Continental Gold Drills 2.7 metres @ 831 g/t Gold and 65 g/t Silver and Samples High Grade Gold in the Yaragua and San Agustin Vein Systems at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - Oct 3, 2013) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 28 diamond drill-holes and underground sampling in the Yaraguá and San Agustin vein systems, as part of the Company's ongoing exploration program at the Buriticá project in Antioquia, Colombia. Eight drill rigs are currently on site as part of the Company's Phase IV diamond drill program for 2013-2014, with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories under National Instrument 43-101 ("NI 43-101") guidelines.

Highlights (referenced in Figures 1 and 2)

Yaraguá Vein System

• All 27 underground drill-holes and underground sampling at the Yaraguá deposit were successful in infilling and extending individual veins.
  
• The remaining surface-collared hole, ten of the underground drill-holes and underground sampling of current and historical small scale workings have further defined the excellent prospectivity of the San Agustin vein system.
  
• Step-out drilling to the upper west of the NI 43-101 mineral resource envelope for the Yaraguá vein system in BUUY170 extended high-grade gold in two veins with true-width intercepts of:
  
  • 2.7 metres @ 830.6 g/t gold and 65 g/t silver (elevation of 1,507 metres); and
  • 3.45 metres @ 27.1 g/t gold and 11 g/t silver (elevation of 1,507 metres).
    
• Portions of several drill-holes, aimed at infilling the Yaraguá vein system, intersected vein domains with significantly higher grades and/or thicknesses than in the current mineral resource model (see "Technical Information" below). Such intercepts include:
  
  • 1 metre @ 329.5 g/t gold and 52 g/t silver (BUUY120, HWV-SAV package, elevation of 1,468 metres);
  • 1.3 metres @ 12.5 g/t gold and 122 g/t silver (BUUY120, VND, elevation of 1,429 metres);
  • 2.1 metres @ 34.8 g/t gold and 128 g/t silver, including 1 metre @ 66.3 g/t gold and 262 g/t silver (BUUY122, FWV, elevation of 1,505 metres);
  • 1.6 metres @ 35.2 g/t gold and 44 g/t silver (BUUY125, VNC, elevation of 1,287 metres);
  • 4.65 metres @ 13.7 g/t gold and 77 g/t silver, including 1.5 metres @ 31.8 g/t gold and 178 g/t silver (BUUY125, HWV, elevation of 1,278 metres);
  • 4.2 metres @ 13.8 g/t gold and 90 g/t silver (BUUY128, SAV, elevation of 1,370 metres);
  • 1.85 metres @ 93 g/t gold and 10 g/t silver (BUUY128, VNA, elevation of 1,320 metres);
  • 0.8 metres @ 34.7 g/t gold and 3 g/t silver (BUUY135, VNC2, elevation of 1,440 metres);
  • 4.35 metres @ 8.2 g/t gold and 20 g/t silver (BUUY135, SOF, elevation of 1,423 metres);
  • 3 metres @ 14 g/t gold and 3 g/t silver (BUUY143, SOF, elevation of 1,449 metres);
  • 1.7 metres @ 33.8 g/t gold and 32 g/t silver (BUUY143, HWV, elevation of 1,439 metres);
  • 0.5 metres @ 58.5 g/t gold and 12 g/t silver (BUUY150, VNBC, elevation of 1,499 metres);
  • 5.2 metres @ 6.9 g/t gold and 20 g/t silver, including 1 metre @ 19.4 g/t gold and 69 g/t silver (BUUY152, FWV, elevation of 1,469 metres);
  • 1.55 metres @ 15.2 g/t gold and 34 g/t silver (BUUY156, MU, elevation of 1,504 metres);
  • 8.4 metres @ 4.7 g/t gold and 12 g/t silver (BUUY156, MU2, elevation of 1,504 metres); and
  • 3 metres @ 6.1 g/t gold and 20 g/t silver (BUUY156, MU2, elevation of 1,504 metres).
    
