SolGold : Regional Exploration Update

18 July 2018

SolGold plc

('SolGold' or the 'Company')

Regional Exploration Update

10 Priority Projects Identified Across Ecuador

Significant Copper and Gold Results Continue to be Returned From Blanca Nieves, La Hueca and Porvenir

The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company's regional exploration activities, particularly results from its 100% owned La Hueca, Porvenir and Blanca Nieves projects

SolGold's strategy to become a tier 1 copper and gold producingcompany through aggressive exploration is continuing to yield exciting results. Initial exploration of SolGold's 72- regional concessions, across Ecuador, is nearing completion. Based on the results of this initial exploration, a list of 10 priority targets have been identified for second phase exploration.

Ecuador is located on the gold rich section of the northern Andean Copper Belt and is renowned as the production base for nearly half of the world's copper (Figure 1). Large copper gold deposits of similar age elsewhere in the Andes include Escondida, El Salvador, Collahuasi, Chuquicamata and Alpala - Solgold's 85% owned Cascabel project.

Ongoing exploration will focus on advancing these priority projects, through geophysical surveys and detailed soil geochemistry, with a view to progress to drill testing as soon as permissions are in place. All of the 10 projects are held within the Company's 100% owned subsidiaries: Carnegie Ridge Resources, Green Rock Resources, Cruz Del Sol S.A. and Valle Rico Resources.

The 10 priority projects are:

The Company has already announced exciting initial results from the Blanca Nieves, La Hueca and Porvenir projects and positive results continue to be returned.

References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/9963U_1-2018-7-18.pdf

HIGHLIGHTS:

Commenting on today's regional update, SolGold's CEO, Nick Mather said, 'SolGold has been convinced of Ecuador's prospectivity since the Company commenced operations in 2012, and started seeing outstanding results from the Cascabel project. Utilising its first mover advantage and the Cascabel exploration blueprint, SolGold has been aggressively scouring the country for more world class projects. Management is very excited to have been able to identify 10 priority, 100% owned projects, so far, that will progress to the next phase of exploration. Our high success rate has been achieved by operating multiple field teams utilising a specialised method of rapid prospect recognition in each of our four, 100% owned regional subsidiary companies. SolGold employs 42 experienced Ecuadorean geologists within these subsidiaries. Environmental and social teams work alongside the technical teams to ensure SolGold and its subsidiaries maintain a social licence to operate in order to rapidly progress these projects'.

EXPLORATION ACTIVITIES & RESULTS

Blanca Nieves

The Blanca Nieves Project is located in northern Ecuador on the northern Eocene belt of the prolific Andean Copper Belt, immediately north of the Cascabel concession that hosts SolGold's flagship Cascabel copper-gold deposit. The Projects comprises two concessions (Blanca and Nieves) over 97km². SolGold holds a 100% interest in these two concessions through its Ecuadorean subsidiary company, Carnegie Ridge Resources S.A.

High grade epithermal style gold mineralisation has been identified over an interpreted 10km long NW trending structural corridor linking both the Nieves and Blanca concessions. The Blanca Nieves epithermal gold veins are situated in a previously unrecognised corridor of gold mineralisation highlighting once again the under explored potential of the Ecuadorean section of the Andean copper-gold belt.

The rich epithermal gold mineralisation is thought to be associated with large copper gold porphyry systems in the area including the Alpala deposit.

Cielito vein prospect

Hosted in volcanics and volcanic breccias showing weak quartz-pyrite-illite and chlorite-sericite alteration (Photo 1 & 2). Sampling of the intermediate sulphidation Cielito vein returned very high grade gold mineralisation (Table 1);

A ridge and spur auger soil program is underway traversing the projected trend of the epithermal structural corridor. Following the results of the geochemical sampling program, a targeted geophysical survey will be planned, and drill testing.

