SolGold : Ecuador Further Endorsed by Lundin Gold and Odin Mining

("SolGold" or the "Company")

• Lundin Gold concluded negotiations regarding an Investment Protection Agreement (IPA) for the Fruta del Norte project, Southern Ecuador.
• Odin Mining to acquire Ecuador Gold and Copper Corp. to pursue highly prospective Ecuadorean copper-gold projects
• SolGold Plc recently announced a private placement of up to US$21.5M, subject to the satisfaction of certain conditions, financing to close 24th August 2016.
• Additional drill contract nearing completion, 2 extra available drill rigs planned immediately.
• Full access to Alpala via the new road (Carmen Road) mid-September.
• Additional drill targets prioritised and drill ready at Aguinaga, Moran, Parambas, Trivinio, Alpala South East, Cristal and Carmen.

  The Directors of SolGold (AIM: SOLG) advise of recent corporate and regulatory developments in Ecuador and on Ecuador focused exploration companies. Lundin Gold Inc agreed terms on an Investment Protection Agreement for the Fruta del Norte project with the Ecuadorean Government, and Odin Mining Inc. and Ecuador Gold and Copper Inc announced plans to merge. SolGold Plc recently announced plans to close its US$21.5m financing with Maxit Capital Inc. on August 24, 2016.

  Nick Mather, CEO of SolGold said that the Company was very pleased to see the recent upswing in project, corporate and regulatory activity in Ecuador:

  "These developments are a strong endorsement of Ecuador as an exploration and mining destination by both Government and Industry. Both Lundin and Odin are headed by resource industry executives with strong track records in exploration development and finance. It's pleasing to see" said Mr Mather.

  Lundin Gold has concluded negotiations regarding the Investment Protection Agreement (IPA) for the Fruta Del Norte Project in southern Ecuador just seven months after their Exploitation Agreement completed.

  The IPA provides further tax stability for the company in conjunction with the Exploitation agreement and existing laws in Ecuador. Ron Hochstein (Lundin's Chief Executive) stated that the company continues to enjoy the continued support and cooperation of the Government of Ecuador and the local governments and communities and rated the legal stability and economic certainty contemplated by the IPA with the Government of Ecuador.

  SolGold is encouraged by the IPA as it continues to explore its large and high grade Cascabel Project in northern Ecuador.

  "We look forward to the Lundin IPA providing a benchmark for future dealing with the Government of Ecuador on future projects" said Chief Executive Nick Mather

  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

  A summary of the IPA follows.

  Odin Mining to acquire Ecuador Gold and Copper Corp. Odin Mining [ODN-TSXV] and Ecuador Gold and Copper Corp. [EGX-TSXV] have entered into a definitive arrangement agreement, dated August 2, 2016, whereby Odin will acquire all of the outstanding securities of EGX.

  The deal between Odin and Ecuador Gold and Copper Corp is a further endorsement of the growing mining industry in Ecuador.

  SolGold Plc announces completion of up to US$21.5M financing expected to close 24th August 2016. Maxit Capital (Toronto based Independent Investment and Merchant Bank) has agreed to subscribe for up to 268.8 million ordinary shares at US$0.08 per ordinary share for gross proceeds of up to US$21.5 million ("Placing") plus an option for up to a further US$15 million (Placement Shares). The amount available for subscription under the option may be reduced at SolGold's election. The US$0.08 price represents a 97% premium to the Company's closing midmarket share price prior to the initial announcement of the Maxit private placement and a 28.9% premium to the closing mid-market price on Friday 29 July 2016. Maxit is entitled to include third parties in the placement of shares, subject to the approval of SolGold. The Placing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including regulatory authorities. SolGold's Cascabel Project

  SolGold has discovered the Cascabel project (85% owned) with 25km2 of detailed soil sampling, 50km2 of airborne magnetics, and 25km2 of deep sensing induced polarisation surveys. Fourteen targets with copper-gold porphyry characteristics have been defined. The multiplicity of targets represents a cluster of copper gold targets reminiscent of major Tier 1 resource clusters in Chile, Peru and Panama.

  Only one of the targets, Alpala, has been drilled with 23,700m of core over 18 holes, of which fourteen have hit a deposit some 750m long with a vertical extent of over 1800m from surface and a maximum width exceeding 450m. Alpala remains open in all directions. 3D Leapfrog ™ modelling of drill data and 3D magnetic modelling show close correlation with copper grades providing support for targeting mineralised systems with potential to contain in excess of 10Bt of copper-gold mineralisation.

  The mineralisation outcrops at surface and has been drill tested to a depth of 1800m and is expected to persist deeper, into the heart of the prognosed rich cores of these systems. Bulk underground mining techniques known as "block caving" are amenable to this style of mineralisation at comparable depths in copper porphyry gold systems in Australia, South America, Canada and the USA. Block caving is considered to be a potentially applicable mining technique on the Cascabel deposits and may deliver lower cost operations, lower waste rock volumes and lower social and environmental impacts than those imposed by open pit mining operations. SolGold will continue to investigate alternative development and mining strategies.

