True Gold Mining Inc. Reports Q2 2015 Financial & Operating Results

VANCOUVER, August 24, 2015 - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") reported the financial results and business highlights for the six months ended June 30, 2015. The Company's focus is on completing construction and operating the low cost Karma Mine with a strategy to become a mid-tier producer through organic and strategic growth opportunities.


SECOND QUARTER HIGHLIGHTS AND SUBSEQUENT EVENTS

Over the second quarter the Company made significant progress at the Karma mine.


Project Construction Update:

The Karma Mine is in full construction with over 600 staff on site and on track for first gold pour by the end of Q1 2016. Overall the project is approximately 62% complete, as at July 31, 2015. Noteworthy activities commenced or completed include:


Earthworks and Civils

The mining fleet was commissioned and is operational. The raw water pond excavation has been completed and the water pipeline from barrage to site is 95% complete. Good progress has been made on the excavation of the storm water and Pregnant Leach Solution (PLS) ponds and cells 1 to 6 of the heap leach pads.

Within the process plant, foundations are under construction for the soft rock crusher, cement silos, cyanide mixing and agglomeration areas. The power plant is onsite with all generators mounted on plinths and the fuel farm is completed. Assembly of the Adsorption, Desorption and Recovery (ADR) plant has commenced and is rapidly advancing.


Mine Development

Phase I condemnation drilling at the Goulagou II (GGII) waste dump was completed and grade control drilling at GGII is currently underway.


Logistics

Procurement is 99% complete and deliveries to site are 55% complete. The agglomeration drum has been received at site as well as elution column.


Community

The Community Liaison Committee (CLC), the key communication conduit between the Company and the local communities is operating with over 80 representatives from local villages. A tripartite agreement was signed on June 15, 2015 between the Government of Burkina Faso, the Company and community leaders signifying formal support of the Karma mine.


Project Finance - Karma Mine Is Fully Funded:

Karma is forecast to be funded through construction to production. True Gold has $30.5 million in cash, and up to $48.4 million available under our finance facility with approximately $60 million of project cost left to spend, as at July 31, 2015.


Leadership Team

The Company appointed David Laing as Chief Operating Officer ("COO"). Mr. Laing brings a unique combination of a technical background as a mining engineer with strong capital market acumen to help steer True Gold's growth strategy. He has extensive experience in operations and mine building, and specifically with low cost heap leach operations. Mr. Laing joins True Gold from Quintana Resources, a base metals streaming company, where he was COO and lead the origination and execution of stream financing transactions. He was also one of the original executives of Endeavour Mining Corporation as the group grew from one mine in Burkina Faso to a four mine, 500,000 ounce gold producer in West Africa.

Maryse Belanger was appointed to True Gold's Board of Directors. Ms. Belanger brings over 30 years of experience in the mining industry with strengths in operational excellence and efficiency. Currently, she is the Chief Executive Officer and Managing Director of Mirabela Nickel Ltd. (MBN ASX) where she has been responsible for the turnaround of the company and the reestablishment of its mine as one the world's premier nickel copper sulphide open pit operations. From 2012 to 2014, Ms. Belanger was Senior Vice President, Technical Services at Goldcorp. Prior to joining Goldcorp, Ms. Belanger was Director, Technical Services for Kinross Gold Corp. for Brazil and Chile.


Financial Results

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the three and six months ended June 30, 2015 (the "Interim Financial Statements"), as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the Interim Financial Statements and related Management's Discussion and Analysis ("MD&A"). These documents can be found on the Company's website (www.truegold.com) or on SEDAR at www.sedar.com. All amounts are presented in United States dollars unless otherwise stated.

	Three months ended		Six months ended
	June 30, 2015	June 30, 2014	June 30, 2015	June 30, 2014
Net loss for the period	$(4,169,555)	$(6,078,038)	$(11,116,511)	$(9,976,585)
Comprehensive loss for the period	$(4,169,555)	$(3,533,595)	$(16,174,303)	$(8,903,302)
Basic and diluted loss per share	$(0.01)	$(0.02)	$(0.03)	$(0.03)

	As at
	June 30, 2015	December 31, 2014
Cash and short term investments	$23,233,403	$47,529,246
Working capital	$14,242,302	$43,998,612
Total assets	$96,738,768	$110,057,215
Current liabilities	$12,804,059	$5,725,593
Non-current liabilities	$37,421,742	$41,956,675
Shareholders' equity	$46,512,967	$62,374,947

For the three and six month periods ended June 30, 2015, the Company reported a net loss of $4.2 million and $11.1 million respectively, compared to net losses of $6.1 million and $10.0 million for the three and six month periods ended June 30, 2014. The most significant contributor to the loss for the six months ended June 30, 2015 was the impairment recognized on assets damaged during the demonstration at the Karma Mine. The most significant contributor to the comparative three and six month period ended June 30, 2014 losses was exploration and evaluation expenditures predominately related to the Karma Mine.

Total assets as at June 30, 2015 have decreased since December 31, 2014 by $13.4 million to $96.7 million, mainly due to a decrease in total cash and short term investments reflecting cash outflows from operations through the six month period ended June 30, 2015. This was offset by the capitalization of development costs related to the Karma Mine net of the impairment charge related to assets damaged during the demonstration at the Karma Mine.

In the year ending December 31, 2014 the Company entered into a $100-million definitive Agreement with Franco-Nevada and Sandstorm to complete funding for the construction of the Karma Mine. In exchange for $100-million in funding, True Gold is obligated to deliver 100,000 ounces of gold over five years, and thereafter 6.5% of equivalent production at the Karma Mine. In addition, True Gold holds sole option to increase funding by up to $20-million during the first 18 months following the date of the execution of the Agreement. As at June 30, 2015, the Company has drawn down $57.7M under the Agreement. During the six month period ended June 30, 2015 the Company recorded a loss on the change in fair value of the liability of $2.9 million.


About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at www.sedar.com.


ON BEHALF OF THE BOARD

Christian Milau
President & CEO



For further information contact:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes, the Company's ability to efficiently recommence operations at the Karma Project, that the Company will receive additional drawdowns under the financing agreement with Franco-Nevada and Sandstorm and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of True Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, uncertainties related to the Company's relationship with communities that surround its properties in Burkina Faso, risks related to the financing agreement with Franco-Nevada and Sandstorm, including the Company's ability to meet its scheduled delivery obligations, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 27, 2015 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.

Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.



Contact

True Gold Mining Inc.
Investor inquiries
604-801-5020
info@truegoldmining.com
www.truegoldmining.com