La Hueca

The La Hueca Project is located in Southern Ecuador and lies on the southern part of Ecuador's eastern Jurassic Belt (Figure 4), which contains the Fruta del Norte epithermal gold deposit currently being developed by Lundin Gold, the Mirador porphyry copper deposit and the Santa Barbara porphyry gold-copper deposit. The Hueca Project comprises three concessions over 160km2 and 100% owned by SolGold's subsidiary, Cruz del Sol S.A.

As previously announced, SolGold's technical team have discovered an extensive new corridor of porphyry copper and gold mineralisation at La Hueca Project that also trends through the Company's Porvenir and Timbara Projects.

Target 6

Target 6 has returned strong copper, gold and molybdenum anomalism over a large area 1.25km by 1.0 km (Figure 5 & 6). This new discovery by the Cruz del Sol team is significant due to k-feldspar, secondary biotite, and chlorite-sericite hydrothermal alteration intensity, and the presence of chalcopyrite, molybdenite and bornite. A- and B-type quartz veins are also present at variable density. Geochemical high Cu-Mo results are significant (Table 2),and they are dispersed over an extensive area.

Best rock chip results from Target 6 include;

A program of gridded auger soil sampling is underway at Target 6 to further delineate drilling targets. Geophysical surveys are also planned over the La Hueca project.

Porvenir

The Porvenir Project is also located in Southern Ecuador and lies on the southern part of Ecuador's eastern Jurassic Belt. The concession covers 244km2 and is owned by the Company's 100% owned subsidiary, Green Rock Resources S.A (Figure 4).

A stream sediment, mapping and rock chip sampling programs at the Porvenir Project delineated two porphyry copper prospect areas within the larger 6km x 5.5km stream anomaly, the Derrumbo and Bartolo prospects (Figure 7).

A program of ridge and spur auger soil sampling is currently underway with initial auger soil results having identified a 2.5km by 2km zone of strong copper anomalism. Initial multi element soil geochemistry is delineating a strongly zoned porphyry copper target with copper in soil values of up to 0.42% Cu. Follow up mapping has confirmed mineralisation in outcrop, with best rock chip results including;

Auger soil programs are continuing and infill programs are planned to delineate drill targets. Geopysical surveys are also planned over the Bartolo and Derrumbo prospects.

Cisne Loja

The Cisne Loja Project is located in the southern central region of Ecuador. Cisne Loja covers 147km² and is owned by the Company's 100% owned subsidiary, Green Rock Resources S.A.

First pass stream sediment surveys have identified several large areas of strong gold mineralisation across the tenement. Recent follow up of gold anomalies has led to the discovery of outcropping epithermal style alteration and mineralisation over an area of 2.5km by 1.5km with several episodes of quartz veining, which shows similarities to the epithermal gold system at Fruta del Norte in Southern Ecuador.

Numerous areas of epithermal quartz veins with alteration exhibiting silica-kaolinite-quartz clay assemblages together with vuggy quartz, indicate an intermediate to low sulphidation epithermal environment.

Numerous rock chip samples have returned gold and silver results greater than 1 g/t Au with a best rock chip sample of:

Further detailed mapping, sampling and trenching is planned along with a geophysical survey, prior to drill testing.

Timbara

The Timbara Project is located in Ecuador's eastern Jurassic Belt which hosts the Fruta del Norte epithermal gold deposit (14 million ounces Au), the Mirador copper porphyry deposit (3 million tonnes Cu) and the Santa Barbara copper-gold porphyry deposit (8 million ounces Au). The concessions covers 151km² and is owned by the Company's 100% owned subsidiary, Green Rock Resources.

Results from rock chip samples collected during stream reconnaissance programs at Timbara include:

The location and orientation of mineralised veins may represent a continuation of the highly prospective porphyry corridor identified at SolGold's La Hueca Project.

Initial exploration programs are continuing.

Rio Amarillo

Located in northern Ecuador on the prolific Andean Copper Belt near SolGold's world class Cascabel Project, the three Rio Armarillo concessions cover an area of 123 km².

