Mr. Bernard Tourillon reports

URAGOLD NOT AFFECT BY FERROATLANTICA DECISION TO PULL OUT OF PORT CARTIER, QUEBEC PROJECT

Uragold Bay Resources Inc. is informing its shareholders that the major silicon metal producer (first producer) that confirmed that Uragold's Roncevaux material is highly suited for silicon metal production and that has expressed interest in purchasing 20,000 to 50,000 tons annually of high-purity lump quartz from Roncevaux (see press release from March 2, 2015), as well as the second producer that has requested samples from the Roncevaux property (see press release from Aug. 27, 2015) was not FerroAtlantica.

Bernard Tourillon, chairman and chief executive officer of Uragold, stated, "The decision of FerroAtlantica to cancel its development projects in Port Cartier, Que., has no bearing on Uragold business model based on developing our quartz deposits and the implementation of the Purevap quartz vaporization reactor (QCR) technology for the solar industry."

The Purevap impact -- highest purity, lowest cost supplier to solar industry

The Purevap QVR is a proprietary technology (patent pending) developed by PyroGenesis Canada Inc. to which Uragold has been granted a worldwide exclusive right of usage that uses a plasma arc within a vacuum furnace. This unique one-step technology should allow Uragold to become a vertically integrated and disruptive player in the solar industry through the conversion of its high-purity quartz projects into the highest-purity, lowest-cost supplier of high-purity silicon (99.99 per cent Si), solar-grade Si (6N/99.9999 per cent Si) and/or higher-purity Si (9N/99.9999999 per cent Si).

$12-billion (U.S.) annual industry, growing by more than 6 per cent per year

The silicon metal, solar-grade Si and/or higher-purity Si markets are in an industry worth $12-billion (U.S.) a year. Metallurgical-grade Si world consumption topped 2.25 million tons in 2014, exceeding $6-billion (U.S.) in sales. About 10 per cent of 2014 global metallurgical-grade Si production was further refined into solar-grade Si and and/or higher-purity Si, worth another $6-billion (U.S.). Propelled by increased demand for solar-grade silicon metal and polysilicon for photovoltaic solar panels, global silicon metal demand is expected to grow by more than 6 per cent per annum.

Private placement

Uragold announces that it is proceeding with a new non-brokered private placement of 8,396,000 units at five cents per unit for gross proceeds of $419,800. Insider participation in this placement could account up to 31 per cent of the total amount subscribed. The net proceeds from the private placement will be used for general corporate expenditures and exploration activities.

Each unit comprises one common share and one common share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one common share of the capital stock of the company at an exercise price of seven cents during a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four-month holding period from the date of closing of the placement. The placement is subject to standard regulatory approvals.

The proceeds will provide Uragold with resources to market its worldwide exclusive technology grant from PyroGenesis Canada to convert its highly coveted high-purity quartz projects into the highest-purity, lowest-cost supplier of solar-grade silicon metal and polysilicon to the solar industry (see press release from Sept. 30, 2015).

The company will pay a cash finder's fee of $1,278 and issue 25,560 warrants to Foster & Associates Financial Services Inc. of Toronto, Ont. Each warrant will give the right to purchase one common share at seven cents for 36 months.

Shares-for-services program

In accordance with the agreement between Uragold and Agoracom (see Uragold press release from July 18, 2014), the Uragold board has approved the issuance of 282,500 common shares at a deemed price of five cents per share for the outstanding debt of $14,125 for services rendered during the period from July 16, 2015, ending Oct. 15, 2015.

We seek Safe Harbor.