• Underground channel sampling of historical workings in the upper Yaraguá system demonstrated continuity of high grades over significant strike lengths of northerly vein families. Although sampling was limited by the narrow tunnel widths, grades and/or thicknesses of sampled vein segments are typically greater than those in the current mineral resource model. Significant intervals include:
  
• 121.4 g/t gold and 775 g/t silver across 0.45 metres along 60 metres (San Antonio vein, elevation of 1,500 metres);
• 85.6 g/t gold and 1,020 g/t silver across 0.44 metres along 38 metres (San Antonio vein, elevation of 1,473 metres);
• 371.5 g/t gold and 2,950 g/t silver across 0.43 metres along 10 metres (San Antonio vein, elevation of 1,462 metres);
• 52.7 g/t gold and 388 g/t silver across 0.56 metres along 35 metres (San Antonio vein, elevation of 1,451 metres);
• 41.7 g/t gold and 642 g/t silver across 0.47 metres along 26 metres (San Antonio vein, elevation of 1,445 metres);
• 63.5 g/t gold and 596 g/t silver across 0.57 metres along 44 metres (Centena vein, elevation of 1,489 metres);
• 52.1 g/t gold and 846 g/t silver across 0.49 metres along 58 metres (Centena vein, elevation of 1,485 metres);
• 308.6 g/t gold and 1,535 g/t silver across 0.5 metres along 20 metres (Centena vein, elevation of 1,478 metres);
• 84 g/t gold and 775 g/t silver across 0.5 metres along 30 metres (Centena vein, elevation of 1,474 metres);
• 77.9 g/t gold and 466 g/t silver across 0.5 metres along 34 metres (Centena vein, elevation of 1,470 metres);
• 43.3 g/t gold and 215 g/t silver across 0.56 metres along 21 metres (NW-SE vein, elevation of 1,606 metres); and
• 34.2 g/t gold and 227 g/t silver across 0.58 metres along 37 metres (NW-SE vein, elevation of 1,596 metres).

San Agustin Vein System

• Several of the drill-holes intersected currently unmodeled vein domains in the San Agustin area. Significant intercepts include:
  
  • 3 metres @ 11.4 g/t gold and 21 g/t silver (BUUY123, elevation of 1,302 metres);
  • 4.2 metres @ 7.7 g/t gold and 48 g/t silver, including 0.7 metres @ 42.9 g/t gold and 97 g/t silver (BUUY125, elevation of 1,051 metres);
  • 0.5 metres @ 18.2 g/t gold and 166 g/t silver (BUUY125, elevation of 1,035 metres);
  • 1.8 metres @ 7.1 g/t gold and 23 g/t silver, (BUUY133, elevation of 1,152 metres); and
  • 1.6 metres @ 15 g/t gold and 37 g/t silver (BUUY153, elevation of 1,172 metres).
    
• BUSY344 encountered the most northerly vein families yet drilled in the San Agustin area, including:
  
  • 1 metre @ 4.35 g/t gold and 116 g/t silver (elevation of 1,461 metres).
    
• Further downhole and to the south, BUSY344 intersected several families of veins including:
  
  • 0.6 metres @ 6.9 g/t gold and 37 g/t silver (elevation of 1,097 metres).
    
• 100 to 200 metres further east of and at elevations 500 metres higher than the BUSY344 intercept, the Company sampled 780 metres of shallow tunnels in the central western San Agustin area; 23 of 85 samples returned grades better than 3 g/t gold and/or 100 g/t silver. Highlights of this sampling (for true widths averaging 0.5 metres) include:
  
  • 121 g/t gold and 629 g/t silver (elevation of 1,592 metres);
  • 21.1 g/t gold and 209 g/t silver (elevation of 1,586 metres);
  • 18.4 g/t gold and 55 g/t silver (elevation of 1,606 metres); and
  • 16.8 g/t gold and 26 g/t silver (elevation of 1,606 metres).
    
• Two main vein orientations were noted at San Agustin from the underground sampling. Additionally, sparse drilling and surface sampling has highlighted the potential for the system to have significant strike and vertical extents. The Company has initiated planning for an underground drilling campaign for San Agustin and expects to commence drilling prior to year-end.

"Our investment in exploration and drilling continues to deliver results and we look forward to delivering a revised mineral resource estimate near the end of the year," commented Ari Sussman, CEO.

Details

Continental's 100%-owned, 58,773-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 Yaraguá and Veta Sur systems, the two most extensively explored of these areas, 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-outlined along 700 metres of strike and 1,300 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 NI 43-101. This release documents the results of infill drilling and underground sampling of the upper Yaraguá vein system and also extension drilling into, and underground sampling of, the San Agustin vein systems to the north of the Yaraguá vein system.

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

Drilling was largely from underground developments in western, central and eastern Yaraguá. Most holes were drilled to the north to infill the central and northern Yaraguá vein families and longer holes also tested for the southern and central vein packages in the San Agustin area. A series of short horizontal holes were drilled in central Yaraguá mainly to examine areas between the main Yaraguá vein families.

