Ms. Naomi Nemeth reports

CONTINENTAL GOLD LIMITED ANNOUNCES $57,000,000 PRIVATE PLACEMENT FINANCING

Continental Gold Ltd. has entered a financing agreement pursuant to which a syndicate co-led by TD Securities Inc. and Clarus Securities Inc. has offered to purchase, on a bought deal private placement basis, 10 million units of Continental at a price of $5.70 per unit, for total gross proceeds of $57-million. Continental Gold has also granted the underwriters an option to purchase up to an additional two million units, which is exercisable by the underwriters at any time up to two business days prior to closing.

Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of $7.50 during the period ending 24 months following the closing of the offering. In the event that the closing sale price of Continental's common shares on the Toronto Stock Exchange is greater than $9.75 per share for a period of 20 consecutive trading days, at any time after closing of the offering, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof. In such case, the warrants will expire on the 30th day after the date on which such notice is given by the company.

The units issued with respect to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

The closing of the offering is expected to occur on or about Sept. 16, 2010, and is subject to receipt of all necessary regulatory approvals, including that of the TSX.

The net proceeds from the offering will be used to finance development of Continental's mineral properties in Colombia and for general corporate purposes.