Ms. Joanne Freeze reports

CANDENTE GOLD ANNOUNCES EL ORO TAILINGS INFERRED RESOURCE CONTAINS 119,900 OZ GOLD AND 3M OZ SILVER

Candente Gold Corp. has completed an inferred mineral resource estimate on the Mexico mines tailings deposit under option from the Municipality of El Oro de Hidalgo in Mexico.

                          INFERRED RESOURCE ESTIMATE(i)

Classification      Tonnes     Au g/t     Ag g/t     Ounces Au     Ounces Ag

Inferred         1,267,400       2.94      75.12       119,900     3,061,200

(i) Mineral resources are not mineral reserves and do not have demonstrated 
economic viability. All figures have been rounded to reflect the accuracy of 
the estimate.

An increase of approximately 40 per cent on gold content and 30 per cent on silver content from historic assessments is attributed to two main factors. Recent topographic surveying generated a more accurate surface expression of the tailings resulting in an increase from 5.6 to 6.8 hectares and an increase in the bulk density to 1.5 kilograms per cubic metre from 1.3 kilograms per cubic metre, which had been used in historic assessments. A bulk density of 1.5 kilograms per cubic metre is considered more typical for old settled tailings produced by grinding that have had time to drain, as these old tailings are not contained in a tailings impoundment.

"This mineral resource estimate will now be the basis for a preliminary economic assessment of the El Oro Mexico mine tailings, which we anticipate will demonstrate both very positive potential and a clear path forward for a tailings recovery operation as recommended by JDS Energy and Mining Inc. in their high-level conceptual study (news release April 15, 2014)," commented Joanne Freeze, PGeo, president and chief executive officer of Candente Gold.

The estimate reflects the results of the recently completed (May, 2014) auger and channel sampling program (see news release dated June 26, 2014) as compared with extensive historic assessments including drill testing and metallurgical testwork. The 2014 verification sampling program of the 1990 historic results was completed through systematic sampling of the upper three metres of the tailings with a hand auger and vertical channel sampling the lower five to 10 metres of the tailings dump. In 1990, Luismin drilled 297.7 metres in 22 holes and in 1951, the Cooperativa de Las Dos Estrellas drilled 2,162.7 metres in 184 holes. A National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report documenting the updated mineral resource estimate will be filed on SEDAR within 45 days. The mineral resources reported herein have been estimated using criteria consistent with the Canadian Institute of Mining and Metallurgy Definition Standards (2014) and in conformity with the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice" (2003) guidelines. The contained metal figures shown are in situ. No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Some summations may not agree due to rounding. This reported mineral resource has an effective date of July 8, 2014.

It is reasonably expected that the majority of the inferred mineral resources could be upgraded to indicated mineral resources with infill drilling, additional sampling, metallurgical testing, specific gravity and bulk density estimations, confirmation of grade/quality continuity and with current quality assurance and quality control standards. In addition, mining methods, mineral processing, infrastructure, economic, marketing, legal, environmental, social and governmental factors would need to be considered.

Qualified persons

Allan Reeves, PGeo, principal of Tuun Consulting, and Nadia M. Caira, PGeo, principal of World Metals Inc., are the qualified persons as defined by National Instrument 43-101. Mr. Reeves is responsible for the mineral resources reported above and he has reviewed and approved disclosure of these mineral resources. Ms. Caira is responsible for the geological and sampling including quality assurance and control for the project and has reviewed and approved this disclosure.

Estimation parameters

The Mexico mine tailings mineral resource was constrained on the west and north by an offset of 30 metres from an existing highway and is reported at a cut-off grade of 2.5 grams per tonne gold equivalent. Gold and silver recoveries used were 50 per cent and 50 per cent, respectively. Metal prices used were 12-month rolling averages for: gold $1,304.92 (U.S.) per ounce and silver $20.67 (U.S.) per ounce. Mining and processing costs, and general and administrative costs used were $7 (U.S.), $27 (U.S.) and $11 (U.S.) per tonne, respectively.

Quality assurance and control

A total of 123 samples in security-sealed buckets were driven by a Candente employee for sample preparation to ALS Guadalajara, Mexico. The sample pulps were then sent to ALS Vancouver for gold by fire assay of a 50-gram charge (Au-AA23) with ICP-ES or AAS finish and were completed with a gravimetric finish. Silver was determined by ME-MS41, a 41-element analysis with overlimits (greater than 100 parts per million silver) completed by fire assay with gravimetric finish (Ag-OG46). Quality assurance/quality control included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch.

Background on the tailings

In 2013, Candente Gold acquired the right to process historic tailings left from pre-1930s milling of ores from the Mexico mine in the El Oro district in Mexico state, Mexico. The tailings deposit lies within the town of El Oro and are adjacent to existing road access, power and water services.

In April, 2014, JDS Energy and Mining Inc. conducted a high-level conceptual study for a tailings recovery operation near to the El Oro site. The company's strategy is to look for opportunities to develop cash flow in the near term with relatively low capital costs. Study results indicate that the Mexican mine tailings from El Oro have the potential to meet this criterion and justify further study on the economic potential of a TRO.

As part of the conceptual study JDS evaluated a variety of metallurgical processes, which have been historically tested by various parties for gold and silver extraction from the tailings. Considering only industry-standard metallurgical processes typically utilized by other operations, the historical metallurgical testwork on El Oro tailings indicates that minimum overall recoveries of 50 per cent may be expected, however testwork also indicates potential for higher recoveries of 60 per cent to 70 per cent.

In keeping with both environmental and social responsibility policies of Candente Gold, the proposed TRO would see the company provide the El Oro municipality with a remediation program, which would include relocation of the tailings from the current site, within the town, to a nearby greenfields process facility in an unpopulated and underutilized area. Once treated the tailings would be contained by an engineered structure designed to international standards. This would both remediate current potential environmental risks and rehabilitate the current land, making it available for the town's future development.

Three other tailings deposits also exist within the municipality of El Oro and are included in the agreement but require further testing and evaluations prior to making a decision to reprocess and reclaim.

For more details, you may view the El Oro tailings update presentation on the company's website.

We seek Safe Harbor.