Dr. Bill Pearson reports

COASTAL GOLD EXTENDS KNOWN MINERALIZATION INTERSECTING 4.09 G AU/T OVER 13.5 METRES AT HOPE BROOK GOLD PROJECT, NEWFOUNDLAND

Coastal Gold Corp. is releasing initial results from the 2013 resource definition diamond drill program at its 100-per-cent-owned Hope Brook gold project in southwestern Newfoundland. The first six holes, totalling 1,014 metres, have focused on testing the newly developed Footwall target (see news release Aug. 6, 2013), where it appears that previous mining may have left significant higher-grade mineralization in the footwall side of the stopes. Assay results have been received from the first two holes.

Drill program highlights:

• Hole HB13-113 intersected high-grade mineralization on the footwall of the 5015-170 stope, grading 4.09 grams gold per tonne over a core length of 13.5 metres.
• Hole HB13-112, approximately 50 metres northeast of HB13-113, intersected 2.99 grams gold per tonne over a core length of 10 metres in the footwall of the 5015-165 stope.

Dr. Bill Pearson, president and chief executive officer of Coastal Gold, commented: "Our drill program is off to a strong start. Initial results have confirmed the presence of a significant thickness of higher-grade mineralization in the footwall of stopes in the upper part of the former mine. We completed the program for the Footwall target with five fewer holes than originally planned. The extra metreage has been reallocated to expanding drilling on the SW Pit Extension target, which is in progress."

Dr. Pearson further commented: "An important objective of this drill program is not only to expand the existing mineral resource but also to increase the overall grade. We hope to accomplish this by filling in areas with limited previous drilling, redrilling certain historical holes that appear to have significantly underestimated grade and updating our geological interpretation. All of this work we believe will lead to a higher-grade resource on which to base the PEA study in progress. The updated resource is expected to be completed by the end of this year and the PEA completed by early 2014."

To date, 2,127 metres of drilling in 13 holes have been completed, with assay results pending on 11 holes. The first six holes tested the Footwall target and the next seven holes are in the SW Pit Extension target. The table lists significant results.

  SIGNIFICANT ASSAY RESULTS, 2013 DRILL PROGRAM -- HOPE BROOK GOLD PROJECT                                   

Hole No.      From (m) To (m) Core length (m) True width (m) Au (g/t) Cu (%)

HB13-112         144.0  154.0            10.0            4.9     2.99   0.01
incl.            145.0  149.0             4.0            2.0     4.69   0.01
HB13-113         150.1  163.6            13.5            6.3     4.09   0.04
incl.            155.1  163.6             8.5            4.0     5.42   0.04

Note: Assays are pending for holes HB13-114 to HB13-124.                     

Sampling, assaying and quality control

The core (NQ (47.6 millimetres) and BQ (36.5 millimetres)) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Minerals, with sample preparation done in Sudbury and analytical work done in North Vancouver. All locations of ALS Minerals are ISO 9001:2000 certified. The entire sample received is weighed and crushed to 70 per cent passing two millimetres (10 mesh). A sample split of up to 1,000 grams is then pulverized to 85 per cent passing 75 microns (200 mesh) to produce a homogenized sample. A 50-gram aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four-acid-digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 parts per million are assayed further by a four-acid-digestion and ore-grade ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Coastal Gold also inserts external reference standards, as well as blank granite drill core in each sample batch as a further external check.

Qualified persons

David Copeland, PGeo, chief geologist, who is a qualified person as defined by National Instrument 43-101, supervised the diamond drilling program at Hope Brook. Mr. Copeland and Dr. Bill Pearson, PGeo, president and chief executive officer of Coastal Gold, both qualified persons as defined by National Instrument 43-101, have reviewed and approved the scientific and technical content of this news release.

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