Mr. Bernard Tourillon reports

URAGOLD COMPLETES FIELDWORK PHASE OF PROGRAM TO VALIDATE HISTORICAL ESTIMATE OF RONCEVAUX HIGH PURITY QUARTZ VEIN DEPOSITS

The INRS (Eau Terre Environnement) team has completed the fieldwork phase of Uragold Bay Resources Inc.'s continuing exploration program on the Roncevaux high-purity quartz vein property located in the Matapedia Valley in the Gaspe region of Quebec. Uragold is the largest holder of high-purity quartz properties in Quebec, with over 3,500 hectares under claims.

Industry covets Roncevaux high-purity quartz

The material's unique characteristics make it highly coveted within the industry, as confirmed by the following:

March 2, 2015 -- a major silicon metal producer (first producer) expressed interest in purchasing 20,000 to 50,000 tons of high-purity lump quartz from Roncevaux. The first producer confirmed material from Roncevaux successfully passed rigorous internal testing protocols, deeming the material highly suited for its silicon metal production plant.

Aug. 27, 2015 -- a second major silicon metal producer, for the purpose of securing material for its plant, requested high-purity quartz samples from Roncevaux for evaluation.

Transforming Roncevaux quartz into high-value end product

In addition to the above, Uragold is also evaluating the possibility of becoming a fully integrated vertical producer of high-purity solar-grade silicon metal/value end products:

Sept. 30, 2015 -- Uragold announced a partnership with Pyrogenesis Canada, in which PyroGenesis granted Uragold a worldwide exclusive right to the usage of the PUREVAP quartz vaporization reactor technology. The purpose of the partnership is to transform the company's high-purity quartz into high-purity solar-grade silicon metal/value end products such as:

• Solar-grade silicon metal (UMG Si) 6N to 8N purity Si which presently sells for $12.51 (U.S.) per kilogram ($12,510 (U.S.) per metric tonne);
• Polysilicon or 9N Si which presently sells for $14.10 (U.S.) per kilogram ($14,100 (U.S.) per metric tonne).

Successful testing of this process and transformation of the company's high-purity quartz into high-purity solar-grade silicon metal, is expected to be completed in the first quarter of 2016, and will put Uragold in a position to turn its quartz projects into the highest purity, lowest cost supplier to the solar industry.

Bernard Tourillon, chairman and chief executive officer of Uragold, stated: "The science behind the PUREVAP quartz vaporization reactor is strong: A plasma arc-based process can transform high-purity quartz into metallurgical-grade silicon metal (mg Si). The plasma arc-based process can then be used to purify mg Si into higher value materials such as solar-grade silicon metal. Furthermore, refining mg Si using an electron-beam furnace in a high-vacuum processing environment has proven the concept of the elimination of elements whose vapour pressures are higher than that of silicon. What is unique and ground breaking about the PyroGenesis approach is the combination of these three proven processes into one step."

Fieldwork completed by INRS during the first exploration phase

• Twelve lines of forest were cut and cleared for geological mapping and for geophysics work that included:
  • High-resolution magnetometric survey (total field and gradient) (GSM-19);
  • Frequency-domain electromagnetic survey (Iris Promis-10);
  • Four electrical resistivity tomographic sections (ABEM Terrameter LS);
• New trenches were excavated and old trenches were cleaned to allow channel sampling of the quartz vein and the collection of 200-kilogram samples for:
  • High-precision geochemical evaluation to be done by the INRS;
  • Second producer evaluation and Dorfner Anzaplan test regarding the development of property specific beneficiation processes for the production of ultrahigh-purity quartz sands (99.99 per cent plus silicon dioxide) (April 13, 2015, press release).

Results of the geophysics and geochemical work will allow the planning of a drilling program to confirm SiO2 purity at depth and to validate the historical estimates of 414,700 tons of high-purity quartz contained in the V1 vein structure (grading at 99.20 per cent of SiO2) (GM60610: Barrette, Jean-Paul. 2003. Rapport des travaux d'exploration miniere sur la veine de quartz pur. Projet Silice Roncevaux, Canton Roncevaux, Gaspesie).

Patrick Levasseur, president and chief operating officer of Uragold, stated: "This work is advancing our understanding of the Roncevaux quartz deposit. When combining our technology partnership with PyroGenesis Inc. and our properties portfolio, Uragold is well positioned to become a green tech industry leader in the quartz value-added business."

All information such as resource estimates and grades herein presented is historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and, as such, does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until the company can confirm them.

The work was complete by a team supervised by Dr. Marc Richer-LaFleche, PhD (Geo) from the Institut National de la Recherche Scientifique (INRS, Eau Terre Environnement). Vivian Stuart-Williams, SACNASPS, working under Special Authorization No. 308 of the Quebec Order of Geologist, is an independent qualified person as defined by National Instrument 43-101 that supervised the preparation of the information in this news release.

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