Ms. Joanne Freeze reports

SUN RIVER GOLD COMMITS TO FINANCING THE RE-PROCESSING OF THE HISTORIC TAILINGS AT EL ORO

Candente Gold Corp. has entered into a binding letter agreement with Sun River Gold Corp., a private Nevada corporation, to grant Sun River the right and option to further test and, if proved economic, develop and operate the company's tailings project in El Oro, Mexico, through Candente Gold's Mexican subsidiary, CCM EL Oro Jales SA de CV, according to the agreement CCM EL Oro Jales executed with the Municipality of El Oro, subject to receipt of regulatory approval.

To exercise the option, Sun River shall make staged payments, over 28 months, totalling $500,000 (U.S.) commencing upon signing of the letter agreement ($170,000 (U.S.) being committed), bring the mine tailings properties into commercial production within 36 months of the effective date of the option agreement and grant to the company 5 per cent of net profit (NPI) life-of-mine royalty on production from the properties. Upon making the totality of the staged payments and if commercial production has been achieved, Sun River will indirectly acquire a 100-per-cent interest in CCM El Oro Jales.

Sun River will also be responsible for the obligation to pay an additional 8-per-cent NPI to the Municipality of El Oro. Candente Gold (through its Mexican subsidiary CCM El Oro Jales) has the right to recover all available gold and silver from the Mexico mines tailings deposit and pay to the Municipality of El Oro an 8-per-cent net profit interest royalty, after retaining the first $1.5-million (U.S.) from the El Oro royalty (see news release dated Sept. 14, 2017). Sun River must direct the first $1.5-million (U.S.) from the El Oro royalty to the company. Therefore, upon commercial production, the company will start receiving a 5-per-cent NPI royalty and the first $1.5-million (U.S.) of the El Oro royalty.

If, at the end of the option period, commercial production in the tailings retreatment operation has not been achieved, the parties will engage a mediator to confirm that SRG has in fact made its best efforts to bring the tailings retreatment into production. In the event it is determined that best efforts were made by SRG, then the company will extend the term of the agreement by a further two years, by the end of which time if production has not started, the agreement will terminate, and all rights granted to Sun River will terminate, with no further responsibility to Candente Gold.

About Candente Gold Corp.

Candente Gold's flagship asset is El Oro, a district-scale gold project encompassing a known prolific high-grade gold-dominant silver epithermal vein system in Mexico. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins (reference: Mexico Geological Service bulletin No. 37, mining of the El Oro and Tlapujahua districts, 1920, T. Flores).

Modern understanding of epithermal vein systems indicates that several of the El Oro district's veins hold excellent discovery potential, particularly below and adjacent to the historical workings of the San Rafael vein, which was mined to an average depth of only 200 metres.

In addition to the hardrock potential, Candente Gold is investigating the potential to recover gold and silver from the Mexico mine tailings, which contain an inferred resource* of 1,267,400 tonnes grading 2.94 grams per tonne gold, 75.12 grams per tonne silver containing 119,900 ounces of gold and 3,061,200 ounces of silver.

* Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the accuracy of the estimate. For more information, see the National Instrument 43-101 technical report on the inferred mineral resource estimate of the Mexico mine tailings, prepared by Nadia Caira, PGeo, and Allan Reeves, PGeo, dated Aug. 25, 2014, with an effective date of July 8, 2014, available at SEDAR.

Joanne C. Freeze, PGeo, director and chief executive officer, and Sean I. Waller, PEng, vice-president, are qualified persons as defined by National Instrument 43-101 for the project discussed above. Ms. Freeze and Mr. Waller have reviewed and approved the contents of this release.

We seek Safe Harbor.