Gold Resource Corporation Purchases High Grade Mina Gold Property in Mineral County, Nevada

COLORADO SPRINGS, CO--(Marketwired - Aug 15, 2016) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced the purchase of the Mina Gold property located in Mineral County, Nevada from Nevada Select Royalty Inc. ("Nevada Select"), a wholly-owned subsidiary of Ely Gold and Minerals Inc. (TSX VENTURE: ELY) (OTC PINK: ELYGF). The Mina Gold property contains an historic third party estimate of mineralized material totaling 1,606,000 tonnes grading 1.88 gram per tonne (g/t) gold. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration properties in Nevada, USA. The Company has returned $108 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

Mina Gold acquisition highlights include:

• High-grade gold averaging 1.88 grams per tonne*
• +1.6 million tonnes*
• Open pit heap leach potential
• Metallurgical test work with excellent recoveries
• Potential low start-up project capital expenditure
• Patented claims covering known mineralization
• Mining friendly jurisdiction, Nevada, U.S.A
• 100% acquisition
• No bank or broker transaction fees

(* from historic third-party estimate)

The Company acquired 100% of the Mina Gold property from Nevada Select for US$1,000,000, which included shares of restricted common stock valued at $850,000 and cash of $150,000 representing a one-time advanced royalty payment. Nevada Select retained a net smelter return royalty (NSR) of 3% on the patented claims and 2% NSR on the unpatented claims. The Company has the right to buy down 1 percent of the NSR on the patented claims for US$1,000,000 and 0.5 percent of the NSR on the unpatented claims for US$500,000. 

The Mina Gold property covers an area of approximately 825 acres consisting of 43 unpatented claims and 5 patented claims in central Nevada's Walker Lane Mineral Belt in Mineral County, Nevada. The property is located approximately 7 miles northeast of the Company's Gold Mesa property and will be added to the Company's Nevada Mining Unit. Gold Resource Corporation's Nevada Mining Unit now controls approximately 5,405 acres of exploration lands in south central Nevada's Walker Lane Mineral Belt.