Mr. Peter Bernier reports

PROSPER GOLD CORP. DRILLING UPDATE

Prosper Gold Corp. has completed phase 1 of the drill program at the Ashley gold project in Northern Ontario. Phase 1 consisted of 23 drill holes for a total of 8,715 metres. Phase 2 of the drill program is targeting new syenite and structurally controlled gold targets immediately northwest and northeast of the Young Davidson (Alamos Gold) mine property, and will commence in March, 2017.

• Drilling to date has targeted the Ashley-Garvey vein system near the historic Ashley gold mine.
• Drilling tested the hangingwall, footwall, down-dip, and northward and southward on-strike continuity of the Ashley and Garvey veins, and newly discovered gold-in-soil anomalies.
• A substantial quartz feldspar porphyry-quartz syenite discovered west of the vein systems requires further drill testing.

                               SELECTED HIGHLIGHTS

         From     To         Int.     Au          From     To         Int.     Au
DDH        (m)    (m)          (m)  (g/t) DDH       (m)    (m)          (m)  (g/t)

A003       54     55            1   5.51 A011      252    255            3   2.29
A004   183.75    189         5.25   1.81 A012      128    129            1   3.59
incl.   186.1 186.77         0.67  11.25 A013       44     45            1   4.62
A005       44     46            2   2.73 A014       32     35            3    1.4
incl.      45     46            1   3.95 incl.      34     35            1   2.04
A005      147    148            1   7.34 A014       53     54            1    2.5
A006      183    185            2   2.71 A014      264    265            1   1.85
incl.     184    185            1   4.94 A021      267    273            6   0.95
A009      113    114            1   9.46 incl.     267    269            2   1.08
A009    316.5  317.5            1   2.35 A025       27     28            1   24.4
A009      343    344            1   10.8 A026      225    226            1   3.79
A011       72     73            1   3.44 A029      230    238            8   1.61
A011      128    129            1   43.3 incl.     235    237            2   5.39
A011    244.5  246.5            2   2.24                                         

Note: Lengths reported are drill core lengths true lengths are unknown.
  
Hole locations and striplogs are available on Prosper's website.
  

"The Prosper Gold team is working hard toward our 20,000-metre drill program. We have completed a first pass at evaluating the vein targets and are eager to get back to work drill testing the bulk-tonnage targets," commented Peter Bernier, president and chief executive officer.

Quality assurance/quality control

Prosper Gold has applied a rigorous quality assurance/quality control program at the Ashley project using industry best practice. The core is logged, recovery and rock quality designation calculated, fractures counted, and magnetic susceptibility measured. Orientation of fractures, veins and contacts is measured (oriented core is used). Drill core is sawn in half lengthwise at the core logging facility in Matachewan and sampled in one- and two-metre intervals. Half of the core is placed in plastic bags and sealed, and the remaining half core is retained in core boxes stored at the project. The program includes chain of custody of samples from drill to laboratory.

A standard sample, a blank sample, or a duplicate sample is inserted into the sample stream every 10th sample. Three certified ore assay laboratory standards used in the process, were supplied by CDN Resource Laboratories Ltd., an independent laboratory located in Langley, B.C. In total, 397 quality control samples (about 11 per cent of 3,740 samples) were analyzed.

As well, 292 assay pulps retained at the Timmins ALS preparation lab are being reanalyzed by gold fire assay at Actlabs in Timmins as a double-check on initial gold results. A further 184 samples were analyzed by metallic screen analysis at Actlabs in Ancaster, Ont. A representative 1,000-gram split is sieved at 100 mesh (149 microns) with assays of the entire plus-100-mesh and on two splits of the minus-100-mesh fraction. The final assay is calculated based on the weight of each fraction.

Samples, including those for quality control, are shipped to ALS Minerals' preparation lab in Timmins, Ont. Splits from the samples were shipped to and analyzed at ALS's ISO 9001:2008-certified North Vancouver laboratory for gold by fire assay and ICP-AES finish, and for 48 elements including copper, molybdenum and silver by ICP-MS using four-acid digestion. Similarly Actlabs samples are shipped direct from the secure storage in Matachewan to the lab.

The company has granted an aggregate of 521,000 incentive options to purchase common shares of Prosper Gold to directors, officers and employees of the company. The options are exercisable at a price of 20 cents per common share until five years from the date of grant.

The options are granted pursuant to the company's stock option plan. The grant of the options is subject to the final approval of the TSX Venture Exchange.

Qualified person

The technical information in this news release has been reviewed by Dirk Tempelman-Kluit, PhD, PGeo, a qualified person under National Instrument 43-101.

We seek Safe Harbor.