Core Gold Announces Year To Date Gold Production And Operational Results At New Dynasty Goldfield Mining Unit

Core Gold Announces Year To Date Gold Production And Operational Results At New Dynasty Goldfield Mining Unit

Vancouver, B.C., November 23, 2017 – Core Gold Inc. (“Core Gold” or the “Company”) (TSXV: CGLD, OTCQX: CGLDF) is pleased to provide an update on gold production. Core Gold has produced 8,507 ounces of gold year to date October 31, 2017 including 2,215 ounces in October 2017 solely from the new Dynasty Goldfield mining unit. The Dynasty Goldfield is the first new mining unit put into production by Core Gold Inc.

Production Update

Since changing management in September 2016, the Company has focused its mining activities at the Dynasty Goldfield project. Mining activities at Dynasty Goldfield began in January 2017 and since then the Company has successfully ramped up production from Q1 to Q3 2017. Although a much heavier than usual El Niño-related rainfall in Q2 hindered ramp up, the Company successfully stabilized production in Q3 2017, reaching a peak monthly production rate of approximately 1,800 oz of gold per month. In the month of October 2017, production reached a record level of approximately 2,215 oz of gold, the highest monthly level since commencement of production.

Based upon the current Portovelo plant (formerly known as the Zaruma plant) capacity of 750 tons per day, gold production from the Dynasty Goldfield mining unit alone may be able to sustain an annualized rate of approximately 22,000 to 26,000 ounces.*

Keith Piggott, President and Chief Executive Officer of Core Gold, commented: “We are very pleased to announce that we have ramped up gold production and that we have put an entirely new mining unit into production at Dynasty Goldfield. The Dynasty Goldfield mining unit is an asset that we took into production within four months of assuming control of Core Gold and we are very excited by its operational results. We will strive to further improve our production figures in the upcoming fiscal year and to start executing on our high impact exploration plans throughout the Dynasty District shortly”.

All of the Company’s material from Dynasty Goldfield is being trucked to the Company’s wholly owned Portovelo processing plant for processing and sale. Core Gold management wholly refurbished the crushing circuit at the Portovelo processing plant and has plans in place to increase plant capacity back up to its nameplate 2,000 tpd capacity with a USD $4M capital expenditure program. The main thrust of this plan will include refurbishment of the milling circuit where currently only one 1,000 tpd mill is operational and increasing carbon-in-pulp tank capacity.

The Dynasty Goldfield Project

Per the 43-101 Technical Report entitled “Dynasty Goldfield Project – Celica, Loja Province, Ecuador” dated October 22, 2014 ( which can be found on both the Core Gold website www.coregoldinc.com and at www.sedar.com) (the “Technical Report”), with over 1.0 million ounces of gold in the Measured and Indicated mineral resource categories and another 1.1 million ounces of gold in the inferred category, the Dynasty Goldfield Project has the potential to significantly drive the Company’s gold production going forward.

The Dynasty Goldfield Project is fully qualified and permitted under Ecuador’s small-scale mining regime and subject to a fixed 3% royalty with no windfall tax. The small-scale mining regime allows open pit activities with an exploitation volume of up to 1,000 tonnes a day per concession, which would allow up to a total of 3,000 tonnes per day production from the three contiguous concessions that contain the Dynasty Goldfields gold resources.

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