Mr. Steven Craig reports

RECENTLY COMPLETED CROSS SECTIONS OF HISTORIC DRILLING SHOW SIGNIFICANT TARGET EXPANSION POTENTIAL AT PROVENANCE'S ELDORADO GOLD PROJECT AS UPCOMING DRILLING APPROACHES

Provenance Gold Corp., as part of its preparation for a planned Eldorado spring drilling program, has plotted cross-sections and long-sections of the historic drill holes. Analysis of the cross-sections and further supporting data has produced encouraging results.

Upon review of the cross-sections, Provenance's project manager, Steven Craig, stated: "Not only is the system open outward in all directions, but it's also wide open between the holes, and especially downward. Most of the holes bottomed short of 100 metres, but the holes that went deeper continued to hit thick gold zones, even to depths below 250 metres. The deeper holes often had their best mineralization below 100 metres."

The Eldorado gold property, in mining-friendly Malheur county, in eastern Oregon, was the site of extensive historic placer mining. Although the project is in a desert environment, it has very few outcrops. The placer mining locally exposed the underlying gold-bearing bedrock. Later, historic drilling focused on the areas where placer mining had exposed the gold-mineralized bedrock, leaving much of the mineralized area still undrilled.

The gold mineralization is associated with a diorite intrusive that hosts most of the gold. The deposit is a porphyry-style gold system that additionally contains breccia zones that carry local high-grade gold values. Historic testing suggested that the property has excellent recovery characteristics because the gold came in after the sulphides, so consequently, even the unoxidized rock appears to have good recovery characteristics, even using only gravity and floatation.

In 1990, the first mineral inventory was calculated by Pincock, Alan and Holt (PAH), a reputable engineering firm that was used industry-wide for this type of work. PAH modelled 158 of the historic drill holes which identified approximately 52,896,000 tons that graded 0.578 gram per tonne gold (0.0169 ounce/t gold) at a cut-off of 0.274 gram per tonne (0.008 oz/t) in the completely open-ended gold system. The company is aware of a second historical resource estimate that was calculated by Ican Minerals and a projected resource estimate by Ican from that included additional drilling completed between 1989 and 1997 where the tonnage and grade were substantially higher. Other than these, the company is not aware of any more recent estimates prepared for the property. The company is not treating any of these estimates as current mineral resources and a qualified person has not done sufficient work to classify these estimates as current mineral resources. The estimates were prepared prior to the enactment of National Instrument 43-101 and should not be relied upon for investment decisions. The purpose of presenting this information is to show that the Eldorado project has potential to hold a large mineral inventory. Provenance plans to update these historical estimates into a current resource model. Near-term work includes confirmation drilling by twinning a number of the historic holes, certifying and comparing assays between the old and new holes, validating historic hole locations, and confirming historic metallurgical test results.

Provenance will focus its coming drilling on beginning to verify the historic drilling, while simultaneously beginning to fill in the historic gaps and extending the mineralization downward and outward.

"We are confident the upcoming drilling will put the project and our company on the map. This is an exciting time for us," said Provenance chairman Rauno Perttu.

Qualified person

Mr. Craig, CPG, project manager for the company and a qualified person as defined under National Instrument 43-101, has reviewed and approved the technical contents of this news release.

About Provenance Gold Corp.

Provenance Gold is a precious metals exploration company with a focus on gold and silver mineralization within North America. The company currently holds interests in three properties, two in Nevada and one in eastern Oregon, United States.

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