SolGold : Comment on Market Speculation

6 July 2017

SolGold plc

('SolGold' or the 'Company')

Comment on Market Speculation

Targeting Intersections

As a result of certain market commentary, the Board of Directors of SolGold (the 'Board') wishes to clarify circumstances surrounding transactions involving:

i) the raising of USD $41.2m at 41p (the 'raising' or the 'placement') representing a premium of 6p or 15% over market at the time; and

ii) the swap of existing SolGold shares amounting to approximately 11.25% of SolGold by SolGold shareholders with Cornerstone Capital Corporation (TSX-V: CGP) ('Cornerstone') in exchange for the issue of new Cornerstone shares.

On 14 June 2017, the Board of SolGold (with Newcrest nominee Craig Jones absenting himself from the discussion and vote) resolved to place a further 4.54% interest in SolGold to Newcrest International, a subsidiary of Newcrest Mining Limited, Australia's largest gold miner ('Newcrest') and, in the opinion of the SolGold Board, one of the world's top two block cave miners. Block cave mining is a technique believed by SolGold to be particularly suitable to the Alpala deposit at Cascabel in northern Ecuador. The Newcrest-led placement of new shares in SolGold raised USD $41.2m at a price of 41p per share, a premium of 6p and some 15% above the prevailing market price of the Company's shares.

Rationale for the placement:

i) the raising gives SolGold a runway of more than 12 months on its expenditure programs in Ecuador, with a focus on its aggressive drill program at Cascabel;

ii) the raising was at a significant premium to the prevailing market of approximately 6p per share or 15%;

iii) the timing, size and premium were appropriate; and

iv) the placement to Newcrest involved an anti-dilution right to maintain a 14.54% interest in SolGold fora period of 12 months from the placement, following which the anti-dilution right would decline to 10%. Newcrest continues to be bound until 30 August 2019 by an obligation to support certain transactions including change of control transactions in SolGold which are recommended by the Board, supported by an independent evaluation, and supported by not less than 60% of the Company's shareholders in acceptances or at a General Meeting of shareholders.

Notwithstanding the benefits conferred on SolGold as a result of the equity raising with Newcrest and the demonstrated exploration skills and commitment of the management team, several shareholders have recently agreed to sell their shares in SolGold to Cornerstone.

In two transactions announced by Cornerstone on 19 June 2017 and 4 July 2017, various shareholders in SolGold holding a total of 11.25% of the issued share capital of SolGold entered various conditional agreements to transfer their existing shares in SolGold to Cornerstone in exchange for new shares in Cornerstone, representing circa 46% of the share capital of Cornerstone.

These agreements and share issues in Cornerstone do not affect the underlying ownership of Cascabel, or SolGold's issued share capital. Nor do these arrangements, in the view of the SolGold Board, affect the likelihood or otherwise of any future change in control transaction in either SolGold or Cornerstone.. SolGold continues to own an 85% interest in Explorationes Novomining S.A ('ENSA') which owns the Cascabel licence. SolGold has an obligation, subject to the provisions of Term Sheets executed between SolGold and Cornerstone dated 18 February 2013 and 24 February 2014, to debt fund Cornerstone's 15% share of the programs at Cascabel through to completion of a feasibility study. Cornerstone can ultimately repay its share of those costs and fund its share of development, or dilute to a royalty interest.

SolGold maintains that it represents a highly effective entry into Cascabel, and Alpala and continues to possess the same strong technical and management team that have been moving the project forward for the past 18 months, a period during which all holders of SolGold shares enjoyed a rapid share price appreciation. The endorsement by Newcrest is a testament to the strength of that team.

SolGold is continuing to advance the Cascabel project and Alpala deposit towards the maiden resource statement by the end of 2017. The arrival of three new drilling rigs and the application of deviated drilling techniques and expedited assay processes should mean that approximately 5000 metres of new drilling per month will deliver intersections predominantly in highly mineralized porphyry at Alpala.

