Mr. Dean Nawata reports

KAPUSKASING GOLD IDENTIFIES 2 GOLD MINERALIZATION SETTINGS AT ROLLO SAMPLING UP TO 8.59 G/T AND 11.41 G/T AS IT READIES FOR DIAMOND DRILLING

Kapuskasing Gold Corp. has provided the results of prospecting and channel sampling at its Rollo property located in Northern Ontario. Sampling at the high-grade Racicot gold showing (previously reported as the Hanson occurrence, see news release June 11, 2015) has identified two different gold-bearing relationships -- a north-bearing quartz vein system sampled in three locations over 30 metres of strike which returned up to 8.59 grams per tonne (g/t) over 0.6 metre and a syenite/porphyry dike system crosscutting the quartz vein system which sampled up to 11.41 g/t along its contact with east-west-trending mafic metavolcanics. A drill program is now being designed to further test these two gold mineralization relationships.

Garry Clark, KAP's exploration manager, comments: "We will be conducting a series of short (approximately 50-metre) diamond drill holes to test both styles of gold mineralization and attempt to add a third dimension to the high-grade sampling encountered so far. Drill permits are anticipated to be in place by late August and drilling contracts are currently being evaluated. The company also continues its discussions with first nations in the area and expects to sign early exploration agreements in the very near term."

The recent program consisted of prospecting, mapping and sampling (grab and channels). A total of 12 channel samples and three grab samples were taken from the Racicot gold showing (see website for map). The channel saw-cuts and grab samples focused on two exposed areas at the Racicot gold showing, and determined that there are two principal gold-bearing relationships.

Gold mineralization associated with:

1. A north-bearing quartz, quartz carbonate vein system that crosscuts the east-west-trending mafic metavolcanics;
2. A syenite/porphyry dike system that trends subparallel to the metavolcanics.

From observations of the limited geological exposure, the dike system seems to crosscut the quartz vein system. The sampling of the quartz vein system in three locations over an approximate 30-metre strike length included 8.82 g/t gold over 0.6 metre. The grab samples were taken at the south contact of the syenite/metavolcanics where channel sampling was not possible. The grab samples highlighted the gold concentration along the contact with assays of 1.0, 1.89 and 11.41 g/t gold.

                                SAMPLING OF RACICOT SHOWING

Sample   Location       Sample     Sample                                        Grams   Length   Average
No.      Racicot          type    direction     Description                       g/t    metres   GGPT/M
 
284701   South Strip   Channel   East-west      Quartz vein                      2.454     0.5
284702   South Strip   Channel   East-west      Quartz vein                      1.106     0.4
284703   South Strip   Channel   East-west      Quartz vein                      0.825     0.3   1.60/1.2
284704   South Strip   Channel   East-west      Quartz vein                      0.27      0.7   1.12/1.9
284677   North Strip   Grab                     Syenite/volcanic/contact        11.414
284678   North Strip   Grab                     Syenite/volcanic/contact         1.01
284679   North Strip   Grab                     Syenite/volcanic/contact         1.885
284705   North Strip   Channel   North-south    Syenite                          0.331     0.9
284706   North Strip   Channel   North-south    Syenite                          0.114     0.7
284707   North Strip   Channel   North-south    Syenite                          0.43      0.9
284708   North Strip   Channel   North-south    Syenite/volcanic/contact         6.752     0.5
284709   North Strip   Channel   North-south    Mafic volcanic                   0.048     0.7
284710   North Strip   Channel   East-west      Quartz vein and mafic volcanic   1.237     0.7
284711   North Strip   Channel   East-west      Quartz vein and mafic volcanic   0.036     0.6
284712   North Strip   Channel   East-west      Quartz vein                      8.594     0.6
 

Continuing prospecting/sampling at other locations on Rollo

Concurrent with the work at the Racicot showing, 53 grab samples were collected at various areas of the property as part of a continuing program to advance known gold showings at Rollo. Prospecting focused on any potential gold-bearing environments. Samples are illustrated on the company website.

                ROLLO PROSPECTING SAMPLING

No. of samples           Range gold 

     27          Below detection limit (DL)
     11          More than DL to 49 ppb   
      5          50 to 99 ppb 
      3          100 to 199 ppb
      4          200 to 499 ppb 
      2          Over 500 ppb (0.639 and 1.309 grams gold per ton)
 
 

Previous sampling of the Coppell Lake area had located an anomalous gold sample associated with a quartz feldspar porphyry within sheared mafic metavolcanics. The examination indicates a shallow blast or pit on the quartz feldspar porphyry. A total of 11 samples were taken with five greater than 100 parts per billion (ppb) gold with one assaying 1.309 g/t gold. All samples were from quartz feldspar porphyry with variable amounts of quartz veinlets and pyrite. The 1.309 g/t gold sample contains three- to five-millimetre quartz veinlets and over 1 per cent pyrite.

The Rollo property is situated along a projected extension of the Destor-Porcupine fault zone, which hosts several multimillion-ounce gold producers in the nearby Timmins camp, and sits between Iamgold's Cote Lake gold deposit and Goldcorp's Borden gold project.

Kapuskasing Gold has six gold properties located along extensions of the Destor-Porcupine or Borden gold project. All of the properties, with the exception of Rollo, are situated within the Kapuskasing structural zones and have potential similarities to Goldcorp's Borden gold project. A detailed map and property descriptions can be viewed on the company's website.

We seek Safe Harbor.