SolGold : Maxit Capital Second Tranche Raising

Further to its previous market release of 26 September 2016, and following the approvals obtained at the Company's General Meeting of Shareholders, the Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company is today issuing a total of 63,353,339 new ordinary shares of 1p each ("Ordinary Shares") under a series of agreements for a total consideration of USD10,136,534 to Maxit Capital LP (Maxit) and clients of Maxit.

The agreements to issue new Ordinary Shares cover:

1. the raising of USD8,883,137 in cash proceeds for the allotment of new Ordinary Shares to Maxit and Maxit clients;

2. the conversion by Maxit to equity of the Company, at Maxit's election, of USD1,253,397 which is part of the fee due to Maxit under the raising arrangements as previously advised.

All new Ordinary Shares will be issued at a price of US16 cents per share, as previously announced.

The Company will now work towards settlement of the placement to Newcrest as approved by shareholders at SolGold's General Meeting yesterday.

The proceeds from the capital raising will be used to continue to fund the Company's exploration of its flagship Cascabel Copper Gold Porphyry Project, for general working capital purposes and ongoing corporate costs. As previously announced, SolGold intends to contract additional drill rigs to expand exploration on the overall Cascabel concession, and will update the market shortly with respect to the forecast work program.

Application will be made for the admission of 63,353,339 new Ordinary Shares to trading on AIM ("Admission"). Admission is expected to occur on or around Thursday 20 October 2016.

The 63,353,339 new Ordinary Shares to be issued will rank pari passu with the existing Ordinary Shares. The rights attaching to the new Ordinary Shares, including as to voting, are the same as those of the existing Ordinary Shares. Following the issue of new Ordinary Shares, the total issued ordinary share capital of the Company consists of 1,286,069,944 Ordinary Shares each with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company following Admission of the new Ordinary Shares will be 1,286,069,944 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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 Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001

As a result of the issue and allotment of the shares as outlined above, the Company is aware of the following updated holdings:

* Includes direct and indirect holdings

Following the issue and allotment of the shares as outlined above, the Directors of SolGold hold the following shares:

By order of the Board Karl Schlobohm Company Secretary

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

SP Angel Corporate Finance LLP (NOMAD and Broker) Ewan.leggat@spangel.co.uk / richard.morrison@spangel.co.uk

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, 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.

From a corporate perspective, SolGold has recently announced capital raisings involving Maxit Capital LP and Newcrest International Ltd, both undertaken at substantial premiums to previous raisings. Once completed, SolGold will have raised USD48 million in funding to continue the exploration and development of its flagship Cascabel Project. Also as a result of these raisings, Mr Scott Caldwell (CEO of TSX‐listed Guyana Goldfields Inc) joined the SolGold Board on 9 September 2016. Mr Caldwell is a mining engineer with over 30 years of experience building and operating gold and base metal mines worldwide, including USA, Canada, Russia, Zimbabwe, Chile and Indonesia.

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 USD33m on the program, corporate costs and investments into Cornerstone. Intense diamond drilling is planned for the next 12 months with multiple drill rigs.

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   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 Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001

   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 drill tested only 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, Trivino, 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 USD2.20/pound and gold price of USD1350/ounce.

   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 additional promising porphyry copper gold targets elsewhere in the Country.

   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 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 1,286,069,944 ordinary shares issued, together with 2,180,000 options exercisable at 28p and 5,180,000 options exercisable at 14p.

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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 Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001