Continental Gold makes a new high-grade gold and silver discovery at 1.200 meters (vertical) near Buritica (Colombia)

Continental Gold Makes New High Grade Gold and Silver Discovery on 1.200 Meters (Vertical) at Buritica (Colombia)

Toronto, Ontario, September 13, 2012 - Continental Gold Limited (TSX: CNL; OTCQX: CGOOF) ("Continental" or the "Company") is pleased to announce the results of initial drilling and channel sampling of the old workings in the La Estera and La Mano areas, two new mineralized vein systems south of the Yaragua and Veta Sur deposits on the Company's 100% owned project

Highlights

La Estera (Figures 1 and 2)

• Underground underground drilling and sampling at the old mining sites in the La Estera area has revealed the discovery of up to three high grade silver and gold sequester systems (Northern, Central and Southern La Estera) located approximately 100 to 300 meters south of the Veta Sur deposit, guided.

• Drilling intersected numerous sections of vein mineralization, with high gold and silver grades at the Southern La Estera vein system and high gold grades at the Northern La Estera vein system, particularly at depth. The most notable intersections include:

o BUSY292 intersected

3,58 m with 6,8 g / t gold and 1.061 g / t silver (28,0 g / t gold equivalent)

1,3 m with 11,1 g / t gold and 121 g / t silver (13,5 g / t gold equivalent)

1,3 m with 10,1 g / t gold and 88 g / t silver (11,9 g / t gold equivalent)

o BUSY282 intersected

4,4 m with 8,3 g / t gold and 41 g / t silver (9,1 g / t gold equivalent)

2,0 m with 10,6 g / t gold and 8 g / t silver (10,8 g / t gold equivalent)

• The high grade gold intersections in BUSY282 are among the deepest intercepts so far in all drill holes in the Buritica project. These sections extend vertically to the extensive near-surface artisanal quarry, suggesting a vertical extension of precious metal mineralization greater than 1.200 meters in the Northern La Estera vein system. The target is still open along strike in all directions and at depth.

• Slit sampling at La Estera's near-surface historic mines revealed high-grade silver-gold veins:

o 6,2 g / t gold and 362 g / t silver (13,4 g / t gold equivalent) with an average thickness of 1 m, including 27,5 g / t gold and 1.581 g / t silver (59,1 g / t gold equivalent) on 0,2 m, along 22 meters

o 6,8 g / t gold and 454 g / t silver (15,9 g / t gold equivalent) with an average thickness of 1,2 m, including 41 g / t gold and 2.747 g / t silver (95,9 g / t gold equivalent) on 0,2 m, along 10 meters

• The high grade silver and gold intersections in BUSY292 have a strike length of up to 120 meters and are up to 400 meters deeper than the historic mines of the Central La Estera vein system. The system is still open along strike and in depth.

• The distribution of geochemical silver and gold soil anomalies as well as artisanal quarrying suggests that the Southern, Central and Northern La Estera vein systems may have considerable lateral extensions.

La Mano (Figure 1)

• The initial drilling at the Southern La Mano area, located approximately 300 to 400 meters south of the Yaragua deposit, also intersected numerous sections of vein mineralization, with both high and moderate grades of gold and silver. Considerable intersections below the extensive geochemical soil anomalies include:

o 1,0 m with 9,1 g / t gold and 1 g / t silver (BUSY263)

o 1,65 m with 6,6 g / t gold and 9 g / t silver (BUSY263)

o 0,42 m with 11,3 g / t gold and 187 g / t silver (BUSY269)

o 0,4 m with 10,1 g / t gold and 153 g / t silver (BUSY276)

• Further surface drilling and sampling on the La Mano and La Estera systems is currently underway and will confirm, inter alia, whether the Northern La Estera and Southern La Mano systems are contiguous and continuous on the 1.000 meters of potential strike length, such as See the satellite and terrain shots.