BUUY170 was drilled southwards below the Diatreme Fault in western Yaraguá and intersected two intervals of high-grade gold:

• 2.7 metres @ 830.6 g/t gold and 65 g/t silver (elevation of 1,507 metres); and
• 3.45 metres @ 27.1 g/t gold and 11 g/t silver (elevation of 1,507 metres).

These (approximately true-width) intercepts are substantially higher grade and thicker than VNC and VNBC vein domains at the western-most edge of the current mineral resource block model.

BUUY120 was also drilled into western Yaraguá, above the Diatreme Fault. Several intercepts in the central and northern Yaraguá vein families were significantly higher grade or thicker than in comparable areas of vein domains in the current mineral resource model. Such intercepts include:

• 4.5 metres @ 5.2 g/t gold and 6 g/t silver (VNBC, elevation of 1,501 metres);
• 1 metre @ 329.5 g/t gold and 52 g/t silver (HWV-SAV package, elevation of 1,468 metres); and
• 1.3 metres @ 12.5 g/t gold and 122 g/t silver (VND, elevation of 1,429 metres).

The most northerly intercept in BUUY120 (from 154.5 metres down-hole, 0.8 metres @ 6.1 g/t gold and 33 g/t silver) is in the San Agustin area and outside of the current mineral resource envelope.

A fan of drill-holes (BUUY122, BUUY128, BUUY135, BUUY143, BUUY150 and BUUY152) examined the central and northern vein families in central Yaraguá and several of these drill-holes continued into the southern San Agustin vein system. Intercepts of significantly higher grade or thickness than in comparable areas of vein domains in the current Yaraguá mineral resource model include:

• 2.1 metres @ 34.8 g/t gold and 128 g/t silver, including 1 metre @ 66.3 g/t gold and 262 g/t silver (BUUY122, FWV, elevation of 1,505 metres);
• 0.5 metres @ 22.3 g/t gold and 223 g/t silver (BUUY122, FWV, elevation of 1,505 metres);
• 4.2 metres @ 13.8 g/t gold and 90 g/t silver (BUUY128, SAV, elevation of 1,370 metres);
• 1.85 metres @ 93 g/t gold and 10 g/t silver (BUUY128, VNA, elevation of 1,320 metres);
• 0.8 metres @ 34.7 g/t gold and 3 g/t silver (BUUY135, VNC2, elevation of 1,440 metres);
• 4.35 metres @ 8.2 g/t gold and 20 g/t silver (BUUY135, SOF, elevation of 1,423 metres);
• 3 metres @ 14 g/t gold and 3 g/t silver (BUUY143, SOF, elevation of 1,449 metres);
• 1.7 metres @ 33.8 g/t gold and 32 g/t silver (BUUY143, HWV, elevation of 1,439 metres);
• 0.5 metres @ 58.5 g/t gold and 12 g/t silver (BUUY150, VNBC, elevation of 1,499 metres);
• 0.5 metres @ 20.8 g/t gold and 5 g/t (BUUY152, VNBC, elevation of 1,503 metres); and
• 5.2 metres @ 6.9 g/t gold and 20 g/t silver, including 1 metre @ 19.4 g/t gold and 69 g/t silver (BUUY152, FWV, elevation of 1,469 metres).

Intercepts listed in Table I for BUUY122 (from 218 metres, down-hole), BUUY128 (from 285.5 metres, down-hole), BUUY135 (from 334.5 metres, down-hole), BUUY143 (from 197.45 metres, down-hole) and BUUY152 (from 169.5 metres, down-hole) are outside of and to the north of the current mineral resource envelope. These intercepts, in the southern San Agustin vein families, include:

• 1.25 metres @ 5.8 g/t gold and 124 g/t silver (BUUY128, elevation of 1,251 metres);
• 2.5 metres @ 4.4 g/t gold and 56 g/t silver (BUUY135, elevation of 1,194 metres);
• 1.05 metres @ 2.3 g/t gold and 2244 g/t silver (BUUY143, elevation of 1,334 metres);
• 1.1 metres @ 6.9 g/t gold and 2 g/t silver (BUUY143, elevation of 1,210 metres); and
• 1.8 metres @ 3.5 g/t gold and 33 g/t silver (BUUY152, elevation of 1,428 metres).

