Mr. Paul Begin reports

CONTINENTAL GOLD PROVIDES UPDATE ON THE COLOMBIAN GOVERNMENT OPERATION TO PERMANENTLY CLOSE ALL ILLEGAL MINES IN BURITICA

Continental Gold Inc. has been informed by the Colombian government that the major joint operation initiated on April 23, 2016 -- to permanently close all illegal mines and processing plants operating within the company's exploitation and exploration licences at the Buritica project -- has thus far advanced peacefully and according to plan. The joint operation includes the national government of Colombia, the state government of Antioquia and the municipal government of Buritica. Additionally, the company's small-scale operating mine remains unaffected by the intervention.

In a publicly aired address to media in Medellin, Colombia, on May 24, 2016, the Governor of Antioquia, Luis Perez, noted that the intervention plan against illegal mining has "advanced 64 per cent to date," and he stated: "We will stay there [Buritica] for a while; if someone there is in hiding, believing that we will leave this coming Sunday, he will have to wise up because if we need to remain at Buritica for three, six, nine months or a year, we will do it. We will ensure Buritica becomes an example of peaceful mining." He added, in reference to the conditions at Buritica and nearby towns: "Regulated conditions are in the process of returning to these municipalities. They have become normal -- the markets, food, housing prices and invasions [by non-residents] have diminished substantially."

The intervention is a direct result of the national government's initiative to eliminate illegal mining, through which there have been several similar interventions recently in other parts of the country. It also reflects the newly elected (Jan. 1, 2016) state government of Antioquia's full alignment with the national government's agenda to support legal, private sector mining, as well as the formalization of small-scale local traditional miners. These efforts are also in response to the Jan. 20, 2016, resolution No. VSC-055 issued by the National Mining Agency of Colombia (ANM) in which illegal mines at Buritica were ordered to be permanently closed, due to significant safety concerns generated by unsafe and non-technical practices.

The company continues to fully co-operate with the national, regional and municipal authorities, operating within the framework of Colombian law and international standards and providing support to the community of Buritica. Even though the intervention has gone well to date, with the vast majority of illegal miners having left the region, the potential for media attention remains elevated and shareholders are therefore urged to contact the company directly with any queries.

The company also wishes to reiterate that it expects the current operation by the Colombian authorities to pave the way for increased territorial control by the government in the region. The increased control, in conjunction with the substantial investment currently being made in the economic and social development of the region and in key environmental conservation initiatives by the company, strategic non-government organizations, the government and the private sector, will further strengthen the process of permitting, constructing and operating a mine at the company's multimillion-ounce high-grade Buritica project.

We seek Safe Harbor.