Algold Announces US$9.2M Funding Arrangements

Mauritania-Based Wafa Reaffirms Confidence with Additional US$4.2M Investment in Tijirit Project

All amounts are in US$ unless otherwise indicated.

MONTREAL, July 13, 2018 (GLOBE NEWSWIRE) -- ALGOLD RESOURCES LTD. (TSX-V:ALG) ("Algold" or the "Corporation") announced today that it has entered into low-dilution funding agreements totalling $9.2M (C$12M). Algold and one of its major shareholders, Wafa Mining & Petroleum SA ("Wafa"), a subsidiary of Wafa Holding, have signed a non-binding term sheet for an investment by Wafa, under which Wafa will acquire a 10% interest in the Corporation's Tirex subsidiary, owner of the Tijirit mining permit and gold development project (the "Investment"), as well as a subscription (the "Subscription") by Wafa for 8,837,472 common shares of Algold at a price of C$0.10 per Share, for a total amount of $4.2M in cash.

Separately and concurrently, Algold has entered into a secured credit agreement with a consortium of lenders to establish a short-term loan facility in the aggregate amount of $5M (the "Loan").

"We thank Wafa, a long-standing strategic investor who shares Algold's long-term vision, which is of particular significance given the current headwinds faced by gold development companies. Wafa invested in Algold in two previous rounds of financing and this strategic funding confirms their commitment to help Algold reach the next stage of development," said Algold CEO Benoit La Salle. "We are delighted to have received such a substantial commitment from our lenders as well as from one of our largest shareholders, who understand the full potential of the Tijirit Project."

Wafa CEO Brahim Ghadda also commented, "Wafa envisions tremendous potential in the development of the Tijirit Project. This investment demonstrates our continued commitment to advance Tijirit Project to the next stage of development."

The net proceeds of the Loan, the Investment and the Subscription will be used to fund completion of technical studies, for working capital and for general corporate purposes.

As security for the Loan, Algold has granted the arm's length lenders, including Downtown Special Situations Holdings, LLC, Delaware Street Capital Master Fund, L.P., Saiso Partners LLC, Capital Drilling Ltd. and BPM Capital Limited (the "Lenders") a hypothec on all of its assets, including the equity interests that it holds in its each of its direct subsidiaries. The Loan has a term of one year and bears interest at an annual rate of 15%. In connection with the Loan, Algold has issued to the Lenders a total of 12,756,470 common shares of Algold (the "Bonus Shares"), which are subject to a four-month hold period. The Loan remains subject to the approval of the TSX Venture Exchange (the "TSXV").