Mr. Christian Milau reports

TRUE GOLD RESUMES CONSTRUCTION AT KARMA

True Gold Mining Inc. has resumed activity at its Karma gold project in Burkina Faso. The company expects to pour first gold at Karma in March, 2016.

All amounts in U.S. dollars unless otherwise indicated.

Specific developments related to the restart of activity include the following:

• A site cleanup and a repair program have begun with a ramp-up to full construction set for the end of the month. Specific activities planned in the coming weeks include the remobilizing and commissioning of the mine fleet, ordering of liners and piping, and surveying of ponds and other locations. The local work force will be re-engaged as construction accelerates.
• True Gold and the government of Burkina Faso will continue extensive communication and discussion with community leaders through a reconstituted community liaison committee.
• Karma remains fully financed through construction to first gold pour, which is expected in March, 2016. True Gold has $31-million in cash, and up to $62-million under the company's finance facility with approximately $70-million of project cost remaining. The company continues to have full support from its partners, Franco-Nevada and Sandstorm Gold.

"We are pleased to be returning to work at Karma with the support of the government of Burkina Faso and leaders in the local community," said Christian Milau, president and chief executive officer, True Gold Mining. "We have said from the beginning of this process that it is our intention to work towards a long-term solution that builds trust with stakeholders in the community and reduces the risk of similar challenges in the future. As we move toward full construction, we remain committed to delivering long-lasting benefits to the local communities and to the country.

"We are grateful for the support and commitment that our employees, shareholders and our valued partners in Burkina Faso have provided over the past several months to get us to this important juncture. Karma is now in select company, with only a handful of gold mines coming on stream globally over the next year," added Mr. Milau.

Karma project highlights

Karma has $62-million spent and committed to date, including the mine fleet which has been delivered and is in the final stages of commissioning. Earthworks for the plant site, plant site terraces, maintenance shop, welding bay, administration and medical buildings are 100 per cent complete. Mine stores and the laboratory are 90 per cent complete with civil construction 41 per cent completed.

True Gold views Karma, which is fully financed and fully permitted, as a strong foundation upon which to build a leading mid-tier mining company. The mine is a technically simple open-pit heap leach project that offers low capital and operating costs, rapid payback and strong financial performance. Once in production, Karma will be one of the lowest-cost gold mines in West Africa with significant exploration growth potential that could add years to the life of mine. Economic highlights:

• Feasibility study: after-tax IRR of 46.3 per cent, NPV5 per cent of $198.8-million at $1,250-per-ounce gold;
• Phase II -- North Kao PEA: after-tax IRR of 213 per cent, NPV5 per cent of $69.6-million at $1,250-per-ounce gold;
• Phase III -- large resource base and multiple targets for long-term growth.

It is estimated that Karma will deliver approximately $160-million in revenue to the government of Burkina Faso during the life of the mine through a net smelter royalty, corporate taxes and a 10-per-cent carried interest. The mine will also provide extensive local investment in infrastructure, education and procurement.

The estimated figures provided are from the Karma project definitive feasibility study, dated Dec. 17, 2013, and the North Kao PEA dated Aug. 10, 2014 (which are available under the company's profile on SEDAR), and based on the assumptions made therein. The estimated figures can be affected by a number of factors, including but not limited to gold prices, consumables pricing, labour, materials and contract pricing.

Peter C. Carter, PEng, chief operating officer and vice-president engineering of the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects, and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.

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