Mr. Nick Mather reports

CASCABEL EXPLORATION UPDATE

Solgold PLC has provided an update from the company's Cascabel project in Northern Ecuador, where drilling is currently focused on targeting high-grade extensions to the Alpala resource.

Highlights:

• 12 rigs now on site and operational at Alpala;
• An additional 13,384 metres of drilling completed since release of Alpala maiden mineral resource estimate cut-off (published on Jan. 3, 2018, refer to attached table). Over 120,000 m of drilling scheduled for the next 12 months;
• Alpala drill hole targeting high-grade extensions to the current Alpala resource;
• Hole 33 high-grade mineralization extension: 824 m at 0.80 per cent copper equivalent, including 576 m at 0.93 per cent CuEq;
• Drilling cost reduced to $530/m from $1,100/m;
• Rig to resource integrated data capture protocol to expedite revised mineral resource calculations;
• Aguinaga modelling nearing completion and drilling expected to commence in the March quarter;
• Study manager selection and recruitment under way for preliminary economic assessment.

Commenting on the progress, Solgold chief executive officer and managing director Nick Mather said: "The maiden resource is just the tip of the iceberg at Alpala. We are looking to substantially increase it, and focusing on high-grade expansion. The bornite-rich areas at Alpala South are yet to be comprehensively tested, and I'm confident we will find a deep, rich root at Alpala.

"We plan to drill at least 120,000 m in 2018, so it is pleasing to see that the new track-mounted rigs are already performing beyond expectations, delivering up to 60 metres/day each. Furthermore, the average cost for drilling has declined markedly from $1,100/metre to $530/metre."

Further information

Solgold currently has 12 rigs that are progressing holes: 29-D4, 32-D3, 33-D1, 34-D1, 36, 37, 38-D1, 39, 40, 41, 42 and 43.

Hole 33 assay results from ALS in Lima, Peru, confirm significant mineralization along the up-dip, western side of the deposit, returning:

• 824 m at 0.80 per cent CuEq (0.54 per cent Cu, 0.42 gram per tonne gold), including:
  • 576 m at 0.93 per cent CuEq (0.61 per cent Cu, 0.51 g/t Au);
  • 206 m at 1.32 per cent CuEq (0.75 per cent Cu, 0.92 g/t Au).

Hole 33-D1 has drilled across the orebody from northeast to southwest, intersecting intensely mineralized diorite porphyry from 1,042 m to 1,161 m, and is continuing onward to test for extensions to the west of a late mineralization D20 diorite dike. Assay results are pending.

Hole 36 has intersected an intensely mineralized diorite intrusion and is expected to extend the mineral resource down dip and to the northeast.

Hole 41, drilled from the northeast side of the deposit and collared near the Parambas anomaly, has intersected very shallow epithermal (low temperature) mineralized vein sets between 60 m and 100 m depth. Additional porphyry style mineralization is interpreted at depth, on the northeast flank of the Alpala deposit.

Nine other holes (29-D4, 32-D3, 34-D1, 37, 38-D1, 39, 40, 41, 42 and 43) have yet to reach target depth.

Significant mineral resource extensions at Alpala are being targeted along the open margins of the deposit and at depth.

                            ALPALA MINERAL RESOURCE STATEMENT AS OF JAN. 3, 2018

                         Resource       Tonnage                            Grade                        Contained metal

                         category           (Mt)       Cu        Au                         Cu        Au           CuEq
                                                       (%)     (g/t)     CuEq (%)          (Mt)     (Moz)           (Mt)

+1.1% CuEq              Indicated            70       1.1       1.3           1.8          0.7       2.8            1.2
                         Inferred            50       1.1       1.3           1.8          0.5       1.9            0.8
0.9 - 1.1% CuEq         Indicated            50       0.7       0.5           1.0          0.3       0.9            0.5
                         Inferred            50       0.7       0.5           1.0          0.4       0.9            0.5
0.3 - 0.9% CuEq         Indicated           310       0.4       0.2           0.5          1.2       2.3            1.6
                         Inferred           550       0.4       0.2           0.5          2.0       3.5            2.6
Total +0.3% CuEq        Indicated           430       0.5       0.4           0.8          2.3       6.0            3.4
                         Inferred           650       0.4       0.3           0.6          2.9       6.3            4.0

Aguinaga

The Aguinaga target is anticipated to be drilled using a man portable rig during the March quarter. A series of three holes will test key elements of geochemical and geophysical anomalies:

• Northeasterly and northwesterly oriented zones of strong molybdenum anomalism;
• Coincident high copper/zinc, molybdenum, Cu and gold in soil geochemical highs;
• A deep root in the magnetic model;
• Coincident high chargeability and magnetic features, interpreted to be a magnetic, chalcopyrite-rich potassic core to a porphyry system;
• Vertically extensive cylindrical features in the chargeability and resistivity surveys.

Cost control at Cascabel

Cost control at Cascabel is proceeding according to plan. The 20,000 m drilled since November, 2017, has been completed at a cost of $530/m. This is the result of scale efficiencies, use of directional drilling technology (Devico) and increased rig supervision. To date, the use of daughter holes off a single parent hole has saved over 12,000 m of drilling.

Rig to resource data protocol

Solgold is implementing a rig to resource data transfer protocol which provides for immediate electronic recording of all drilling, surveying, logging and geochemical data as well as geophysical and geological models and interpretations into files accessible by Solgold explorationists and Solgold's independent consultants. This is being designed to enable regular resource statement upgrades, and the provision of interpretable data in real time.

Qualified person

Information in this report relating to the exploration results is based on data reviewed by Jason Ward (BSc, honours Geol), the chief geologist of the company. Mr. Ward is a member of the Australasian Institute of Mining and Metallurgy, holds the designation MAusIMM (CP), and has in excess of 20 years experience in mineral exploration, and is a qualified person for the purposes of the relevant London Stock Exchange and Toronto Stock Exchange rules. Mr. Ward consents to the inclusion of the information in the form and context in which it appears.

Solgold is a dual LSE- and TSX-listed (SOLG on both exchanges) copper-gold exploration and future development company, based in Brisbane, Australia, with assets in Ecuador, Solomon Islands and Australia. Solgold's primary objective is to discover and define world-class copper-gold deposits. The board and management team have substantial vested interests in the success of the company as shareholders as well as strong records in the areas of exploration, mine appraisal and development, investment, finance, and law. Solgold's experience is augmented by state-of-the-art geophysical and modelling techniques, and the guidance of porphyry copper and gold expert Dr. Steve Garwin.

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