Mr. Francois Auclair reports

ALGOLD PROVIDES AN UPDATE ON MAURITANIA EXPLORATION

Algold Resources Ltd. has provided an update on its third quarter/fourth quarter 2015 exploration program currently under way on both the Kneivissat and Legouessi properties in Mauritania. Algold has just completed its 72-line-kilometre IP geophysical survey as well as a 75-line-kilometre ground magnetic survey over parts of its Legouessi and Kneivissat properties. Concurrently with the geophysical survey, a geological mapping and rock chip sampling program was undertaken with a total of 50 samples collected and sent for analysis at ALS Laboratories (assays pending). A full report from Algold's geophysical consultant is expected prior to year-end.

The recent mag survey covered part of the LC prospect, a newly identified mineralized area situated to the northeast of the SL prospect on the Legouessi property. This area was not included in the course of previous geophysical surveys carried out by Caracal between 2007 and 2011. In addition, this latest IP survey covered both Legouessi LC and SL prospects as well as the KC-LSO prospect. The LC prospect extrapolation map of the 150-metre vertical depth contour shows two major IP chargeability anomalies. The most important anomaly is situated in the northeast sector of the area surveyed, indicating a chargeable unit that is parallel to the main east-west lithotectonic orientation. A number of rock outcrops were mapped in the same area displaying copper sulphide mineralization. On one of the rock outcrops, the presence of copper, gold and silver mineralization was noted.

The second anomaly trending northwest-southeast is situated in the northwestern portion of the surveyed land. This chargeability anomaly is parallel to the main lithotectonic orientation and is coincident to high resistivity. This same area yielded a number of gold-bearing rock samples during Algold's previous mapping program (reference: Algold's press release dated March 3, 2015).

"The presence of lapillis tuffs with copper-gold-bearing mineralization associated with a large chargeable unit is an indicator of the potentiality of a gold-rich VMS type structure in the LC prospect area," said Francois Auclair, chief executive officer, Algold. "Owing to consistent positive information and results from exploration, we remain very optimistic about the future potential of our permitted properties in Mauritania."

Algold anticipates the commencement of an RC drilling program on the very promising KC-LSO, LC and SL prospects immediately following reception of both the geophysical report and assays results in early first quarter 2016.

Adjustment to Algold's participation in Legouessi exploration licence joint venture company

In accordance with an earn-in agreement entered into on Oct. 20, 2015, the corporation acquired a 51-per-cent interest in Norex, a newly incorporated joint venture company, 49 per cent owned by Caracal, to own, explore, develop and operate the Legouessi exploration licence. Subsequent to the incorporation of Norex, the corporation entered into an agreement whereby Wafa waived the $200,000 (U.S.) payment required in accordance with the January, 2013, agreement in exchange for a fixed 5.1-per-cent participation in Norex, thus bringing Algold's participation to 45.9 per cent.

Shares issued for settlement of debt

Algold also announces that it has completed a transaction under which $15,000 in debt owed by Algold to an arm's-length third party in connection with professional services rendered to the corporation has been converted into a total of 100,000 common shares at a price of 15 cents each.

Quality assurance/quality control (QA/QC)

Analytical work for soil geochemical samples and rock chip samples is carried out at the independent ALS Abilab Laboratories Ltd. in Bamako, Mali. Samples are stored at Algold's field camp and put into sealed bags until delivered by a geologist to the ALS preparation laboratory in Nouakchott, Mauritania. RC samples were combined to create two-metre composite samples. QA/QC procedures are followed and 2 per cent gold standard, 2 per cent blank and 2 per cent duplicates are added to the samples batch. Soil samples are sieved and prepared for shipping to Bamako. In Bamako, samples are crushed and pulverized to 200 mesh (80 micron) and a 30-gram split is analyzed by fire assay with an AA finish. ICP analysis are conducted at the ALS Chemex Vancouver laboratory.

Blanks and duplicates are used to monitor laboratory performance during the analysis. Analytical work for the drilling program conducted by Caracal was carried out at the ALS Irish laboratory under the supervision of a senior geologist.

This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by Andre Ciesielski, DSc, PGeo, Algold Resources Ltd., lead consulting geologist and qualified person.

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