Minera Gold : Operations Upate

Gold and copper producer and developer, Perth-based Minera Gold Limited (ASX Code: MIZ) (Minera Gold or the Company) provides the following operational update and summary of the revised corporate strategy for its flagship mining and exploration assets in Peru, following the appointment of a new management team in country to operate Minera Gold's business.

Summary of the Peruvian Business

The following diagram provides an overview of the Minera gold business and the three revenue streams possible from the Company's 100% owned asset base located in southern Peru.

SAN SANTIAGO PROCESSING PLANT COMPLEX

Gold CIL Circuit

Copper Flotation Circuit

Copper Oxide Vat Leaching Circuit

100TPD

250 TPD

80TPD

Purchase gold ore from third parties Fee for service model to process ore Purchase copper oxide from third parties through existing and new contracts to concentrate for third parties. under new contracts.

All gold is to MIZ's account to be sold Some clients sell concentrate under All copper cement produced is to MIZ's into the open market. their own offtake. account to be sold to traders.

MIZ also markets concentrate.

TORRECILLAS BRASIL & XV MINES

EXPLORATION

Seeking a JV partner to mine and Negoitations ongoing with contract Exploration to focus on identifying and deliver ore to MIZ in exchange for miners for delivery of 40-100 TPD proving up our own sources of

a royalty payment. of ore to San Santiago. oxide material within our properties.

All ore mined will be purchased by Concentrate remains the property

MIZ under the toll treatment fee of MIZ for sale. model.

New Operating Team in Place

As announced to ASX on 29 April 2015, Minera Gold appointed a new in-country management team as part of its strategy to bolster onground manpower resources in Peru, including new individuals with specific experience in toll milling operations. The appointments will also minimise the use of fly-in fly-out management from Australia.

1 Address: 45 Ventnor Avenue, West Perth, WA 6005

Ph: +61 8 9200 1860 - Fax: +61 8 9200 1861

Email:admin@mineragoldlimited.com
The new Peruvian management team comprises:

 Victor Cabez - CFO

 Raul Berninzon - Senior Operations Manager

 Juan Aguilar - Operations Manger - Metallurgy and Mining

 Jamie Tunstall - General Manager

‎

All members of the new operations team have substantial experience in operating small and mid-scale mines and copper and gold processing operations in Peru and add valuable experience to Minera Gold's Peruvian operations.
The Company's new CFO, Mr Victor Cabez, has more than 20 years' experience in both the mining and industrial sectors in Peru and internationally. More recently, he served as the Peruvian CFO for ASX-listed Latin Resources Ltd and possesses a solid understanding of the ASX reporting and listing requirements.

Revised Strategy Being Implemented

The strategy of the Company involves the sourcing and processing of third party ore and also ore sourced from Minera Gold-owned copper and gold operations that will result in the plant operating at its permitted capacity and delivering a solid and reliable cash flow to the Company irrespective of commodity price variations.
The new management team is currently focusing its attention on making sure that the copper flotation circuit is operating at full capacity, initially with third party material. To this extent, the team has been working hard to expand the customer supply base to increase daily delivery of ore to the plant and is also seeking to complete a new contract with a new cornerstone customer to provide a reliable delivery of feed material for this circuit. The negotiations of this contract are continuing and incomplete at this stage.
In relation to the supply of material from Minera Gold-owned projects, further exploration and ongoing technical work in the historical workings at the Brasil high grade copper mine has been completed with results pending for this work. This historical mining operation is the first mine that the Company is seeking to bring back into production through a joint venture with a contractor - a position currently under negotiation. The Company advises that these negotiations are advanced, but incomplete at this stage. It is proposed that the contractor, under the supervision of Minera Gold, will be required to deliver an initial 40 tonnes per day (TPD) of high grade copper sulphide material to the plant with production then increasing to approximately 100TPD during the first six months of the project recommencing. All working capital and equipment is to be provided by the contractor and remuneration will be determined by ore tonnes delivered to the plant and average grade of that material delivered. At all times, the ore and concentrate will remain the property of Minera Gold for eventual sale under offtake arrangement to copper traders.
In parallel, the Company is also working on finalising ore supply agreements for both the gold and copper oxide processing circuits through existing and new supply channels that the management team have access too. These contracts are structured such that the Company acquires ore from third parties and processes the ore for its own account and sale into the market.

