Mr. Trey Wasser reports

ELY GOLD ISSUES CORPORATE UPDATE

Ely Gold & Minerals Inc. has issued the following corporate update. Following the closing of the sale of its interest in the Mount Hamilton joint venture in August, 2015, the company has completed an initial drill program on its 100-per-cent-owned Green Springs property in White Pine county, Nevada. In a news release dated Nov. 30, 2015, the results of the drill program were released.

Drill highlights included:

• An intercept of 4.57 grams per tonne gold over 41.1 metres;
• An intercept of 1.18 g/t over 47.2 metres.

The company has signed confidentiality agreements with several companies and is currently evaluating the possibility of a joint venture to advance the Green Springs project. Meanwhile, the company is also using the data acquired from the 2015 drill program to evaluate an additional drill program in late spring 2016.

As a result of the Mount Hamilton sale agreements, the company returned 15,732,274 common shares to the treasury and now has a total of 64,580,474 shares outstanding. Following the payment of all expenses related to the drill program, the company has a cash balance of $4.84-million, which is equal to 7.5 cents per share. The company has no debt.

Subsequent to the company's annual general meeting, Tom Wharton was appointed to the board of directors. He has over 30 years of experience in start-up, development and financing of early-stage companies. He has served as chief financial officer, chief executive officer and board member for various private and public companies. He is currently on the board of Angel Gold, DV Resources and Dolly Varden Silver.

The company has been actively seeking to acquire and/or stake additional properties in Nevada to build a property portfolio in anticipation of a rebound in the resource sector. Management has reviewed several opportunities and has been engaged in serious negotiations with a privately owned company in that regard since mid-2015. Negotiations were interrupted late in 2015 due to differences over the formal agreement, and the matter was referred to the Second Judicial Court for Washoe county for a determination (case No. CV12-02023). A hearing was held on Feb. 3, 2016, and an order was issued in the company's favour on Feb. 4 (transaction No. 5354550) regarding certain non-Nevada properties. No final order was made regarding the other issues in question. Prior to the hearing, the company renewed negotiations with the private company, and, while there can be no assurance that a transaction will be completed, management remains optimistic that the outstanding deal points can be resolved and a formal agreement can be concluded in the near future. The company will issue additional updates as circumstances dictate.

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