Two main prospects have been identified in both Rio Armarillo 1 & 2; Chilanes and the Pugaran Prospects.

Chilanes consists of an extensive lithocap with surrounding strong stream sediment anomalies. The lithocap measures approximately 2.4km by 2.4km. It consists of crackle and hydrothermal breccias, with silca-clay and advanced argillic alteration, typical of the upper levels of a porphyry system.

Pugaran hosts abundant B-type veins and zones of strong copper mineralisation. It represents a 250m long outcrop of copper mineralisation consisting of B type veins with pyrite, chalcopyrite, chalcocite and bornite. K-alteration overprinted by phyllic alteration.

The next stage of exploration at Rio Armarillo project will start with detailed auger soil program over the Chilanes lithocap in Rio Armarillo 2 concession and geophysical surveys covering the entire project, to enable drill target selection.

Chillanes

The Chillanes project is located in the Miocene Belt in central Ecuador. The concession covers 48km² and is owned by the Company's 100% owned subsidiary, Green Rock Resources S.A.

Whilst initial exploration is yet to be completed over the entire concession, early results are very encouraging. Stream sediment geochemical sampling has return the highest copper results from any SolGold project in Ecuador with best results including 1140ppm Cu and 1110ppm Cu. Detailed follow up mapping and rock chip sampling is continuing with the best rock chip assay returned to date of 1.42% Cu.

Hydrothermal alteration consists of phyllic alteration with abundant chalcopyrite and pyrite with lesser chalcocite and bornite mapped in outcrop.

Following the completion of initial anaconda mapping, a program of auger soil geochemistry will be carried out to delineate priority drill targets.

Cisne Victoria

The Cisne Victoria Project is located in southeastern Ecuador. The concession covers 170km² and is owned by the Company's 100% owned subsidiary, Cruz del Sol S.A.

Numerous prospects have been discovered during SolGold's initial geochemical stream sampling. Significant alteration and mineralisation has been identified that is indicative of a large porphyry system.

Best result include a 7m continuous channel chip sample that returned:

Initial first pass exploration is continuing to define the extent of the copper mineralisation and locate new prospects.

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.

By order of the Board

Karl Schlobohm

Company Secretary

ABOUT SOLGOLD

SolGold is a leading exploration company focussed on the discovery and definition of world-class copper and gold deposits. In 2017 SolGold's management team was recognised as an example of excellence in the industry, and continue to strive to deliver objectives efficiently and in the interests of shareholders. SolGold is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective section of the Andean Copper Belt.

Ecuador dedicated to become a serious mining nation

Ecuador has, over the last 5 years, been recognised globally as a frontrunner in emerging mining nations as it develops regulatory and fiscal frameworks to facilitate the development of a fiscally, socially and environmentally strong and responsible mining industry.

Dedicated stakeholders

SolGold employs a staff of over 400 and at least 90% are Ecuadorean. This is expected to grow as the operations at Alpala, and in Ecuador generally, expand. SolGold focusses its operations to be safe, reliable and environmentally responsible and maintains close relationships with its local communities. SolGold has engaged an increasingly skilled refined and experienced team of geoscientists using state of the art geophysical and geochemical modelling applied to an extensive data base to enable the delivery of ore grade intersections from nearly every drill hole at Alpala.

About Cascabel and Alpala

The Alpala deposit is the main target in the Cascabel concession, located on the northern section of the heavily endowed Andean Copper Belt, the entirety of which is renowned as the base for nearly half of the world's copper production. The project area hosts mineralisation of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte in northern Ecuador, an approximately three hour drive north of Quito, close to water, power supply and Pacific ports (Figure 1).

Alpala has 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.

