Mr. Bob Baxter reports

ABZU ANNOUNCES THAT IT HAS RENEGOTIATED THEIR OPTION AGREEMENTS WITH RED BACK. NANGODI AND YAMERIGA LICENCES ARE NOW FULLY CONTROLLED BY ABZU

Abzu Gold Ltd. and its subsidiary, Abzu Resources Ghana Ltd., have entered into a termination and release agreement with Red Back Mining Ghana Ltd. dated Jan. 31, 2014, pursuant to which the 10 option agreements entered into with Red Back on June 24, 2011, have been terminated.

Bob Baxter, president and chief executive officer, commented, "Now having full control of the Nangodi and Yameriga licences allows Abzu Gold to advance its plans to develop the Nangodi project."

In conjunction with the termination and release agreement, the company and Red Back have also entered into a transfer and royalty agreement dated Jan. 31, 2014, pursuant to which Abzu will retain the rights to two of the licences, Yameriga and Nangodi, previously optioned in the option agreements. As consideration for these acquisitions, Abzu has granted a 2-per-cent net smelter royalty, payable in cash, on the sale of any minerals or products mined from the Yameriga and Nangodi licences, to Red Back.

These agreements will become effective upon receipt of consent from the minerals commission of Ghana. The company and Red Back are currently working to obtain such consent.

To date, the company has expended approximately $5.2-million on the Yameriga and Nangodi licences. Further information on the company's exploration efforts on these two properties is available on SEDAR, in the company's financial statements, management discussion and analysis, and news releases.

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