Ms. Kim Evans reports

GOLDEN REIGN INCREASES MINERAL RESOURCES AT SAN ALBINO GOLD DEPOSIT - INDICATED RESOURCES INCREASED BY 67%, INFERRED RESOURCES RISE 8.5%

Golden Reign Resources Ltd. has provided an updated mineral resource estimate for the San Albino gold deposit on its 100-per-cent-owned San Albino-Murra property located in Nueva Segovia, Nicaragua. The resource estimate was prepared by P&E Mining Consultants Inc. of Brampton, Ont., and updates the previous resource estimate prepared by P&E in November, 2012.

Resource estimate highlights:

• A 67-per-cent increase in indicated resources from an initial 95,000 gold-equivalent ounces to 158,800 gold-equivalent ounces at 5.97 grams per tonne contained in 827,000 tonnes;
• An 8.5-per-cent increase in inferred resources from 805,000 gold-equivalent ounces to 873,300 gold-equivalent ounces at 7.97 grams per tonne contained in 3.41 million tonnes;
• New El Jobo mineralized zone identified and included in open-pittable resources;
• The San Albino gold deposit is near surface (within 300 metres vertical depth) and remains open along strike in both directions and at depth.

                                    TOTAL RESOURCES

Zone   Classification      Tonnes     Au         Au     Ag          Ag    AuEq      AuEq 
                                    (g/t)   (ounces)  (g/t)    (ounces)   (g/t)  (ounces)

Oxide       Indicated     764,000   5.64    138,600    9.8     241,000    5.75   141,300
             Inferred     857,000   4.72    130,100    7.5     208,000    4.81   132,500
Fresh       Indicated      63,000   8.50     17,200   11.7      24,000    8.67    17,500
             Inferred   2,553,000   8.83    724,900   12.9   1,061,000    9.02   740,800
Total       Indicated     827,000   5.86    155,800   10.0     265,000    5.97   158,800
             Inferred   3,410,000   7.80    855,000   11.6   1,269,000    7.97   873,300

Mineral resource estimate notes and parameters:
1. Mineral resources are not mineral reserves and do not have demonstrated 
   economic viability. There is no certainty that all or any part of the 
   mineral resources estimated will be converted into mineral reserves.
2. The estimate of mineral resources may be materially affected by environmental, 
   permitting, legal, title, taxation, socio-political, marketing, or other 
   relevant issues, although the company is not aware of any such issues.
3. The quantity and grade of reported inferred resources in this estimation are 
   uncertain in nature, and there has been insufficient exploration to define 
   these inferred resources as an indicated or measured mineral resource, and 
   it is uncertain if further exploration will result in upgrading them to an 
   indicated or measured mineral resource category.
4. Gold equivalent was calculated on the basis of one gram gold equalling 
   to 64 grams silver.

The 2014 mineral resource estimate update categorizes resources as either in pit (open-pittable) or out of pit (underground).

                                          IN-PIT RESOURCES

Zone   Classification      Cut-off     Tonnes      Au        Au     Ag         Ag    AuEq      AuEq 
                        grade (g/t)              (g/t)  (ounces)  (g/t)   (ounces)   (g/t)  (ounces)

Oxide       Indicated         0.23    750,000    5.70   137,500    9.9    239,000    5.81   140,200
             Inferred         0.23    750,000    5.01   120,900    7.7    185,000    5.10   123,000
Fresh       Indicated         0.50     44,000   10.51    15,000   14.6     21,000   10.73    15,300
             Inferred         0.50    286,000    8.07    74,300    8.6     79,000    8.20    75,500
Total       Indicated                 794,000    5.97   152,500   10.2    260,000    6.09   155,500
             Inferred               1,036,000    5.86   195,200    7.9    264,000    5.96   198,500

The company's 2013 exploration program at the San Albino gold deposit was designed to derisk the project by upgrading the quality of the in-pit resource through additional infill and step-out drilling, as well as trenching. In all, a further 6,160.5 metres were cored in 73 drill holes, including 236.9 metres across 12 drill holes utilized for metallurgical test work. Trenching comprised 24 trenches, 28 exploration pits and four road cuts across 3,945 metres.

The program was highly successful, increasing indicated resources by 113 per cent from 70,000 gold-equivalent ounces to 155,500 gold-equivalent ounces grading 6.09 grams per tonne.

Drilling and trenching were focused on the extensions of near-surface, shallow-dipping, high-grade open-pittable mineralized zones situated within 100 metres vertical depth. This resulted in the discovery of a new zone, El Jobo, which lies at surface, structurally above the San Albino zone. There is virtually no waste stripping anticipated for mining of the El Jobo zone.