  Recent mapping and sampling work on all the targets has enabled prioritisation prior to drill testing in the next campaign. SolGold will prioritise targets exhibiting strong and classic signatures of magnetic anomalism and copper gold molybdenum anomalism with high copper/zinc ratios; in highly fractured and veined surface outcrops of the porphyry copper-gold systems. Accordingly, priority is planned for the Aguinaga, Moran, Parambas, Trivinio, Alpala South East, Cristal and Carmen targets.

  SolGold has access to all target areas in the concession and enjoys strong relationships with Government at all levels, as well as the local communities. SolGold's efforts have been achieved with the expenditure of just US$33 million over three years, the employment of a strong team of Ecuadorian geologists and over 100 members of the local community, supervised by industry recognised porphyry exploration experts and accomplished project management.

  The SolGold program over the next four years is projected to involve over 250,000m of drilling and the engagement up to ten drilling rigs. A new drill contract with a second contractor is nearing finalisation and a new government funded access road will enhance the speed, efficiency and volume of drill sample delivery. (SolGold will have full camp and rig access by mid-September via the new road) Cascabel's ideal location provides logistic advantages in road and port access with water and power availability, which could deliver substantial capital advantages over planned competitor developments.

  SolGold's capital raising of up to US$21.5M at 8 cents per share (approximately 6 pence) due to settle on 24 August 2016, subject to certain conditions, will provide funding for over 12 months of the forward program.

  "Intense interest in the project by major companies provides the SolGold Board and Management with confidence that this project is of global significance" said Mr Mather.

  Summary of the Lundin Gold IPA

  SolGold considers that the Investment Protection Agreement is indicative of a strong commitment by the Government of Ecuador.

  The IPA includes:

• A fixed tax rate at 22%

• Income tax rate fixed at 22%.

• Exemption from the capital outflow tax of 5% on payments of principal and interest to financial institutions outside of Ecuador.

• The ability to obtain benefits granted by the Government of Ecuador through future investment protection agreements with other investors in similar projects in Ecuador.

• No restrictions to transfer or assign all or part of the investment, including the right to assign its rights to any financing parties.

  Other benefits granted to the Company include no restriction to:

• Produce and sell minerals;

• Import and export goods; and

• Establish, maintain, control, or transfer funds abroad, provided statutory remittances and obligations have been met.

Details may be reviewed in Lundin Gold's Announcement from August 5, 2016.

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

NOTES TO EDITORS

SolGold is a Brisbane, Australia based, AIM‐listed (SOLG) copper gold exploration and development company with assets in Ecuador, the Solomon Islands and Australia. The Company's primary objective is to discover and define world‐class copper‐gold deposits. SolGold's Board and Management Team have substantial vested interests in the success of Company, holding approximately 14% of its issued share capital, as well as strong track records in the areas of exploration, mine development, investment, finance and law. SolGold's experience is augmented by state of the art geophysical and modelling techniques and the guidance of Newmont trained porphyry expert Dr Steve Garwin.

Cascabel, the Company's world class flagship copper‐gold porphyry project, is located in North West 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 11% of TSX‐V‐listed Cornerstone Capital Resources, which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession.

To date SolGold has completed geological mapping, 25km2 of soil sampling, 14km2 and an additional 9km2 Induced Polarisation and Magnetotelluric "Orion" surveys over the Alpala cluster and Aguinaga targets respectively. By June 2016, the Company had also completed approximately 23,700m of drilling and expended a total of approximately US$33m on the program, corporate costs and investments into Cornerstone. Intense diamond drilling is planned for the next 12 months with four drilling rigs.

Cascabel is characterised by fourteen (14) identified targets, world class drilling intersections over 1km in length, and high copper and gold grades, 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 only drill tested one of the 14 targets, being Alpala.

SolGold is planning a resource statement at Alpala (the most advanced target at Cascabel) during 2016. This has been delayed by the discovery of high- grade mineralisation in Hole 17 at Alpala, extending the immediate resource potential. Alpala is open at depth in the upper extensions, and to the north, north-east, south-west and south-east. The mineralised zone at Alpala and Moran is closely modelled by magnetic signatures and currently encompasses over 10Bt of magnetic rocks expected to be mineralised with copper and gold.

SolGold will drill test other key targets within the Cascabel concession at Aguinaga, Trivinio, Moran, Alpala Northwest, Hematite Hill, Alpala Southeast, Cristal, Parambas, Carmen Tandayama-America and Chinambicito. The Company is planning further metallurgical testing by the end of 2016, and completion of a conceptual early stage mine and plant design and a scoping study for an economic development at Cascabel. SolGold is investigating both high tonnage

/ low-medium grade open cut and underground block caving operations, and a high grade / low tonnage underground development.

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. Copper equivalent grades are calculated using a gold conversion factor of 0.89, determined using copper price of US$2.20/pound and gold price of US$1350/ounce.

In Queensland, Australia the Company is evaluating the future exploration plans for the Mt Perry, Rannes and Normanby projects. 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, the Solomon Islands in the South West Pacific, where the 100% owned, as yet undrilled, Kuma prospect exhibits surface geological characteristics which are traditionally indicative of a large metal rich copper gold instrusive 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 953,897,601 ordinary shares issued, 820,000 options exercisable at 50p, 5,030,000 options exercisable at 28p and 8,030,000 options exercisable at 14p.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking 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 forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.