Dr. Bill Pearson reports

COASTAL GOLD INTERSECTS 1.66 GRAMS GOLD PER TONNE OVER 12.3 METRES IN SOUTHWEST PIT EXTENSION AT HOPE BROOK GOLD PROJECT, NEWFOUNDLAND

Coastal Gold Corp. has completed the 2013 resource definition diamond drill program at its 100-per-cent-owned Hope Brook gold project in southwestern Newfoundland. A total of 4,075 metres of drilling in 26 holes were completed to test the Footwall target (six holes -- see press releases dated Sept. 16, 2013, and Sept. 25, 2013) and the Southwest pit extension target (20 holes -- see press release dated Oct. 7, 2013). Assays have been received for 14 of the 20 drill holes that tested the SW pit extension target.

Resource definition drilling program highlights:

• Hole HB13-125 intersected 1.66 grams gold per tonne over a core length of 12.3 metres, including 2.75 grams per tonne gold over 6.1 m;
• Hole HB13-130 intersected 1.81 grams per tonne gold over 11.0 metres core length, including 3.38 grams per tonne gold over 4.8 metres;
• Hole HB13-131 intersected 1.29 grams per tonne gold over a core length of 18.0 metres, including 2.53 grams per tonne gold over 5.8 metres.

Dr. Bill Pearson, PGeo, president and chief executive officer of Coastal Gold, commented: "The 2013 resource definition drilling program has been successful in confirming significant mineralization in the Footwall target and significantly extending known mineralization in the SW pit extension target. The new drill results will be used to prepare an updated geological model on which an updated mineral resource estimate will be based. The updated resource estimate is expected to be released before the end of 2013."

David Copeland, chief geologist of Coastal Gold, commented: "All 20 holes completed in the SW pit extension area have intersected significant widths of silicification and we continue to encounter higher-grade mineralization (greater than two grams per tonne gold) with local copper within a broader, more extensive lower-grade mineralized zone, which is typical of the Hope Brook-style mineralization. These results are expected to improve and expand the gold resource at Hope Brook."

Tailings vibracore drilling program

The company also announces that it has completed the planned tailings vibracore drilling program. A total of 73 vibracore drill holes totalling 155 metres were completed on an approximate 100-metre-square 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. Fifty-four of the 73 drill holes successfully sampled tailings with a thickness ranging from 0.3 to six metres and an average thickness of three metres. The remainder of the holes encountered bedrock in areas where the tailings ponds where not filled. The previous shallow piston core sampling program indicated that the tailings contain an average grade of approximately one gram per tonne gold (see news releases dated March 29, 2012, and April 24, 2012). Assays are currently pending for 125 tailings and control samples from the vibracore drilling program.

                                   DRILL RESULTS

                                       Core       True                      
                 From         To     length      width         Au         Cu
Hole No.           (m)        (m)        (m)        (m)      (ppm)        (%)

HB13-124        133.5      141.5        8.0        6.3       0.73       0.46
and             148.3      154.7        6.4        5.0       1.93       0.01
HB13-125         26.5       38.8       12.3        8.7       1.66       0.23
incl.            26.5       32.6        6.1        4.3       2.75       0.38
and              56.9       60.1        3.2        2.3       3.31       0.01
HB13-126        181.1      193.5       12.4        7.8       0.67       0.01
incl.           181.1      185.0        3.9        2.5       0.85       0.02
HB13-127         22.0       36.3       14.3       12.6       0.82       0.01
incl.            29.0       34.2        5.2        4.6       1.12      trace
and              56.1       59.4        3.3        2.9       1.07      trace
HB13-128         60.4       66.3        5.9        5.2       1.09       0.01
and              81.0       84.2        3.2        2.8       0.68       0.04
HB13-129        101.0      103.0        2.0        1.2       1.09       0.01
and             125.0      126.8        1.8        1.1       1.29       0.36
and             149.2      156.4        7.2        4.4       1.46       0.01
HB13-130         64.0       68.0        4.0        2.9       1.17       0.06
and              92.5      103.5       11.0        8.0       1.81       0.24
incl.            93.9       98.7        4.8        3.5       3.38       0.52
HB13-131        102.4      120.4       18.0       10.3       1.29       0.11
incl.           108.1      120.4       12.3        7.1       1.58       0.08
incl.           114.6      120.4        5.8        3.3       2.53       0.13

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 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.

The vibracore drilling program is a low-impact coring method that allows for recovery of unconsolidated sediments using a four-inch diameter aluminum core tube. The tailings core was logged, photographed and then split in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples will be 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 will be dry 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 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 silica sand 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, and a qualified person as defined by National Instrument 43-101, have reviewed and approved the scientific and technical content of this news release.

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