1.35 metres @ 29.6 g/t gold and 164 g/t silver (elevation of 1,199 metres, MUS);
  • 8.28 metres @ 6.5 g/t gold and 8 g/t silver, including 1.5 metres @ 21.1 g/t gold and 29 g/t silver (elevation of 1,047 metres, PRE); and
  • 0.6 metres @ 25.7 g/t gold and 13 g/t silver (elevation of 996 metres, VNC).
• Additionally, in central-western Yaraguá, significant intercepts outside of the current mineral resource envelope include: 
  • 0.5 metres @ 28.2 g/t gold and 37 g/t silver (BUSY335, elevation of 997 metres, VNA);
  • 0.8 metres @ 15.6 g/t gold and 31 g/t silver (BUUY117, elevation of 1,310 metres, VNA); and
  • 1.15 metres @ 11.4 g/t gold and 12 g/t silver (BUUY104, elevation of 1,306 metres, MUS2).

"The Company continues to be aggressive with its exploration efforts with nine drill rigs turning, and results are impressive," commented Ari Sussman, CEO. "Additionally, underground development and detailed engineering continue within planned parameters, further details of which will be provided in the coming weeks."

Details

Continental's 100%-owned, 57,594-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 570 metres of strike and 1,180 vertical metres. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. See "About Continental Gold" (below) for a précis of the updated mineral resource estimates for the Buriticá project prepared in accordance with National Instrument 43-101 ("NI 43-101"). This news release documents the results of infill and extension drilling of the Yaraguá vein systems and further drilling to the north of this system into the San Agustin area.

Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

Three holes (BUUY105, BUUY108 and BUUY114, Figures 1 and 2) were drilled in eastern Yaraguá to infill and extend the Yaraguá mineral resource model and also to examine potential extensions into the eastern San Agustin area. Each drill-hole intersected multiple families of veins. Intercepts within the current mineral resource envelope were generally consistent with the model. However, BUUY114 made several intersections of significantly higher grade and thickness than for comparable locations in the current mineral resource model, including:

• 10.5 metres @ 108 g/t gold and 96 g/t silver, including 2.63 metres @ 29 g/t gold and 142 g/t silver and 2.15 metres @ 473.6 g/t gold and 186 g/t silver (from 34.5 metres down-hole, elevation of 1,339 metres, PRE & VNB packages).

This intercept, characterized by Stage II visible gold-mineralization, is interpreted to be part of a broad high-grade subzone across the central vein family in eastern Yaraguá and is open vertically. Other significant intercepts in BUUY114 include:

• 3.81 metres @ 8.2 g/t gold and 33 g/t silver (elevation of 1,331 metres, VNB package); and
• 3.95 metres @ 30.2 g/t gold and 100 g/t silver, including 2.0 metres @ 53.8 g/t gold and 149 g/t silver (elevation of 1,324 metres, VNB-VNC).

Each of the eastern Yaraguá holes also intersected the northerly vein packages below or to the north of the current mineral resource envelope. Significant intercepts, representing the extensions of currently modeled veins, include:

• 2.38 metres @ 8.9 g/t gold and 5 g/t silver, including 1 metres @ 18.9 g/t gold and 6 g/t silver (BUUY105, elevation of 1,171 metres, FWV package); and
• 0.5 metres @ 66.8 g/t gold and 5 g/t silver (BUUY108, elevation of 1,177 metres, FWV).

Intersections (Table I) in BUUY105 (from 300 metres down-hole), BUUY108 (from 320 metres down-hole) and BUUY114 (from 298 metres down-hole), north of VNA and representing the south-eastern San Agustin vein families, include:

• 0.5 metres @ 4.5 g/t gold and 511 g/t silver (BUUY114, elevation of 865 metres, new silver-rich vein).

BUSY339 was drilled to transect deeper parts of the central Yaraguá system. Near collar, at relatively shallow depth, the drill-hole intersected four silver-rich veins (from 205-320 metres down-hole, Table I). Further north and deeper, the drill-hole cut the depth extensions of all currently modeled vein domains, with intercepts all below the current mineral resource envelope. Highlighted intercepts include:

• 3.0 metres @ 11.9 g/t gold and 11 g/t silver, including 0.8 metres @ 38.7 g/t gold and 32 g/t silver (elevation of 1,273 metres, MUS1);
• 1.35 metres @ 29.6 g/t gold and 164 g/t silver (elevation of 1,199 metres, MUS);
• 8.28 metres @ 6.5 g/t gold and 8 g/t silver, including 1.5 metres @ 21.1 g/t gold and 29 g/t silver (elevation of 1,047 metres, PRE); and
• 0.6 metres @ 25.7 g/t gold and 13 g/t silver (elevation of 996 metres, VNC).

BUSY339 intersections below 1,128 metres down-hole (Table I) represent vein domains deep in the San Agustin system.

BUSY335 and BUSY341 were drilled to transect the central-western Yaraguá system at depth. BUSY341 was lost at shallow depth but this drill-hole (from 189 metres down-hole, Table I) and BUSY335 (to 465 metres down-hole, Table I) intersected silver-rich veins in Yaraguá South. BUSY335 made significant intercepts outside of the current mineral resource envelope, including:

• 1.9 metres @ 6.9 g/t gold and 16 g/t silver (elevation of 1,262 metres, MU vein package);
• 0.5 metres @ 28.2 g/t and 37 g/t silver (elevation of 997 metres, VND);

and significant intercepts within the envelope:

• 1.8 metres @ 8.6 g/t gold and 39 g/t silver (elevation of 1,105 metres, SA package).