Having fulfilled its earn in requirements, SolGold is a registered shareholder with an unencumbered legal and beneficial 85% interest in ENSA (Exploraciones Novomining S.A.) which holds 100% of the Cascabel concession covering approximately 50km². The junior equity owner in ENSA is required to repay 15% of costs since SolGold's earn in was completed, from 90% of its share of distribution of earnings or dividends from ENSA or the Cascabel concession. It is also required to contribute to development or be diluted and if its interest falls below 10%, it shall reduce to a 0.5% NSR royalty which SolGold may acquire for US$3.5m.

Approximately 123,500m of diamond drilling has been completed on the project. With 12 rigs currently active on the project (10 rigs drilling on the Alpala cluster (Figure 2), and 2 rigs drilling at the Aguinaga prospect (Figure 3)), SolGold produces some 10,000m of core every month. The Cascabel drill program currently focusses on extending and upgrading the status of the Alpala Resource, as well as further drill testing of the rapidly evolving Aguinaga prospect. Drill testing of the Trivinio target has commenced, whilst the numerous other untested targets, namely at Moran, Cristal, Tandayama-America and Chinambicito, are flagged for drill testing as overall program demands allow.

Since the publication of the Alpala Maiden Mineral Resource Estimate in January 2018, which outlined a contained metal inventory of 5.2 million tonnes of copper and 12.6 million ounces of gold, the company has nearly doubled both drilled and reported metreage and will produce a revised resource statement addressing the evident growth in the size of the deposit at the conclusion of the current Alpala drill programme. Investors should consult the technical report dated December 18, 2017 for a detailed account of the assumptions on which the estimates were based as well as any known legal, political, environmental and other risks that could materially affect the development of the resources.

Getting Alpala advanced towards development

SolGold has appointed feasibility management to initially address the production of a preliminary economic assessment (PEA), prior to the prefeasibility and feasibility studies.

The resource at the Alpala deposit boasts a high grade core which, in the event of the construction of a mine, is targeted to facilitate early cashflows and an accelerated payback of initial capital. SolGold is currently investigating development and financing options available to the company for the development of Cascabel on reaching feasibility.

SolGold's regional push

SolGold is using its successful and cost efficient blueprint established at Alpala, and Cascabel generally, to explore for additional world class projects across Ecuador. SolGold is the largest and most active concessionaire in Ecuador having recognised as early as 2014 that the country hosted the same untested prospectivity as the Northern Chilean section of the Andean Copper Belt, which accounts for some 25% of the world's copper resources.

The Company believes Alpala is just the beginning for SolGold in Ecuador. The company wholly owns four other subsidiaries active throughout the country that are now focussed on ten high priority gold and copper resource targets, several of which the Company believes have the potential, subject to resource definition and feasibility, to be developed in close succession or even on a more accelerated basis from Alpala.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange (LSE/TSX: SOLG). The company has on issue a total of 1,696,245,686 fully-paid ordinary shares, 31,795,884 share options exercisable at 28p; 9,795,884 share options exercisable at 14p and 46,762,000 share options exercisable at 60p.

Seewww.solgold.com.aufor more information. Follow us on twitter @SolGold_plc

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 the TSX and LSE 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.

This release may contain 'forward‑looking information' within the meaning of applicable Canadian securities legislation. Forward‑looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. Generally, forward‑looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'.

Forward‑looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward‑looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‑looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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. 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 (1) Singer and Menzie, 2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer, 1995; (5) Laznicka, 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 and its external consultants prepared an initial mineral resource estimate at the Cascabel Project in December 2017. Results are summarised in Table Battached.

The Mineral Resource Estimate was completed from 53,616m of drilling, approximately 84% of 63,500m metres drilled as of mid-December 2017, the cut-off date for the maiden resource calculation. There remains strong potential for further growth from more recent drilling results, and continue rapid growth of the deposit.

Any development or mining potential for the project remains speculative.

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%.

On the basis of the drilling results to date and the results of the Alpala Maiden Mineral Resource Estimate, 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 A.

References cited in the text:

Notes: