SolGold : Cascabel Exploration Update - Hole 17 at Alpala Intersecting Very Strong Visible Copper Mineralisation

2f150383-ac6d-42a3-b5e9-9d68cfaf6e3f.pdf SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update 16 May 2016 Hole 17 at Alpala Intersecting Very Strong Visible Copper Mineralisation

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

HIGHLIGHTS:

• Hole 17 intersects strong visible mineralisation from 641.3 metres to current hole depth at 999.2 metres.
• Very intense visible bornite and chalcopyrite copper sulphide mineralisation at Alpala, the principle target at Cascabel from 816.2 m to 999.2 metres depth.
• Drill Hole 17 is extending the surface footprint of high grade mineralisation approximately 100 metres south west and approximately 300 metres higher at this position.
• Drilling and strong mineralisation continues. FURTHER INFORMATION:

  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 Friday 13 May 2016, Hole 17 (CSD-16-017) was drilling at a depth of 999.2m. Rig 1 is drilling Hole 17 to the southwest at a declination of -74 degrees, from the same drill site as Hole 16, towards a planned depth of 1400m (refer Figure 3, Drill Hole Location Plan).

  Hole 17 is targeting shallow extensions of the Alpala deposit to the west, along the interpreted continuation of strong copper and gold mineralisation intersected in Holes 1, 5 and 12, which returned intersections including:

  • Hole 1: 318m @ 0.39 % Cu and 0.48 g/t Au from 16m, including 100m @ 0.65 % Cu and 1.00 g/t Au from 222m.

  • Hole 5: 1306m @ 0.62 % Cu and 0.54 g/t Au from 24m, including 552m @ 1.03m % Cu and 1.05 g/t Au from 778m.

  • Hole 12: 1312m @ 0.67 % Cu and 0.63 g/t Au from 128m, including 576m @ 1.03m % Cu and 1.19 g/t Au from 844m.

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

Hole 17 passed into significant, intrusion hosted, visible porphyry style copper sulphide

mineralisation from 641.3m depth, and has intersected over 350m of significant mineralisation to date.

The intersection so far in Hole 17 has the effect of extending high grade envelopes in the company's 3D models to the south west by 100 metres and upwards (shallower) by some 300 metres. This is expected to significantly enhance the interpreted copper cutoff tonnages in the vicinity of Hole 17.

Hole 17 passed into very intense visible bornite-chalcopyrite copper sulphide mineralisation from 816.2m. Bornite and chalcopyrite are important copper ore minerals containing around 63% and 35% copper, respectively.

Hole 17 continues to intersect intense visible mineralization to the current depth of 999.2m, and examples of mineralisation encountered to date are shown in Figures 4 and 5 (refer Figures 4 and 5, Core Photos).

Rig 2 continues drilling Hole 15R2 towards a revised planned depth of 2000m, having intersected over 950m of significant intrusion hosted, porphyry style copper sulphide mineralisation from 803.2m to the current depth of 1749.4m.

Hole 15R2 is targeting extensions of the Alpala deposit to the north, and at depth, some 100m north of the deeper high-grade zone intersected in Hole 9, which returned 1050.8m @ 0.68% Cu and 0.92 g/t Au, including 420m @ 1.00 % copper and 1.34 g/t gold.

Assay results and a detailed review on Hole 15R2 will be forthcoming when assay results are released later in the month of May.

By order of the Board Karl Schlobohm Company Secretary

Qualified Person:

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.

CONTACTS Mr Nicholas Mather Tel: +61 (0) 7 3303 0665

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

nmather@solgold.com.au

Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661

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

Mr Ewan Leggat Tel: +44 (0) 20 3470 0470

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

Follow us on twitter @SolGold_plc

Figure 1: Location of Cascabel project in northern Ecuador, Figure 2: Regional Setting of the Cascabel Project, in the northern Andean Copper Belt