Caza Gold Announces US$600,000 Secured Loan with Bonus Shares and Shares for Debt

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 8, 2014) - Caza Gold Corp. (the "Company") (TSX VENTURE:CZY) (OTCQX:CZGDF) (FRANKFURT:CZ6) is pleased to announce that it has entered into a loan agreement (the "Loan Agreement") with Polygon Mining Opportunity Master Fund ("Polygon") providing for the terms and conditions pursuant to which Polygon will loan the principal amount of US$600,000 to the Company (the "Loan"), as evidenced by a promissory note. The Loan is for a term of 18 months and is payable on demand after one year. The Loan bears interest at the rate of 12% per annum payable quarterly beginning on September 30, 2014. Polygon will also receive common shares of the Company (the "Bonus Shares") as partial compensation for entering into the Loan Agreement. The number of Bonus Shares will be equal to 18% of the principal amount of the Loan divided by the market price of the common shares on the date of the notice of the Company's next shareholders' meeting, subject to a minimum price of $0.08 per Bonus Share to the extent required by the TSX Venture Exchange, issuable following approval at such shareholders' meeting. As security for the payment of the Company's obligations and for the fulfilment and satisfaction of all covenants and agreements made under the Loan Agreement, the Company has, concurrently with the Loan Agreement, entered into a general security agreement with Polygon pursuant to which the Company granted Polygon a security interest in all personal property of the Company, including the property option agreement dated January 31, 2011 between the Company, Inversiones Ecologicas S.A. ("Inecosa") and the shareholders of Inecosa, under which the Company holds rights to acquire certain mining properties located in Nicaragua, including the Los Andes project.

Polygon is a 'Control Person' and 'related party' of the Company (as defined by securities legislation) and currently owns 21,342,499 common shares of the Company (51.2% of its issued and outstanding share capital). As required by the shareholder rights plan agreement dated June 12, 2012 between the Company and Computershare Investor Services Inc. as rights agent, the Company will seek, at its next Annual General Meeting, or any earlier shareholder meeting, shareholder approval to the issuance of the Bonus Shares to Polygon.