CONTINENTAL GOLD LIMITED ANNOUNCES $57,000,000 PRIVATE PLACEMENT FINANCING

Continental Gold Ltd. has entered a financing agreement pursuant to which a syndicate co-led by TD Securities Inc. and Clarus Securities Inc. has offered to purchase, on a bought deal private placement basis, 10 million units of Continental at a price of $5.70 per unit, for total gross proceeds of $57-million. Continental Gold has also granted the underwriters an option to purchase up to an additional two million units, which is exercisable by the underwriters at any time up to two business days prior to closing.