SolGold : Cascabel Exploration Update - Hole 16 Final Results

("SolGold" or the "Company")

The Board of Directors of SolGold (AIM: SOLG) wish to provide shareholders with the following update from its Cascabel Copper-Gold Porphyry Project in Ecuador.

• Hole 16 final results received, returning another world class intersection from the Alpala deposit of:
  • 1145.6m @ 0.63% Copper and 0.78 g/t Gold from 516m, including 856.0m @ 0.80% Copper and 1.04 g/t Gold from 548m.
• This broad zone of porphyry style copper and gold mineralisation includes two high grade zones:

1. Upper Zone

   152m @ 1.18% Copper and 1.69 g/t Gold from 612m (cut  0.7% Copper) 108m @ 1.46% Copper and 2.19 g/t Gold from 656m (cut  1.0% Copper)

2. Lower Zone

The Cascabel Project is located in Northern Ecuador, within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global resource assets (refer Figure 1 - Location, and Figure 2 - Regional Setting).

The deposit at Alpala continues to grow with each new drill hole, and the Directors of SolGold advise that at 12 noon Central America time on Thursday 28 April 2016, Hole 15R2 (CSD-16- 015R2) was drilling at a depth of 1533m and Hole 17 (CSD-16-017) was drilling at a depth of 643m. Both drill holes continue to intersect significant porphyry style copper-gold mineralisation at the Alpala deposit.

These final assay results from Hole 16 extend the known extent of the Alpala deposit by a further 120m to the southeast, and increases the known strike range of copper and gold mineralisation along the greater Alpala trend, from Hole 13 in the northwest to Hole 16 in the southeast, to some 700m in length (refer Figure 3 - Drill Hole Location Plan).

SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: info@solgold.com.au Website: www.solgold.com.au Street address: Level 27, 111 Eagle St, Brisbane, Australia 4000 Postal address: GPO Box 5261, Brisbane QLD 4000

Registered office: 201 Bishopsgate London EC2M3AB Phone: +44 20 7861 9000

The Alpala Central deposit, which outcrops in Alpala Creek, is open in virtually all directions, and is to date defined at greater than 0.7% copper over a strike length of 625m, a lateral width of 300m, and a vertical extent of 1,800m (refer Figure 4 - Three Dimensional Model).

Photographs showing examples of the intense porphyry style stock work veining and mineralisation encountered in Hole 16 are shown in Figure 5 (refer Figure 5 - Examples of Mineralisation).

The extension of Alpala Central to the south east is accompanied by increased intensity of bornite mineralisation at surface and increasing intensity of veining with depth. Sub-horizontal vein sets and the prevalence of strong magnetite alteration (a magnetically susceptible iron-oxide mineral used as a temperature proxy to high temperature copper mineralisation in porphyry systems) support the veracity of significant mineralisation potential surrounding the Alpala Central system (refer Figure 6 - Three Dimensional Magnetic Model).

By order of the Board Karl Schlobohm Company Secretary

Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 30 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Mather consents to the inclusion of the information in the form and context in which it appears.

SolGold Plc (Executive Director) +61 (0) 417 880 448

nmather@solgold.com.au

SolGold Plc (Company Secretary) kschlobohm@solgold.com.au

SP Angel Corporate Finance LLP (NOMAD and Broker) ewan.leggat@spangel.co.uk

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