Mr. Dwayne Melrose reports

TRUE GOLD MINING REPORTS Q3 2014 FINANCIAL RESULTS

True Gold Mining Inc. has released its financial results and business highlights for the nine months ended Sept. 30, 2014. To date, all aspects of the Karma gold project are on time and on budget.

Third quarter highlights

Project finance -- Karma fully financed:

• Secured financing of up to $120-million (U.S.) from Franco-Nevada Corp. and Sandstorm Gold Inc. to fully finance Karma construction, as well as certain corporate and Burkina general and administrative costs;
• Commenced drawdown under the financing agreement receiving an initial payment of $37-million (U.S.). Drawdown of the remaining balance will be made over the course of construction.

Permitting -- Karma fully permitted:

• The company received the Kao and Nami exploitation permits.
• All five deposits within the Karma feasibility study (Karma FS) mine plan are fully permitted.
• No other permits are required under the Karma FS mine plan.

Project development -- Karma construction under way:

• Project construction well under way (earthworks on the plant site terraces are 100 per cent complete and civil works more than 20 per cent complete), on time and on budget, with approximately $51.5-million (U.S.) (greater than 39 per cent) of the total $131.5-million (U.S.) Karma initial capex spent and committed to date;
• Long-lead-time capital items ordered, with all mining fleet vehicles and equipment expected on site by January, 2015.

Potential mine expansion -- North Kao:

• Completed a preliminary economic assessment on North Kao;
• Production rate at North Kao of 118,000 ounces gold per year on average over 2.5-year mine life;
• North Kao yields an after-tax internal rate of return of 213 per cent and adds approximately $70-million (U.S.) to Karma after-tax net present value;
• Potential to add $118-million (U.S.) in after-tax free cash flow to the Karma FS economics.

Project optimization -- cost/operating savings:

• Secured long-term cement contract at a price lower than one used in the Karma FS;
• Increases the Karma FS after-tax NPV by $20-million (U.S.) to $198.8-million at $1,250 (U.S.) per ounce Au.

Exploration:

• Completed a 14,712-metre drill program designed to discover additional open-pit, leachable material that could be incorporated into the mine plan for potential mine life extensions or throughput increases;
• Geological mapping of the Kao gold trend (KGT) is currently under way. With a strike length of more than 10 kilometres, the KGT trend hosts the Kao, North Kao and Nami deposits.

Burkina Faso

Since the resignation of former president Blaise Compaore on Oct. 31, Burkina Faso's constitution has been restored, and an interim president and prime minister have been named. A 25-member transitional government will be appointed and remain in place until elections are held next year. The company continues to monitor the situation in Burkina Faso and will provide updates as events warrant.

Financial results

The selected financial data are derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the periods indicated, as prepared in accordance with international financial reporting standards. Details of these results are described in the unaudited condensed interim consolidated financial statements, and management's discussion and analysis for the nine months ended Sept. 30, 2014. These documents can be found on the company's website or on SEDAR.

                               FINANCIAL HIGHLIGHTS
 
                              Three months ended             Nine months ended
                         Sept. 30,      Sept. 30,      Sept. 30,      Sept. 30,
                             2014           2013           2014           2013
Net (loss) for the
period                $(2,888,103)   $(7,844,286)  $(13,923,155)  $(22,754,041)
(Loss) and
comprehensive
(loss) for the
period                $(2,920,874)   $(7,844,286)  $(14,021,468)  $(23,117,293)
Basic and
diluted (loss)
per share                  $(0.01)        $(0.03)        $(0.04)        $(0.11)

For the three- and nine-month periods ended Sept. 30, 2014, the company reported a net loss of $2.9-million and $13.9-million, respectively, compared with net losses of $7.8-million and $22.8-million for the three- and nine-month periods ended Sept. 30, 2013. Operating expenses totalled $2.9-million for the three months ended Sept. 30, 2014, down 62 per cent from $7.8-million a year earlier. The principal reason for the change was a decrease in exploration and evaluation expenditures in the amount of $5.1-million, as the company is now focused on development work on the project. The company has commenced capitalizing costs related to development in the current period. Operating expenses totalled $14.5-million for the nine months ended Sept. 30, 2014, down 36 per cent from $22.7-million a year earlier. The principal reason for the change was a decrease in exploration and evaluation expenditures in the amount of $8.2-million, as the company is now focused on development work on the project.

Total assets as at Sept. 30, 2014, have increased since Dec. 31, 2013, by $62.6-million to $105.3-million, mainly due to (i) an increase in total cash and short-term investments reflecting cash inflows from financing transactions through the nine months ended Sept. 30, 2014; (ii) the capitalization of development costs related to the project, including site earthworks, civil construction, phase 2 of the barrage and other construction activities; and (iii) deposits on the mining fleet, and advances for construction materials and services for the project. This increase was partially offset by cash outflows from operations.

At Sept. 30, 2014, the company entered into a $100-million (U.S.) definitive agreement with Franco-Nevada and Sandstorm to complete financing for the construction of Karma. In exchange for $100-million (U.S.) in financing, True Gold is obligated to purchase and deliver 100,000 ounces of gold over five years, and thereafter 6.5 per cent of equivalent production at the project. In addition, True Gold holds sole option to increase financing by up to $20-million (U.S.) during the first 18 months following the date of the execution of the financing agreement. For the period ended Sept. 30, 2014, the company has drawn down $37-million (U.S.) ($41.3-million), representing the initial drawdown under the financing agreement. During the period ended Sept. 30, 2014, the company recorded a gain on the change in fair value of the liability of $2.1-million. On Dec. 31, 2013, the company had no non-current liabilities.

Peter C. Carter, PEng, chief operating officer and vice-president, engineering, of the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, and has reviewed and verified that the technical information contained in this release is accurate, and approves of the written disclosure of same.

We seek Safe Harbor.