Continental Gold Secures Senior Debt Facility for the Buritica Project from RK Mine Finance

TORONTO, ON--(Marketwired - January 10, 2017) - Continental Gold Inc. (TSX: CNL) (OTCQX: CGOOF)

Highlights:

• Definitive Credit Agreement signed with RK Mine Finance for a secured debt facility of US$250 million
• The secured debt facility provides for immediate access to US$100 million to advance the Buriticá project development, subject to satisfying certain customary conditions precedent
• Red Kite to invest up to US$25 million in equity
• No hedging, cash sweeps, cash collateralization or offtake agreement
• Interest and principal payment holiday for 42 months
• Carve out for equipment financing for up to US$30 million

Continental Gold Inc. (TSX: CNL) (OTCQX: CGOOF) ("Continental Gold" or the "Company") is pleased to announce that it has, through its wholly-owned subsidiary Continental Gold Limited, entered into a definitive senior Credit Agreement (the "Agreement") with a special purpose vehicle of RK Mine Finance Master Fund I Limited ("Red Kite") to provide a secured project debt facility for a total of US$250 million. The project debt facility will be used for the development, construction and working capital requirements for the Company's Buriticá project in Antioquia, Colombia. Prior to the execution of the Agreement, Red Kite conducted substantial technical and legal due diligence and, therefore, the Agreement is not subject to further due diligence.

"We are excited to partner with Red Kite to complete the debt financing for the Buriticá project. Throughout the course of 2016, the Company conducted an extensive process of reviewing its debt financing alternatives. The Red Kite senior secured debt facility best met the Company's objectives, providing maximum flexibility and a low cost of capital relative to other private debt deals executed over the past few years, with no hedging, offtake agreements or royalty attached," commented Ari Sussman, CEO of Continental Gold. "With sufficient capital now in place for the bulk of 2017 planned expenditures, the Company will now accelerate detailed engineering and will commence construction and securing the long lead time items in the first half of 2017."