"Our team continues to unlock new potential at Buritica and we should thank those involved for their efforts," said Ari Sussman, CEO. "We continue to aggressively pursue exploration and development at Buritica, which in this case has led to new discoveries at La Mano and La Estera, already delineating vertical potential on 1.200 meters. Shortly after the announcement of our updated mineral resource estimate, which is still on course to be completed before the end of the month, we intend to present a revised Buritica exploration and development plan that will include offensive drilling on the La Estera and La Mano systems. "

Details

100's proprietary 28.920-acres project, Buritica, encompasses several areas of high grade gold and silver mineralization of the base metal carbonate species ("Phase 1"), with some structurally and chemically unmistakable, high-grade "Phase 2" mineralization , The Yaragua and Veta Sur systems, the two most explored areas, are at the center of the project. The Yaragua system was demarcated from drilling along a strike length of 900 meters to a depth of 1.300 meters; in places samples were taken underground. The Veta Sur system was intersected with holes along a strike length of 570 meters and to a depth of 1.180 meters. Both systems are characterized by several steeply submerged veins and more powerful, strongly intergrown mineralization; they are both open at high levels in depth and along strike. For a summary of Buritica's first mineral resource estimate, please read the section "About Continental Gold Limited." This press release discusses the new precious metal discoveries in the La Estera and La Mano areas south of Veta Sur and Yaragua, respectively.

La Estera

The major drill intercepts in the La Estera system are listed in Table I below and are referenced in Figures 1 and 2.

Table I: Drilling Highlights - La Estera

Drilling at La Estera targeted geochemical soil and rock chip anomalies. All three holes intersected numerous sections of gold and silver mineralization that included high-grade intersections in large vertical and horizontal areas. The associated vein groups are located 100 to 300 meters south of the Veta Sur deposit and are different from it

The drill holes BUSY282, BUSY292 and BUSY305 each intersected several vein groups with moderate to high silver-gold grades at well depths of up to 500 meters (RL 1.900 to 1.400 meters). BUSY065, which was drilled with a more western azimuth, also intersected veins of extremely high silver-gold grades at high altitudes and low depths (Table 1, Figure 2). The artisanal mines above and to the east and west of these drill intercepts are consistent with extensions of the Southern La Estera vein system outside the drilling area.

Slit sampling at the shallow subsurface historic mines at La Estera (further north of the southernmost veins) contained high silver and gold grades, with many samples yielding more than 1.000 g / t silver. The continuous sample sections include:

• 6,2 g / t gold and 362 g / t silver (13,4 g / t gold equivalent) with an average thickness of 1 m, including 27,5 g / t gold and 1.581 g / t silver (59,1 g / t gold equivalent) on 0,2 m, along 22 meters (RL 1.787 m)

• 6,8 g / t gold and 454 g / t silver (15,9 g / t gold equivalent) with an average thickness of 1,2 m, including 41 g / t gold and 2.747 g / t silver (95,9 g / t gold equivalent) on 0,2 m, along 10 meters (RL 1.778 m)

The silver-rich section in BUSY292, the 3,58 meter with 6,8 g / t gold, 1.061 g / t silver (28,0 g / t gold equivalent) and 2,6% zinc (including 0,34 m with 6,3 g / t gold, 2.480 g / t silver (55,9 g / t gold equivalent) and 0,4 m with 6,3 g / t gold and 2.060 g / t silver (47,5 g / t gold equivalent)) at a depth of 276,87 meters (RL 1.651 m), lies further to the west and 130 meters lower than the historic quarrying underground at La Estera. Another 300 meter lower gold-rich section in BUSY292, the 10,72 Meter with 3,8 g / t gold and 56 g / t silver (4,92 g / t gold equivalent), including 1,3 meters with 11,1 g / t gold, 121 g / t silver 13,5 g / t gold equivalent) and 1,3 meters with 10,1 g / t gold, 88 g / t silver (11,9 g / t gold equivalent), at a depth of 276,87 meters (RL 1.651 m), could also be combined with the Central La Estera vein system being related. These drill intercepts and near-surface sampling are consistent with a vertically oriented vein system Central La Estera, which has a lateral strike length greater than 120 meters. The Central La Estera vein system continues to be open along strike and in depth. The geochemical gold and silver soil anomalies and artifacts potentially associated with this vein system cover a strike length of more than 1.000 meters to the east-southeast of the Central La Estera vein system (Figure 1).