Update to Tailings Strategy and Approvals Required

Further to the Company's March 2015 quarterly activities report, the upgrade to the tailings storage facilities at the San Santiago site continues. The management team in conjunction with the Company's consultants, has implemented a revised strategy that is seeking to achieve more than 12 months of additional tailings storage from within our existing facilities, through modification to the dams. This will not only enable the Company to defer the CAPEX spend for the long term tailings strategy but it will also provide time to fully assess other alternatives for tailings storage that the new management team has proposed.
The Company advises that the modification works to the tailings dams that are being completed, are subject to a

site inspection by the relevant authorities this week. The plant has therefore been shut down by management to facilitate this visit and complete planned maintenance work on the flotation circuit. Post the site visit, it is expected that operations at site will recommence.

Update on Financing

The Company advises that it has formally completed the convertible note raising announced on 9 April 2015, raising US$1.05 million in fresh capital for the business.
At this stage, the Company has not however, drawn down the gold purchase facility announced on 9 April 2015 for up to an additional US$1.0 million in funding. The revised gold strategy is being completed by the new management team, including minor changes to the flow sheet in the gold circuit. On completion in the near term, the Company intends to move to draw down of this facility.

In line with previously announced intentions, the finalisation of the new in-country management team, confirmation of additional financing and the revised corporate strategy, had allowed the company to be re- instated to the ASX effective today.
For more information on Minera Gold, please visit our web site at www.mineragoldlimited.com or email us at admin@mineragoldlimited.com.

For and on behalf of the Board,

Investor Relations: Media Enquiries:

+ 1 212 619 6889 +61 (0) 414 822 631
enquire@arrowheadbid.com kevin@fieldpr.com.au

Company Profile: www.abid.co/ASX.MIZ

About Minera Gold Limited

Minera Gold is the owner and operator of a copper and gold business in a well-established mining region of southern Peru. A centralised processing plant with three separate circuits produces very clean copper concentrate and copper cement in addition to loaded carbon from the CIP gold circuit, with feed sourced from third party operators as well as from Minera's 100% owned mines.
The copper assets of Minera are contained within 7,800Ha of under explored concessions that surround the San
Santiago processing plant and are currently being mined for copper, with an attractive gold and silver credit.
Minera's gold assets include its small scale mines at the Torrecillas Project and the exciting exploration target at its Tumi Project. At Torrecillas, a number of high-grade narrow gold veins have been developed and mined by Minera Gold up until late 2014. These two gold projects, located just 180kms from the processing plant, are part of 16,000Ha concession package that also contain two large tonnage, low-grade disseminated targets containing known gold and copper with silver and molybdenum mineralization.

Forward Looking Statements

The document (Document) is provided on the basis that none of Minera Gold Limited ACN 117 790 897 (MIZ) nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliability, relevance, currency or completeness of the material contained in the Document and no responsibility is taken for any errors or omissions. Nothing contained in the Document is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. MIZ excludes all warranties (including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature arising out of that Document (or any accompanying or other information) whatsoever, nor by reason of any reliance upon it. MIZ accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this Document or any other information made available to a person nor any obligation to furnish the person with any further information.

The Document may contain prospective financial material which is predictive in nature and based on certain assumptions. Accordingly, actual financial results may be affected by assumptions which prove to be inaccurate or by known or unknown risks and uncertainties, and are likely to differ, possibly materially, from results ultimately achieved. The Document may contain "forward-looking statements". All statements other than those of historical facts included in the Document are forward-looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales; (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; (v) estimates of future capital expenditures; and (vi) estimates of reserves, and statements regarding future exploration results and the replacement of reserves. Where MIZ expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade, recovery rates or other matters from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. MIZ does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of the Document, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

distributed by