Dr. Bill Pearson reports

COASTAL GOLD REPORTS FINAL DRILL RESULTS AND COMMENCES WORK ON NI 43-101 MINERAL RESOURCE UPDATE FOR HOPE BROOK GOLD PROJECT, NEWFOUNDLAND

Coastal Gold Corp. has received final assays for 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 was completed and successfully tested the Footwall target (six holes -- see news releases dated Sept. 16, 2013, and Sept. 25, 2013) and the Southwest (SW) pit extension target (20 holes -- see news releases dated Oct. 7, 2013, and Oct. 21, 2013).

Resource definition drilling program

Highlights:

• Hole HB13-133 intersected 0.87 gram per tonne gold over a core length of 33.2 metres, including 1.29 grams per tonne gold over 6.0 metres.
• Hole HB13-135 intersected 1.23 grams per tonne gold over 7.9-metre core length, and hole HB13-136 intersected 1.65 grams per tonne gold over 4.0-metre core length.
• Mineralized silicified zone was intersected in each of the 20 drill holes within the SW pit extension target with an average true width of approximately 30 metres.

Dr. Bill Pearson, PGeo, president and chief executive officer of Coastal Gold, commented: "The resource definition drill program achieved its objective to better define the full extent of mineralization in both the Footwall and SW pit extension targets. We are now updating the NI 43-101 mineral resource estimate for the Hope Brook project. This update will incorporate new drilling data from both the recently completed program and the fall 2012 program, as well as an updated geological interpretation using the new structural model developed by our exploration team led by Dave Copeland, MSc, PGeo." Dr. Pearson further commented: "Work on the preliminary economic assessment is continuing to progress and will accelerate once the resource update is complete. We anticipate the resource update to be completed by mid-December and the PEA by early 2014."

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

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

HB13-132      141.7   158.5            16.8            7.6      0.69    0.02
incl.         155.0   158.5             3.5            1.6      1.22    0.03
and           178.9   179.7             0.8            0.4      2.01    0.01
HB13-133       57.3    90.5            33.2           29.0      0.87    0.02
incl.          62.0    71.0             9.0            7.9      1.16    0.02
incl.          81.0    87.0             6.0            5.2      1.29    0.03
HB13-134       79.0    83.2             4.2            3.7      0.63   Trace
and            89.2    98.9             9.7            8.5      0.64    0.01
and           107.0   109.0             2.0            1.7      0.90    0.01
HB13-135       68.5    88.9            20.4           18.0      0.87    0.04
incl.          68.5    74.0             5.5            4.9      1.11    0.03
incl.          81.0    88.9             7.9            7.0      1.23    0.06
and            83.0    88.9             5.9            5.2      1.41    0.06
HB13-136       33.3    37.3             4.0            3.5      1.65    0.01
HB13-137      104.1   123.0            18.9           11.9      0.70    0.02
incl.         107.9   120.0            12.1            7.6      0.87    0.03
incl.         118.0   120.5             2.5            1.6      2.07    0.03

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 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. David Copeland and Dr. Bill Pearson, PGeo, president and chief executive officer of Coastal Gold, and a qualified person as defined by NI 43-101, have reviewed and approved the scientific and technical content of this news release.

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