Medgold-Centerra Drilling Program at Lagares Project, Portugal Intersects 17.5 m of 4.5 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to provide an update on the on-going diamond drilling program at the Lagares gold project in northern Portugal. To date, a total of 1,192 metres have been drilled in 12 holes of a 3,000 metre program. The Company has granted Centerra Gold Inc. ("Centerra") the option to earn a 51% interest in the project by spending US$3 million over 3 years, and then the right to earn an additional 19% by spending a further US$3 million over 2 years.

Assay results have been received for 5 holes from the initial phase of drilling at Lagares that targeted high-grade gold mineralization identified at the Castromil zone from surface channel-chip sampling, and shallow historical drilling. Highlights of the new assay results include:

• MLG-001: 10.90 m @ 2.32 g/t Au from surface, section 150mS
• MLG-003: 19.95 m @ 3.17 g/t Au from surface, section 450mS *
• MLG-004: 17.49 m @ 4.45 g/t Au from 10.00m, section 400mS

* Includes intervals of 19.1 g/t Au (5.45 to 6.00 m), 31.4 g/t Au (10.40 to 11.00 m), and 38.7 g/t Au (13.04 to 13.25 m)

Gold assay values received to date from the 2015 drilling program range from below detection limit to highs of 38.70 g/t Au (in MLG-003, 13.04-13.25 m), 31.40 g/t Au (in MLG-003, 10.40-11.00 m) and 19.95 g/t Au (in MLG-004, 22.57-23.40 m). A location map, cross-sections and core photographs can be found on Medgold's website, at the following location: http://www.medgoldresources.com/s/lagares.asp, with full details about the recent drilling.

Dan James, President of Medgold, said: "We are delighted with the early success of the drilling at Castromil. All drill holes have cut significant alteration and gold mineralization, and surface rock and soil sampling programs have traced the Lagares mineralized system along strike for 4 kilometres. We've confirmed the existence of high-grade gold mineralization associated with zones of silica and pyrite alteration, and the current drilling is indicating good depth potential, with the highest grade zones apparently extending to the northeast under cover. We're about a third of the way through our proposed 3,000 m program, and will soon start drilling the next prospect - Serra da Quinta - with two rigs. We really like the upside potential of the Lagares project, and the drilling at Serra da Quinta will drill-test high-grade surface mineralization which appears to have very similar characteristics to the mineralization at Castromil."