Dr. Bill Pearson reports

COASTAL GOLD COMMENCES TAILINGS CORING PROGRAM AT HOPE BROOK GOLD PROJECT, NEWFOUNDLAND

Coastal Gold Corp. has started the planned tailings vibracore drilling program at its 100-per-cent-owned Hope Brook gold project in southwestern Newfoundland.

The vibracore drilling program is focused on further evaluation of the gold content of the tailings at the former Hope Brook mine site as shown in an image on the company's website. The program comprises 70 vibracore drill holes on an approximate 100-square-metre grid over the two tailings ponds to evaluate the full thickness of the tailings and provide sufficient data to support a National Instrument 43-101-compliant mineral resource estimate. The previous shallow piston core sampling program indicated that the tailings contain an average grade of approximately one gram per tonne gold (g/t Au) (see news releases dated March 29, 2012, and April 24, 2012).

Dr. Bill Pearson, president and chief executive officer of Coastal Gold, commented: "The vibracore tailings drilling is another important step in our overall program to fully evaluate opportunities for potential gold resources at Hope Brook. The program will sample the complete tailings profile as well as provide important engineering information on capacity of the ponds. Our diamond drill program continues to move forward very well with more results to be released as they become available."

Shares for debt and cancellation of stock options

Coastal Gold has entered into a shares-for-debt settlement agreement whereby Coastal Gold will issue 271,140 common shares at a deemed price of five cents per share in settlement of dated accounts payable owing to a former employee of Coastal Gold in the amount of $13,557. The shares-for-debt settlement is subject to the approval of the TSX Venture Exchange. In addition, Coastal Gold has cancelled in total 1.38 million of its stock options having an exercise price of $1 or higher with the consent of the holders thereof.

We seek Safe Harbor.