Intercepts from a series of short, horizontal drill-holes (BUUY127, BUUY129, BUUY131, BUUY132, BUUY136, BUUY139, BUUY141, BUUY145, BUUY148, BUUY151, BUUY156, BUUY158 and BUUY161) in central Yaraguá are listed in Table I. These drill-holes were mostly aimed at examining between the main vein families for additional veins and more disseminated mineralization, intersecting mainly low-grade or narrow mineralization. Where the short holes intersected veins included in the current mineral resource model, intercepts were similar in grades and thicknesses to model values, except for BUUY156 intercepts in the Murcielagos vein family which intersected:

• 1.55 metres @ 15.2 g/t gold and 34 g/t silver (MU, elevation of 1,504 metres);
• 8.4 metres @ 4.7 g/t gold and 12 g/t silver (MU2, elevation of 1,504 metres); and
• 3 metres @ 6.1 g/t gold and 20 g/t silver (MU3, elevation of 1,504 metres).

Drilling in eastern Yaraguá (BUUY119, BUUY123, BUUY125, BUUY133, BUUY144 and BUUY153) focused on infilling the central and northern Yaraguá vein families and clarifying the southern San Agustin vein systems to the north of Yaraguá. Grades and apparent thicknesses of intercepts were generally similar to those of the current mineral resource model, although BUUY125 encountered higher grades and/or thicknesses in several vein domains, including:

• 1.05 metres @ 12.3 g/t gold and 101 g/t silver (VNB, elevation of 1,317 metres);
• 1.6 metres @ 35.2 g/t gold and 44 g/t silver (VNC, elevation of 1,287 metres); and
• 4.65 metres @ 13.7 g/t gold and 77 g/t silver, including 1.5 metres @ 31.8 g/t gold and 178 g/t silver (HWV, elevation of 1,278 metres).

Intercepts listed in Table I for BUUY123 (from 186 metres, down-hole), BUUY125 (from 312 metres, down-hole), BUUY133 (from 261.2 metres, down-hole), BUUY144 (from 175.2 metres, down-hole) and BUUY153 (from 169.5 metres, down-hole) are outside of and to the north of the current mineral resource envelope. These intercepts, in Yaraguá extensions and San Agustin vein families, include:

• 3 metres @ 11.4 g/t gold and 21 g/t silver (BUUY123, southern San Agustin, elevation of 1,302 metres);
• 4.2 metres @ 7.7 g/t gold and 48 g/t silver, including 0.7 metres @ 42.9 g/t gold and 97 g/t silver (BUUY125, VNA extension?, elevation of 1,051 metres);
• 0.5 metres @ 18.2 g/t gold and 166 g/t silver (BUUY125, southern San Agustin, elevation of 1,035 metres);
• 1.8 metres @ 7.1 g/t gold and 23 g/t silver (BUUY133, southern San Agustin, elevation of 1,152 metres); and
• 1.6 metres @ 15.0 g/t gold and 37 g/t silver (BUUY153, central San Agustin, elevation of 1,172 metres).

Underground channel sampling demonstrated continuity of high grades of gold and silver over significant strike lengths of northerly vein families in the upper Yaraguá vein system (Table II). Although sampling was limited by the narrow tunnel widths, grade and/or thicknesses of sampled vein segments are typically greater than those in the current mineral resource model.

BUSY344 was drilled from the north in western San Agustin and encountered the most northerly vein families yet drilled in the San Agustin area, including:

• 1.0 metre @ 4.35 g/t gold and 116 g/t silver (elevation of 1,461 metres).

Further to the south, from 226.8 to 725.8 metres down-hole (Table I), BUSY344 intersected several families of veins in the central to southern San Agustin areas. Intercepts exhibited both high and low silver to gold ratios, including:

• 0.60 metres @ 6.9 g/t gold and 37 g/t silver (elevation of 1,097 metres).

100 to 200 metres further east of and at elevations 500 metres higher than this BUSY344 intercept, the Company sampled 780 metres of shallow tunnels in the central western San Agustin area. 23 of 85 samples returned grades better than 3 g/t gold and/or 100 g/t silver, in both main vein orientations. Highlights of this sampling (for true widths averaging 0.5 metres, limited by narrow tunnel widths) are presented in Table III.

In view of the results of underground sampling and drilling in this release and previously-announced drilling and surface sampling, it appears that the southern and central San Agustin vein families have strike lengths in excess of 600 metres and are open to the east, west and to depth.

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 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, whereas BQ core samples are full core. 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 Ltd. 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.

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.

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, and exploration and mine development plans, 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.

Figure 1 - Plan View of new drilling and underground sampling highlights, showing the surface projection of veins in the October 2012 Yaraguá mineral resource model on geology-topography can be viewed here: http://media3.marketwire.com/docs/902324fig1.pdf

Figure 2 - Long Section, Yaraguá-San Agustin, showing new drilling and underground sampling highlights against the outlines of the October 2012 Yaraguá mineral resource envelope can be viewed here: http://media3.marketwire.com/docs/902324fig2.pdf