The blueprint for discovery of Alpala is being replicated on 22 other porphyry centres throughout Ecuador and the Board is confident that further 100% owned discoveries will result, to augment the exciting world class Alpala discovery at Cascabel.

By order of the Board

Karl Schlobohm

Company Secretary

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

CONTACTS

Mr Nicholas MatherTel: +61 (0) 7 3303 0665

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

nmather@SolGold.com.au

Mr Karl SchlobohmTel: +61 (0) 7 3303 0661

SolGold Plc (Company Secretary)

kschlobohm@SolGold.com.au

Mr Ewan Leggat / Mr Richard Morrison 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

NOTES TO EDITORS

SolGold is a Brisbane, Australia based, AIM‐listed (SOLG) copper gold exploration and future development company with assets in Ecuador, Solomon Islands and Australia. SolGold's primary objective is to discover and define world‐class copper‐gold deposits. The Board and Management Team have substantial vested interests in the success of the Company as shareholders as well as strong track records in the areas of exploration, mine appraisal and development, investment, finance and law. SolGold's experience is augmented by state of the art geophysical and modelling techniques and the guidance of porphyry copper and gold expert Dr Steve Garwin.

SolGold was shortlisted as a nominee for the Mining Journal Explorer Achievement Award for 2016. The Company announced USD54m in capital raisings in September 2016 involving Maxit Capital LP, Newcrest International Ltd and DGR Global Ltd, and a USD41.2m raising in June of 2017 largely from Newcrest International with USD1.2m raised from Ecuadorean investors. All of these raisings were undertaken at substantial premiums to previous raisings, and SolGold has circa USD70 million in available cash to continue the exploration and development of its flagship Cascabel Project.

Mr Craig Jones joined the SolGold Board on 3 March 2017, nominated to the Board of SolGold by Newcrest Mining, now a 14.54% shareholder in SolGold. Mr Jones is a Mechanical Engineer and is currently the Executive General Manager Wafi-Golpu (Newcrest-Harmony MMJV). He has held various senior management and executive roles within the Newcrest Group, including General Manager Projects, General Manager Cadia Valley Operations, Executive General Manager Projects and Asset Management, Executive General Manager Australian and Indonesian Operations, Executive General Manager Australian Operations and Projects, and Executive General Manager Cadia and Morobe Mining Joint Venture. Prior to joining Newcrest, Mr Jones worked for Rio Tinto.

Cascabel, SolGold's 85% owned 'World Class' (Ref: Cautionary Notice) flagship copper‐gold porphyry project, is located in northern Ecuador on the under‐explored northern section of the richly endowed Andean Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A. ('ENSA') and approximately 8% of TSX‐V‐listed Cornerstone Capital Resources ('Cornerstone'), which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession. Subject to the terms of existing agreements, Cornerstone is debt financed by SolGold for its share of costs to completion of a Feasibility Study.

The investments by Newcrest for 14.54% of SolGold, and the investments into SolGold by Guyana Goldfields, Maxit Capital and its clients, endorses Ecuador as an exploration and mining destination, the management team at SolGold, the dimension, size and scale of the growing Alpala, and the prospectivity of Cascabel and its multiple targets. The gold endowment, location, infrastructure, logistics are important competitive advantages offered by the project.

To date SolGold has completed geological mapping, soil sampling, rock saw channel sampling, geochemical and spectral alteration mapping over 25km, along with an additional 9km of Induced Polarisation and 14km Magnetotelluric 'Orion' surveys over the Alpala cluster and Aguinaga targets.

SolGold has completed over 40,000m of drilling and expended over USD47M on the program, which includes corporate costs and investments into Cornerstone. This has been accomplished with a workforce of up to 176 Ecuadorean workers and geoscientists, and 6 expatriate Australian geoscientists. The results of 26 holes drilled (including re-drilled holes) and assayed to date have produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history, as indicated by Hole 12 (CSD-16-012) returning 1560m grading 0.59% copper and 0.54 g/t gold including, 1044m grading 0.74% copper and 0.54 g/t gold. The average grade of all metres drilled to date on the project currently stands at 0.32% copper and 0.27 g/t gold. Intensive diamond drilling is planned for the next 12 months with 10 drill rigs expected to be operational by early 2018, targeting over 90,000m of drilling per annum.

