Mr. Paul Begin reports

CONTINENTAL GOLD PRODUCES 59% MORE GOLD FROM TRIAL MINING STOPE ORE MILLED AT YARAGU COMPARED TO BLOCK MODEL ESTIMATE

Continental Gold Inc. has released positive gold reconciliation results from approximately 600 tonnes of recently extracted trial mining test ore that the company batch processed through its 30-tonne-per-day Yaragua mill located at the Buritica project, Antioquia, Colombia. Two vertically stacked stopes located along the HW vein in the Yaragua system, at a midpoint elevation of 1,525 RL measuring 20 metres along strike by 35 metres vertically by 2.60 metres wide, were mined using the mechanized long-hole method. All ore extracted from the stopes was systematically and thoroughly muck sampled and assayed, with final results significantly better than the current mineral resource block model estimate on grade, tonnes and ounces (see Dec. 18, 2017, company news release).

                               ESTIMATED STOPE PRODUCTION VS. ACTUAL RESULTS*

                                   Tonnes    Gold      Silver   Contained gold            Contained silver
                                            (g/t)       (g/t)             (oz)                        (oz)

Combined stope design               3,649    7.34          14              862                       1,652
Actual results                      4,627    8.60          18            1,285                       2,678
Increase from mineral resource
block model estimation               +27%    +17%        +26%             +49%                        +62%
  
* From Dec. 18, 2017, company news release.

A total of 594 tonnes of ore, recovered from the western portion of both the upper and lower stopes, were initially muck sampled and then batch processed through the company's 30-tonne-per-day Yaragua mill. The mill results have been reconciled with both the mineral resource estimate block model and subsequent muck sampling results. Final results are shown in the associated table.

 
          RECONCILIATION OF BATCH PROCESSED ORE FROM WESTERN PORTION OF UPPER AND LOWER TRIAL MINING STOPES

                                            Tonnes       Gold         Silver    Contained gold  Contained silver
                                                        (g/t)          (g/t)              (oz)              (oz)

Mineral resource block model (1)               622        5.4           12.3               109               246
Muck sample results                            616        8.4           16.2               167               320
Actual results from processing                 594        9.1           13.3               173               254
Difference between muck sampling
results and mineral
Resource block model                           -1%       +56%           +32%              +53%              +30%
Difference between actual results
from processing and mineral resource
block model                                    -5%       +69%            +8%              +59%               +3%

(1) Estimated using final stope design.

"Both gold grades and ounces produced continue to consistently reconcile better than estimates for the Buritica project and we are hopeful that it is a harbinger of what to expect from commercial production once it commences in 2020," commented Ari Sussman, chief executive officer. "Project construction continues to make positive gains and timelines remain on schedule."

Technical information

The technical information contained in this press release has been reviewed and approved by Donald Gray, chief operating officer of the company, who is a qualified person within the meaning of National Instrument 43-101.

Underground development along the veins was sampled by trained crews under the direct supervision of mine geologists. The sampling consisted of channel samples that were taken by hammer and chisel across the full width of the back every three metres along strike. Distinct geological zones were sampled separately (vein separate from wall rock), with minimum-maximum horizontal sample widths of 0.1 to 1.0 metre. The widths of the channels were adjusted so that each sample weighed approximately three kilograms. Sample locations were measured from a surveyed control point. Channel samples were also taken from advancing faces in the SG9521W sublevel along the hangingwall vein for comparison with back and drill hole sampling. Duplicate channel samples were collected with a frequency of one every 25 samples. Bar code tags were inserted into the individual sample bags by the geologist, including duplicates which were numbered in sequence with the primary samples. The bags were then secured with a cable tie and transported out of the mine by the sampling crew to a secure staging area on surface. Sample shipments were prepared by the sampling crew and approved by the mine geologist and chief geologist. All channel samples were transported from the gated mine compound in company vehicles to a sample preparation lab operated by ALS Colombia Ltd. in Medellin, Colombia. Samples were then shipped for analysis to ALS Peru's ISO 9001-accredited assay laboratory in Lima, Peru.

Muck samples, equivalent to 16 tonnes of broken material, were taken during stope extraction at a frequency of one sample from every four scoop buckets. Sampling was performed by the geology assistant, extracting four separate channels vertically across the face of the scoop bucket into large pails for the purpose of approximating as close as possible a representative sample of both coarse and fine rock fragments present in the muck. Each sample weighed approximately 40 kilograms. The large sample was reduced by cone and quartering on a canvas to two five-kilogram sample splits, which were placed in separate sample bags. One of these was the primary split and the second was a quality control duplicate. Sample bags were numbered in sequence with a numbered tag inserted by the mine geologist, who then secured the individual bags with cable ties. The sampling assistant and geologists transported the bags out of the mine to a secure staging area where sample shipments were prepared. In all, 342 primary muck samples were collected, totalling 1.7 tonnes of stope material. Sampling was done by the same three teams over the entire program for consistency. The mine geologists performed regular audits of the sampling and sample reduction technique. Custody of the samples was transferred at the mine site to Actlabs, which transported the samples to Actlabs Colombia SAS, Medellin, Colombia, an ISO-9001 accredited facility. channel samples taken from the development backs were analyzed by a 50-gram gold fire assay with atomic absorption finish, or a gravimetric finish for samples initially reporting over 100 g/t gold. Muck samples were analyzed by a 50-gram gold fire assay with a gravimetric finish. All silver values were determined by aqua regia digestion and atomic absorption method.

Besides rigorous chain-of-custody procedures, the company utilized a comprehensive quality control/quality assurance program for the channel and muck samples, including routine insertion of blind certified commercial standards, blanks, field duplicates, check assays and analysis of results using industry-accepted best practices. For the test stope program, all quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program.

For the core drilling in the test stope area, the company applied its standard protocols for sampling and assay. HQ and NQ core are sawn or split with one-half shipped to a sample preparation lab in Medellin operated by ALS in Colombia, whereas BQ core samples are full core. Samples are then shipped for analysis to ALS Peru's ISO 9001-accredited assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and purchased certified reference standards are inserted into the sample stream to monitor laboratory performance. A portion of the samples is periodically check assayed at SGS Colombia SA, an ISO 9001-accredited assay laboratory in Medellin, Colombia.

For information on the Buritica project, please refer to the technical report, prepared in accordance with NI 43-101, entitled "Buritica project NI 43-101 technical report feasibility study, Antioquia, Colombia," and dated March 29, 2016, with an effective date of Feb. 24, 2016, led by independent consultant JDS Energy & Mining Inc. The technical report is available on SEDAR, on the OTCQX website and on the company's website.

About Continental Gold Inc.

Continental Gold is an advanced-stage exploration and development company with an extensive portfolio of 100-per-cent-owned gold projects in Colombia. Formed in April, 2007, the company -- led by an international management team with a successful record of discovering and developing large high-grade gold deposits in Latin America -- is focused on advancing its fully permitted high-grade Buritica gold project to production with first gold pour on track for early 2020.

We seek Safe Harbor.