Mr. Jeffrey Wilson reports

PRECIPITATE COMPLETES DUE DILIGENCE AND ELECTS TO PROCEED WITH ACQUISITION OF CONCESSIONS IN THE DOMINICAN REPUBLIC

Precipitate Gold Corp., with respect to the agreement announced July 2, 2014, has completed its due diligence review of the Richard and David concession applications, and notified Gexplo SRL and Santo Mining Corp. of its decision to proceed with the agreement to acquire a 100-per-cent interest in both the Richard and David concession applications in the Dominican Republic.

Upon execution of the agreement, Precipitate was granted a 30-day due diligence period, during which it reviewed all available technical and legal data related to the concessions. Having completed a satisfactory review of the available information, Precipitate has notified the vendors of its election to proceed with the terms of the agreement.

In accordance with the agreement, Precipitate has delivered to the vendors a share purchase warrant allowing the vendors to purchase up to 100,000 common shares of the company at an exercise price of 30 cents per share for up to three months (expiring Oct. 15, 2014), and granted the vendor a 2-per-cent net smelter royalty (NSR) on each of the concessions (purchasable by Precipitate for the price of $500,000 (U.S.) per 0.5 per cent for a total purchase price of $2-million (U.S.)). Full details of the agreement can be found in the company's news release dated July 2, 2014.