Cascabel is characterised by fifteen (15) identified targets, 'World Class' drilling intersections over 1km in length at potentially economic grades, and high copper and gold grades in richer sections, as well as logistic advantages in location, elevation, water supply, proximity to roads, port and power services; and a progressive legislative approach to resource development in Ecuador.

To date, SolGold has drill tested 4 of the 15 targets, being Alpala Northwest, Alpala Central, Hematite Hill, and Alpala Southeast. Currently drill testing of Alpala Northwest, Alpala Central and Alpala Southeast targets is underway, with drill testing of the Aguinaga target to commence in August 2017.

The Alpala deposit is open in multiple directions and the mineralised corridor marked for drill testing of the greater Alpala cluster occurs over a 2.2km strike length from Trivinio in the northwest to Cristal in the southeast. The mineralised corridor is known to be prospective over approximately 700m width.

High priority targets within the Alpala cluster, at Moran approximately 700m to the north, and at Aguinaga approximately 2.3km north east, are closely modelled by 3D MVI magnetic signatures that currently encompass over 15Bt of magnetic rock. Based on a strong spatial and genetic relationship between copper sulphides and magnetite, this body of magnetic rock is considered to be highly prospective for significant copper and gold mineralisation, and requires drill testing.

SolGold is focussing on extending the dimensions of the Alpala deposit including Hematite Hill, Alpala South East, Cristal, Alpala Northwest and Trivinio before completing a resource statement and drill testing of the other key targets within the Cascabel concession at Aguinaga, Tandayama-America, Alpala West, Carmen, Alpala East, Moran, Parambas, and Chinambicito.

The Company is currently planning further metallurgical testing and completion of an independent Pre-Feasibility Study at Cascabel. SolGold is investigating both high tonnage open cut and underground block caving operations, as well as a high grade / low tonnage initial underground development towards the economic development of the copper gold deposit/s at Cascabel.

Drill hole intercepts have been updated to reflect current commodity prices, using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.63, determined using an updated copper price of USD3.00/pound and an updated gold price of USD1300/ounce. True widths of down hole intersections are estimated to be approximately 25-50%.

Following a comprehensive review of the geology and prospectivity of Ecuador, SolGold and its subsidiaries have also applied for additional exploration licences in Ecuador over a number of promising porphyry copper gold targets throughout the Country. SolGold is negotiating external funding options which will provide the Company with the ability to have some of these projects fully funded by a third party while focussing on Cascabel.

In Queensland, Australia the Company is evaluating the future exploration plans for the Mt Perry, Rannes and Normanby projects, with drill testing of the Normanby project planned for the coming quarter. Joint venture agreements are being investigated for a joint venture partner to commit funds and carry out exploration to earn an interest in the tenements.

SolGold retains interests in its original theatre of operations, Solomon Islands in the South West Pacific, where the 100% owned, but as yet undrilled, Kuma prospect on the island of Guadalcanal exhibits surface lithocap characteristics which are traditionally indicative of a large metal rich copper gold intrusive porphyry system. SolGold intends in the future to apply intellectual property and experience developed in Ecuador to target additional 'World Class' copper gold porphyries at Kuma and other targets in Ecuador and Argentina.

SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and currently has a total of 1,512,955,685 ordinary shares issued, together with 33,095,884 options exercisable at 28p and 11,095,884 options exercisable at 14p.

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the 'Company') and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors. Such forward-looking and interpretative statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such interpretations and forward-looking statements. Accordingly, the reader should not rely on any interpretations or forward-looking statements; and save as required by the exchange rules of TSX and LSE-AIM and LSE for companies or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time expenditure, metals prices and other affecting circumstances.

The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis, and where possible aims to circulate all available material on its website.

