Mr. Christian Milau reports

TRUE GOLD PROVIDES CONSTRUCTION UPDATE FOR KARMA MINE

True Gold Mining Inc. has drawn down an additional $14-million of the $100-million financing from Franco-Nevada (Barbados) Corp. and Sandstorm Gold Bank Ltd. This is the third drawdown that True Gold has made under the facility, bringing the total amount drawn to $71.6-million. The company currently has approximately $37.5-million in cash. Construction remains on schedule with the planned placing of ore on the heap-leach pads in early 2016 and first gold pour anticipated for the end of first quarter 2016.

Christian Milau, president and chief executive officer of True Gold, stated: "There is an atmosphere of excitement on site with a work force of over 500 focusing on earthworks and the processing plant final assembly. We have progressed rapidly with site development and construction, highlighted by commissioning of the mine fleet, completion of the raw water pond excavation and initial construction of the raw water pipeline."

Construction update

The Karma mine is in full construction with all required personnel on-site. Highlights since the last project update (see news release dated June 17, 2015) include:

• Excavation of raw water pond completed;
• Burying of the barrage raw water pipeline commenced;
• Water pipeline from barrage to site 20 per cent complete;
• Excavation of storm water pond commenced;
• Excavation of pregnant leach solution (PLS) pond commenced;
• Stripping of cell 1 of heap-leach pad completed;
• Mine fleet commissioned (six Komatsu 785 trucks, PC 3000 excavator, WA800 loader);
• Assembly of hard rock crusher has commenced;
• Assembly of absorption, desorption and refining (ADR) plant structural steel has commenced.

Planned infrastructure activities upon delivery at site:

• Assembly of assay lab;
• Assembly of gold room structural steel;
• Assembly of the cement silos;
• Commissioning of the remaining three generators and full completion of the power plant.

David Laing, chief operating officer of True Gold, is the designated qualified person for this news release within the meaning of National Instrument 43-101, 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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