Four mineralized zones El Jobo, San Albino, Naranjo and Arras comprise the open-pittable resources, which are characterized as either oxide or fresh rock. The in-pit oxide zone has a 0.23-gram-per-tonne-gold-equivalent cut-off grade. The mining costs for this zone are anticipated to be significantly lower, as drilling and blasting will not be required and the strip ratio is expected to be low. Notably, the lower cut-off grade for the oxide zone did not significantly increase the total gold content due to the well constrained block model (see the resource estimate sensitivities tables on the company's website). The fresh rock zone has a gold-equivalent cut-off grade of 0.5 gram per tonne.

The open-pit resource model was designed using a Whittle pit optimization model to ensure application of a reasonable stripping ratio and economic assumptions. Parameters utilized in the mineral resource estimate calculation update and pit optimizations are shown in the attached table.

Au recovery -- oxide zone                  91%
Au recovery -- fresh rock zone             95%
Ag recovery -- oxide zone                  59%
Ag recovery -- fresh rock zone             85%
Density -- oxide zone                2.51 t/m3
Density -- fresh rock zone           2.74 t/m3
Pit slopes                          45 degrees
Pit depth, maximum                  100 metres

                                       OUT-OF-PIT RESOURCES

Zone   Classification      Cut-off     Tonnes      Au        Au     Ag         Ag    AuEq      AuEq 
                        grade (g/t)              (g/t)  (ounces)  (g/t)   (ounces)   (g/t)  (ounces)

Oxide        Indicated         1.5     14,000    2.43     1,100    5.1      2,000    2.49     1,100
              Inferred         1.5    107,000    2.69     9,300    6.5     22,000    2.77     9,500
Fresh        Indicated         1.5     19,000    3.72     2,200    5.0      3,000    3.79     2,300
              Inferred         1.5  2,267,000    8.93   650,600   13.5    982,000    9.13   665,200
Total        Indicated                 33,000    3.17     3,300    5.0      5,000    3.24     3,400
              Inferred              2,374,000    8.65   659,900   13.2  1,004,000    8.84   674,700

The San Albino resource model now consists of four shallow-dipping, high-grade, narrow vein systems over a strike length of 670 metres, a downdip extension of 905 metres, with a minimum true width of one metre and average true width of 2.6 metres. Gold-grade capping varied from no capping to 85 grams per tonne, depending on the vein system. All silver assays were capped at 90 grams per tonne. Inverse-distance-cubed grade interpolation was on two-metre-by-two-metre-by-six-metre blocks utilizing Gemcom modelling software. Two hundred twenty-three drill holes and 92 trenches at the San Albino gold deposit were utilized in the resource estimate calculation.

The updated mineral resource estimate for the San Albino gold deposit was prepared by P&E, in accordance with the Canadian securities administrators' National Instrument 43-101, and resources have been estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards on mineral resources and reserves, definitions and guidelines, prepared by the CIM standing committee on reserve definitions and adopted by the CIM council.

The mineral resource estimates in this news release were prepared by Eugene Puritch, PEng, and Yungang Wu, MSc, PGeo, of P&E, each an independent qualified person, as defined by NI 43-101. Mr. Puritch has reviewed and approved the contents of this news release.

Located at the southern end of a 20-kilometre-long mineralized trend outlined and defined by Golden Reign as the Corona de Oro gold belt, the San Albino gold deposit is the first of the five areas slated for development by the company. The company recently completed a $15-million (U.S.) gold streaming arrangement with Marlin Gold Mining Ltd., which will finance the construction and development of the San Albino gold deposit (see news release dated July 11, 2014).

Quality assurance

The company's rigorous quality assurance/quality control program utilizes best industry practices, involving insertion of appropriate standards, blanks and field duplicates. All drill holes were sampled on at most a one-metre interval within the mineralized zones, with drill core split on site and one-half then being transported to Inspectorate America Corp., a certified U.S.-based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), preparation facility in Managua. The samples were then transferred to Inspectorate's analytical laboratory in Richmond, B.C., Canada. Duplicate samples were also sent to Acme Analytical Laboratories Ltd. in Vancouver, B.C., Canada, for comparative analysis. Gold and silver analyses were carried out by fire assay. In addition, for samples assaying greater than one gram per tonne gold, check assays were also carried out by the metallic screen method to verify high-grade sample assays obtained by fire assay and to minimize gold nugget effect.

Golden Reign's qualified person

John M. Kowalchuk, PGeo, a geologist and the company's qualified person (as defined under NI 43-101), has read and approved the technical information contained in this news release on behalf of the company.

We seek Safe Harbor.