The Company recognises that the term 'World Class' is subjective and for the purpose of the Company's projects the Company considers the drilling results at the growing Alpala Porphyry Copper Gold Deposit at its Cascabel Project to represent intersections of a 'World Class' deposit on the basis of comparisons with other drilling intersections from 'World Class' deposits tabulated in Table 1, some of which have become, or are becoming, producing mines and on the basis of available independent opinions which may be referenced to define the term 'World Class' (or 'Tier 1').

The Company considers that 'World Class' deposits are rare, very large, long life, low cost, and are responsible for approximately half of total global metals production. 'World Class' deposits are generally accepted as deposits of a size and quality that create multiple expansion opportunities, and have or are likely to demonstrate robust economics that ensure development irrespective of position within the global commodity cycles, or whether or not the deposit has been fully drilled out, or a feasibility study completed.

Standards drawn from industry experts (1Singer and Menzie, 2010; 2Schodde, 2006; 3Schodde and Hronsky, 2006; 4Singer, 1995; 5Laznicka, 2010) have characterised 'World Class' deposits at prevailing commodity prices. The relevant criteria for 'World Class' deposits, adjusted to current long run commodity prices, are considered to be those holding or likely to hold more than 5 million tonnes of copper and/or more than 6 million ounces of gold with a modelled net present value of greater than USD 1 Billion.

The Company cautions that the Cascabel Project remains an early exploration stage project at this time. Despite the relatively high copper and gold grades over long intersections and broad areas, and widespread surface mineralization discovered at the Cascabel Project to date, much of which has still not yet been drill tested, the Company has yet to prepare an initial mineral resource estimate at the Cascabel Project and any development or mining potential for the project remains speculative. There is inherent uncertainty relating to any project at an exploration stage, prior to the determination of a mineral resource estimate, preliminary economic assessment, pre-feasibility study and/or feasibility study. There is no certainty that future results will yield the results seen to date or that the project will continue to be considered to contain a 'World Class' deposit. Accordingly, past exploration results may not be predictive of future exploration results.

From the drilling results at the growing Alpala Porphyry Copper Gold Deposit (only) within the Cascabel Project, the Company considers the deposit to have significant resource potential and the data gathered has provided the basis for the estimation of an exploration target over the area drilled to date. Initial 3D modelling and grade shell interpolants have outlined an approximate exploration target at Alpala that ranges from 621Mt at 1.09% copper equivalent using a cut-off grade of 0.4% copper equivalent, to 843Mt at 0.94% copper equivalent, using a cut-off of 0.3% copper equivalent. These estimates equate to an endowment of between 6.8-7.9Mt of contained copper equivalent (Figure A).

Copper equivalent grades used are calculated using a gold conversion factor of 0.63, determined using a copper price of USD 3.00/pound and a gold price of USD 1300/ounce. Drill hole intercepts are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. True widths of down hole intersections are estimated to be approximately 25-50%.

The Company cautions that the potential quantity and grade ranges (exploration target) disclosed above for the Alpala Porphyry Copper Gold Deposit within the Cascabel Project is conceptual in nature, and there has been insufficient exploration to define a mineral resource, and the Company is uncertain if further exploration will result in the exploration target being delineated within a mineral resource estimate.

On this basis, the reference to the Cascabel Project as 'World Class' (or 'Tier 1') is considered to be appropriate. Examples of global copper and gold discoveries since 2006 that are generally considered to be 'World Class' are summarised in Table 2.

References cited in the text:

1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral Resource Assessments: An Integrated Approach. Oxford University Press Inc.

2. Schodde, R., 2006. What do we mean by a world class deposit? And why are they special. Presentation. AMEC Conference, Perth.

3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class Mines in Wealth Creation. Special Publications of the Society of Economic Geologists Volume 12.

4. Singer, D.A., 1995, World-class base and precious metal deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p. 88-104.

5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources of Industrial Metal, Second Edition. Springer-Verlag Heidelberg.