Sunridge Gold : Announces the Formation of the Asmara Mining Share Company

Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF: OTCQX) is pleased to announce that the Asmara Mining Share Company (“AMSC”) has recently been formed in Eritrea. AMSC is the operating entity which will own and operate the Asmara copper-zinc-gold mine in Eritrea. The Asmara Project, equipment and all Eritrean employees are now being transferred from Sunridge Gold Eritrea to AMSC.

Sunridge President and CEO Michael Hopley said, “We are very happy to have completed the formation of AMSC and formalized our partnership with ENAMCO on the Asmara Project. This means that we can now rapidly push the project towards the start of Phase 1 production next year. Also, the money that we have recently received from ENAMCO puts Sunridge in a strong cash situation particularly because of our current low expenditure rate on the project.”

AMSC is owned 60% by Sunridge and 40% by Eritrean National Mining Corporation (“ENAMCO”) (30% participating and 10% free carried interest) and is governed by a Shareholders’ Agreement. AMSC has a board of directors of five, comprising three from Sunridge and two from ENAMCO. Michael Hopley, President and CEO of Sunridge has been appointed Chairman of AMSC. All future project development or exploration costs will be shared two-thirds Sunridge and one-third ENAMCO. The Government of Eritrea established ENAMCO in 2006 for the purpose of holding government ownership interests and to promote the development of the mining industry in Eritrea.

A summary of key facts related to Sunridge, the Asmara Project and the formation of AMSC are as follows:

• ENAMCO is paying Sunridge US$18.33 million for its 30% participating interest in the Asmara Project; US$2 million was received in July, another US$1 million plus interest has just been received and a further US$2 million is scheduled to be received before the end of November 2014;
• Pursuant to the Shareholders’ Agreement, the parties have agreed that ENAMCO will contribute one-third of the expenditures on the Asmara Project retroactive to July 4, 2012, the date ENAMCO delivered its notice of intention to exercise its option. Based on Sunridge’s expenditure on the project during that period ENAMCO has agreed to fund the next US$6 million of project expenses through AMSC;
• After ENAMCO has funded the next US$6 million of project expenses Sunridge will be responsible for 66⅔% and ENAMCO 33⅓% of all future project funding; and
• With the establishment of AMSC, Sunridge and ENAMCO are jointly working on acquiring the mining license for the Asmara Project, which is expected early next year.

ABOUT SUNRIDGE:

Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea. Sunridge currently has approximately 210 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Greg Davis at the number listed below.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward looking statements may include the timing and success of any application for a mining license, permitting or of debt financing. Risk and uncertain factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, a mining license, or debt financing, uncertainties in negotiating commercial arrangements with government entities; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.