Golden Dawn Reports Preliminary Metallurgical Results From May Mac Mine & Receives $1M USD From RIVI Capital LLC

VANCOUVER, BC--(Marketwired - March 15, 2017) - Golden Dawn Minerals Inc., (TSX VENTURE: GOM) (FRANKFURT: 3G8A) (OTC PINK: GDMRF) (the "Company" or "Golden Dawn") announces initial metallurgical results from an on-going laboratory test program relating to its 100% owned May Mac Mine. The Company has received the final tranche of USD $1 million (CDN $1,342,000) from RIVI Capital LLC for the Gold Purchase Agreement previously announced Feb 9, 2017.

A sample suite of mineralized drill core rejects and quartered core samples originating from holes drilled in 2016 and 2017 at the May Mac Mine was composited for metallurgical testing. The total weight of the composite sample was 16 kg. The head assay of the metallurgical composite for the main metals of interest is:

• 1.48 g/t Au, 124 g/t Ag, 0.19% Cu, 1.29% Pb and 1.48% Zn.

Precious metal recovery will be the primary focus of the metallurgical test program. Preliminary findings of initial testing are:

• Gold: Gravity recovered 49% Au, and flotation a further 49% into a bulk sulphide concentrate, resulting in a combined gravity and flotation recovery of 98%.
  
• Silver: Gravity and flotation recovery for silver was 97.7% of which 4.7%, reported to the gravity concentrate.

Overall, the initial results show very good bulk flotation recovery for precious metals following the flowsheet of the existing treatment circuit at the Company's 100% owned Greenwood mill. Flotation cleaning will now be tested in order to make a higher grade concentrate for sale. Optionally, cyanide leaching results after 48 hours retention indicate approximately half the silver was recovered, and with a gold recovery of 90%.

The results indicate that precious metals can be efficiently recovered from the May Mac mineralization using gravity and flotation treatment. The Company's 100% owned Greenwood mill and concentrator, located approximately 15 km east of the mine, is capable of producing such concentrates. This supports the Company's intention to supply mill feed from the May Mac Mine to the Greenwood mill, without having to perform any major modifications to the existing treatment facility.

The Company is continuing its underground diamond drilling program at the May Mac Mine from three drill stations mined last year. Surface drilling will commence on the May Mac Mine in April 2017. The Company is also continuing work on permit applications at the May Mac Mine to extend the #7 Level to do additional diamond drilling, for bulk sampling of up to 10,000 tonnes, and for additional surface drilling.