Ms. Janet Lee-Sheriff of Golden Predator reports

GOLDEN PREDATOR OPTIONS SONORA GULCH PROPERTY IN YUKON'S WHITE GOLD DISTRICT; CONTROLS 24.65% OF TAKU GOLD CORP.

Golden Predator Mining Corp. has entered into a property option agreement with Taku Gold Corp. pursuant to which Golden Predator has granted to Taku the option to acquire its 100-per-cent interest in the Sonora Gulch property in Yukon's White Gold district in exchange for shares of Taku and a 1-per-cent net smelter return royalty. The agreement follows the previously announced sale of additional non-core assets located in the White Gold district from Golden Predator to Taku. Golden Predator is focused on the high-grade-gold 3 Aces project in southeastern Yukon. The sale of the White Gold assets provides an opportunity to maximize value from the non-core assets held by Golden Predator.

"This transaction with Taku allows our shareholders to receive a royalty and retain an interest in the attractive prospect of Sonora Gulch and the White Gold district, while we focus our efforts on our 3 Aces project as it has district-scale potential for multiple high-grade orogenic gold deposits," said Janet Lee-Sheriff, chief executive officer of Golden Predator. "We have a unique opportunity at 3 Aces with a 357-square-kilometre land package, featuring at least six mineralized areas within and along favourable stratigraphic and structural zones that extend along trend for more than 35 kilometres. Our current 40,000-metre drill program is focused on the road and bridge accessible Central Core area, host to numerous high-grade gold in quartz veins."

Under the terms of the agreement, Golden Predator has received the initial share issuance of 4.5 million common shares of Taku. In order to exercise the option, Taku will be required to issue additional common shares to Golden Predator as follows:

• On the date that is 12 months from the closing date, 3.5 million common shares of Taku, or that number of Taku common shares equal in value to $1.4-million determined at a price per share equal to the volume-weighted average price of Taku common shares for the 10 consecutive trading days immediately prior to such anniversary date if the VWAP is greater than 40 cents;
• On the date that is 24 months from the closing date, three million common shares of Taku, or that number of Taku common shares equal in value to $1.2-million determined at a price per share equal to the VWAP for the 10 consecutive trading days immediately prior to such anniversary date if the VWAP is greater than 40 cents.

In addition, Golden Predator retains a 1-per-cent NSR royalty on the property.

Sonora Gulch project

The Sonora Gulch project is 259 mineral claims covering approximately 5,414 hectares located in the Yukon's White Gold district. The Sonora Gulch property is located 110 kilometres northwest of the town of Carmacks along the Casino trail which extends to the Casino property located to the northwest. The trail currently provides winter access only. The property is centrally located within the Dawson Range mineral belt which includes many known deposits in central Yukon, including the Coffee and White Gold deposits in the northern portion of the belt, the Casino deposit 45 kilometres to the northwest, and the Klaza and Freegold Mountain area deposits to the south.

Golden Predator, through its predecessor, Northern Tiger Resources, explored the property from 2007 to 2011 and intersected gold in various zones of mineralization which have potential for expansion.

Early warning

Pursuant to the agreement, Golden Predator acquired 4.5 million common shares of Taku on Aug. 1, 2017. Immediately prior to this acquisition, Golden Predator owned 5.25 million common shares of Taku, representing approximately 14.98 per cent of Taku, and 1.75 million warrants of Taku. Following the acquisition, Golden Predator owns an aggregate of 9.75 million common shares of Taku, representing approximately 24.65 per cent of the issued and outstanding common shares of Taku. Golden Predator would own 11.5 million common shares of Taku, representing approximately 27.85 per cent of the issued and outstanding common shares of Taku on a partially diluted basis, assuming the exercise of 1.75 million warrants and that no further common shares of Taku have been issued. The foregoing acquisition has resulted in an approximate 9.67-per-cent change in Golden Predator's ownership on a non-diluted basis.

Pursuant the agreement, Golden Predator was issued the foregoing securities at a deemed transaction price of 20 cents based on the closing price of the Taku shares on the TSX Venture Exchange as at July 31, 2017, representing an aggregate value of $900,000 in consideration for the option. The securities acquired will be held for investment purposes. Golden Predator may, depending on market and other conditions, increase or decrease its beneficial ownership of Taku's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. This information respecting Golden Predator's share acquisition is issued pursuant to Multilateral Instrument 62-104, and a report respecting the above acquisition will be filed on SEDAR.

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