Mr. Francois Auclair reports

ALGOLD ANNOUNCES STRATEGIC ACQUISITION OF GRYPHON MINERALS' MAURITANIAN EXPLORATION LICENCES

Algold Resources Ltd.'s wholly owned subsidiary, Kanosak Barbados Inc., has entered into an arm's-length option agreement under which it has been granted a 90-day option to acquire from Gryphon Minerals Ltd. the Mauritanian Tijirit and Akjoujt exploration licences (permit numbers EL447, EL1117 and EL448), which are approximately 2,200 square kilometres in size.

Most importantly, this transaction will strengthen Algold's land position to 3,000 square kilometres in the Aoueouat Archean greenstone belt (Reguibat Shield) through the acquisition of the Tijirit property. This belt hosts the world-class Tasiast gold deposit with has proven and probable reserves of 9,644,000 ounces gold (175,533 tonnes at 1.71 grams per tonne Au) (Tasiast technical report dated March 31, 2014, see Kinross's website). Algold's qualified person is unable to verify this information with respect to Tasiast, which is not necessarily indicative of the mineralization on Tijirit. The option agreement also allow Algold to acquire the Akjoujt project, which is situated 30 kilometres east of First Quantum's Guelb Moghrein copper/gold mine (23.7 million tonnes grading 1.88 per cent copper and 1.41 g/t Au).

The Tijirit property comprises exploration licences No. 447 and No. 1117, with areas of 1,000 square kilometres and 460 square km, respectively. Tijirit is situated approximately 30 km southeast of the Tasiast gold deposit. Tijirit is considered a brownfield site owing to the more than 35,000 metres of reverse circulation and 3,500 m of diamond drilling that have been carried out on the property. Past exploration indicates a number of highly promising drill results on four gold prospects: Sophie I to II, Sophie III, Lily and Eleanor. Historical drill intersection highlights include SRC47: 16 m at 2.47 g/t Au, SRC24: 14 m at 4.01 g/t Au at Sophie I, LRC17: 16 m at 2.8 g/t Au at Lily and ERC4: six m at 17.63 g/t Au at Eleanor.

Akjoujt comprises exploration licence No. 448 and covers an area of 749 square km. Historical exploration performed on this property by Gryphon included more than 14,000 soil samples, 75 trenches and 18 RC by BRGM, and 15 RC for 879 m. Historical trenching highlights include 28 m at 3.51 g/t Au.

The agreement also grants an option to acquire Gryphon's 60-per-cent interest in Shield Saboussiri Mining Mauritania SA, an entity that owns a joint venture with respect to the Saboussiri project (permits No. EL236, No. EL879 and No. EL1074). Under the agreement, Algold may exercise its option on the Tijirit and Akjoujt exploration licences without also acquiring Gryphon's interest in Shield. If Algold exercises its option only in part, the consideration described below will remain unchanged.

Exploration completed on Saboussiri, comprising exploration licences No. 236 (33 square km), No. 879 (187 square km) and No. 1074 (971 square km), includes about 12,226 soil samples, five trenches, and four RC (707 m) and 11 diamond drill (1,411 m) holes. Historical drilling highlights include 22.3 m at 2.1 per cent copper, 12.7 m at 2.94 per cent Cu, 35 m at 1.44 per cent Cu and 33 m at 1.43 per cent Cu. (Assay results reference: Gryphon's press releases dated Aug. 5, 2013, and Dec. 12, 2014, and annual report dated Oct. 18, 2011.)

For the fiscal year ended June 30, 2015, Shield had net assets of $180,000, an intercompany loan of $4.6-million (that loan being its only material liability), shareholder equity of negative $4.4-million, no revenues and a net loss of $60,000 (all amounts are approximate and were converted from Mauritanian ouguiya as of Oct. 27, 2015).

"The exploration licences are an excellent addition to our highly prospective Legouessi and Kneivissat properties in Mauritania. Our already significant land portfolio within the mineral-rich Archean greenstone belt triples to more than 4,000 square km," stated Algold's president and chief executive officer, Francois Auclair. "Moreover, previous exploration conducted on the new properties serves to accelerate Algold's development in just a few short months. In a very challenging market, we are pleased with the opportunity to accelerate value creation for our shareholders."

The consideration payable by Algold under the agreement consists of the following:

• 1,666,666 Algold common shares in consideration of the option to be issued upon receipt of approval of the terms of the agreement from the TSX Venture Exchange;
• 8.7 million common shares upon the exercise of the option;
• A payment of $1.5-million, payable at the option of Algold either in cash or through the issuance of up to 12.5 million common shares upon the earlier of:
  • The date that is 90 days after Algold announces that there is a National Instrument 43-101-compliant mineral resource (of any one or more categories of measured, indicated or inferred) of 500,000 ounces on a gold-equivalent-ounce basis at any of the properties or combination thereof;
  • The later of the date which falls 15 months from the date of the agreement (but only if Algold has exercised the option) and the date on which the Mauritanian authorities communicate the renewal of the licences with respect to the properties;
• An additional cash payment of $1.5-million, payable within 90 days of achieving an NI 43-101-compliant mineral resource (of any one or more categories of measured, indicated or inferred) of one million ounces on a gold-equivalent-ounce basis at any of the properties or combination thereof.

The issue price of any milestone shares issued under the agreement will be the greater of the 20-day volume-weighted average price of the common shares on the TSX Venture Exchange up to the last business day before Algold's election to issue those milestone shares; and 12 cents. Algold has agreed not to issue to Gryphon a number of milestone shares that would cause Gryphon to become a new control person (as defined in the TSX-V's policies). If, as a result, Algold is unable to make the payment described above at item solely through the issuance of milestone shares, it must pay the shortfall in cash.

The Saboussiri property is subject to a right of first refusal in favour of a third party. If that right is exercised, Gryphon shall pay Algold an amount equal to that which Gryphon receives from the third party pursuant to the exercise of the pre-emptive right.

The granting of the option and the completion of this acquisition are conditional upon receiving TSX-V approval. All common shares issued under the agreement will be subject to a four-month hold period.

Quality assurance/quality control

This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by Andre Ciesielski, PGeo, DSc, Algold Resources' lead consulting geologist and qualified person.

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