Two holes (BUUY113 and BUUY117) to test the central and northern vein families were also drilled in central-western Yaraguá. Both drill-holes encountered some intercepts with significantly higher grades and/or thicknesses than in the current mineral resource model, including:

• 0.5 metres @ 21.2 g/t gold and 23 g/t silver (BUUY113, elevation of 1,498 metres, VNBC);
• 11.5 metres @ 9.5 g/t gold and 49 g/t silver, including 2.05 metres @ 23.3 g/t gold and 165 g/t silver and 1.15 metres @ 20.7 g/t gold and 124 g/t silver (BUUY113, elevation of 1,412 metres, SA-HWV);
• 0.5 metres @ 29.2 g/t gold and 43 g/t silver (BUUY113, elevation of 1,384 FWV);
• 0.54 metres @ 190 g/t gold and 119 g/t silver (BUUY117, elevation of 1,437 metres, SOF); and
• 6.03 metres @ 6 g/t gold, 20 g/t silver, including 1.1 metres @ 20.4 g/t gold and 60 g/t silver (BUUY117, elevation of 1,416 metres, HWV).

BUUY117 also intersected the following significant intercept outside the current mineral resource envelope:

• 0.8 metres @ 15.6 g/t gold and 31 g/t silver (BUUY117, elevation of 1,310 metres, VNA).

Four holes (BUUY104, BUUY106, BUUY107 and BUUY111) were also drilled in central-western Yaraguá to infill the central and southern vein packages in this area. Intercepts, with significantly higher grades and/or thicknesses than in the current mineral resource model, include:

• 10.4 metres @ 4.2 g/t gold and 16 g/t silver, including 0.5 metres @ 14.2 g/t gold and 25 g/t silver (BUUY104, elevation of 1,463 metres, MU4/VNE); and
• 5.05 metres @ 5.1 g/t gold and 18 g/t silver, including 1.1 metres @ 10.8 g/t gold and 59 g/t silver (BUUY111, elevation of 1,471 metres, MU).

Significant intercepts outside of the current mineral resource envelope include:

• 1.15 metres @ 11.4 g/t gold and 12 g/t silver (BUUY104, elevation of 1,306 metres, MUS2).

BUSY340 was drilled to transect the western San Agustin system at shallow to moderate depths and also through western Yaraguá at greater depths (Figure 1). From collar to about 870 metres down-hole (Table 1), BUSY340 intersected several vein families in the San Agustin system. Higher-grade intercepts include:

• 0.72 metres @ 31 g/t gold and 3 g/t silver (the most northerly vein intersected to-date, elevation of 1,525 metres);
• 0.5 metres @ 12 g/t gold and 31 g/t silver (elevation of 984 metres);
• 0.5 metres @ 8.8 g/t gold and 2 g/t silver (elevation of 974 metres); and
• 1.63 metres @ 6.2 g/t gold and 63 g/t silver (elevation of 959 metres).

The latter intercepts align vertically with surface sampling and also with intercepts in BUSY324 (see February 12, 2013 news release) some 100-150 metres to the east and at 400-500 metres lower elevations, consistent with large depth extents of mineralization in western San Agustin.

Further down-hole and to the south, some 200 metres west of the current Yaraguá mineral resource envelope, BUSY340 made several significant intercepts, including:

• 15.4 metres @ 6.7 g/t gold and 10 g/t silver, including 2.6 metres @ 15.9 g/t gold and 14 g/t silver and 4.15 metres @ 11.1 g/t gold and 11 g/t silver (elevation of 844 metres);
• 1.05 metres @ 9.3 g/t gold and 45 g/t silver (elevation of 834 metres);
• 9.8 metres @ 10.4 g/t gold and 22 g/t silver, including 2.1 metres @ 13.7 g/t gold and 15 g/t silver and 2.55 metres @ 25.1 g/t gold and 59 g/t silver (elevation of 804 metres); and
• 1 metre @ 9.1 g/t gold and 60 g/t silver (elevation of 794 metres).

The latter two intercepts are 190 vertical metres above the broad high-grade intersection (65.1 metres @ 10.4 g/t gold and 9 g/t silver, including 1.62 metres @ 192 g/t gold and 91 g/t silver) in BUSY291 (see November 12, 2012 news release); Figure 2. The BUSY340 intercepts could represent west extensions of the deep Yaraguá system or a vein system with large vertical extent but more northerly orientation.

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with over 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc. For additional technical information on the Buriticá project, please refer to the technical report entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia", dated November 15, 2012 with an effective date of October 22, 2012, prepared by Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. A Phase IV drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.

An animation video providing an overview of the Buriticá project and the exploration potential is available in the following link: http://bit.ly/Z6HBh9. Please note that any future production decision will be based on the positive outcome of a pre-feasibility study in Q4 2014/Q1 2015.

Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, and timing of the commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

To view accompanying Figures 1 and 2, visit the following links:

http://media3.marketwire.com/docs/CNL_Figure1.jpg

http://media3.marketwire.com/docs/CNL_Figure2.jpg

Continental Gold Limited
Paul Begin
Chief Financial Officer
+1.416.583.5610
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www.continentalgold.com