More than 200 meters further north of the Central La Estera vein system, BUSY282 intersected several high-grade gold intersections containing both high and low base metal contents. However, these sections differed geochemically from the Veta Sur system, which is located farther north in the 100 meter. These intersections are among the deepest intercepts that have been intersected in drill holes in the Buritica project to date, and include:

• At 1.154,6 m depth (RL 832 m), 4,4 m with 8,3 g / t Gold and 41 g / t Silver (9,1 g / t Gold Equivalent), including 0,95 m with 32,3 g / t Gold and 154 g / t Silver (35,4 g / t gold equivalent)

1,381 m 620 g / t gold and 2,0 g / t silver 10,6 m (8 g / t gold equivalents)

The sections in BUSY282 extend vertically to the extensive near-surface artisanal mines, suggesting a vertical extension of precious metal mineralization of more than 1.200 meters in the Northern La Estera vein system. The target remains open along strike and at depth (Figure 2). Surface sampling and BUSY135 results (Table 1) are consistent with high silver-gold grades for near-surface mineralization in the Northern La Estera vein system found at high altitudes. The distribution of artisanal mines and precious metal soil anomalies in the Northern La Estera vein system (Figure 1) might suggest that this system has a considerable lateral strike extent that has not been tested.

Hand

The major drill intercepts in the La Mano system are listed in Table I below and are referenced in Figure 1.

Table II: Drilling Highlights - La Mano

The first holes in the Southern La Mano area, located 300 to 400 meters south of the Yaragua deposit, targeted extensive precious and base metal soil anomalies. All four holes intersected numerous sections of vein mineralization within thicker coats at lower grades, which had both high and moderate gold-silver grades.

BUSY263 explored a limited area but intersected mineralization at altitudes of 250 meters. The most notable sections in this hole include 1,0 meters with 9,1 g / t gold and 1 g / t silver at a 235 well depth and 1,65 meters with 6,6 g / t gold and 9 g / t silver at 248,3 meters.

Bore BUSY269, which was drilled more along strike, intersected numerous veins in a vertical altitude range of 450 meters, with the best stretch of 0,42 meters featuring 11,3 g / t gold, 187 g / t silver, and 2,8% zinc at a well depth of 190,75 Meters.

Drilled BUSY276 intersected vein mineralization, including a section of 0,4 meters with 10,1 g / t gold and 153 g / t silver at a depth of 29,8 of wells before being terminated shortly before their target depth.

BUSY243 was drilled further north, intersecting silver-gold mineralization to heights of 1.150 meters, south of the southernmost vein groups at Yaragua.

The distribution of precious-metal soil anomalies and artisanal mines in the Southern La Mano area (Figure 1) suggests that the mineralization at La Mano is more lateral in extent than previously explored by drilling, and it may be found to interfere with mineralization Northern La Estera is related.

Continuing drilling and surface sampling are exploring the continuity of the La Mano and La Estera systems, in particular to clarify whether the Northern La Estera and Southern La Mano systems are contiguous and continuous on the 1.000 meters of potential lateral extent.

Technical information

Vic Wall, PhD, Special Adviser to the Company and a "Qualified Person" as defined by NI 43-101, has prepared, supervised, or approved the technical information in this news release. Dr. Wall is a geologist with 35 years experience in the mineral mining, consulting, exploration and research industries. After a career in Australian and North American academies, he held senior positions in a variety of large and small multinational mineral companies. Dr. Wall, a Fellow of the Australian Institute of Geoscientists, is the principal of Vic Wall & Associates - a Brisbane consultancy providing geoscientific services to mineral companies and government agencies worldwide.

The company applies an industry-standard QA / QC program. The HQ and NQ diamond core will be sawn in half, with one half sent to a sample preparation laboratory in Medellín operated by SGS Colombia. 100% of BQ diameter drill samples are sent. The samples are then sent for analysis to a SGS-certified laboratory in Lima, Peru. The remainder of the core is stored in a secure storage facility for future testing. To monitor the performance of the laboratory, blank, double and certified standard samples are added to the sample set, and some of the samples are subject to regular check-ups by ACME Laboratories of Vancouver, Canada, and / or Inspectorate Labs of Reno, Nevada ,

The Company will not receive the assay results from drilling in the order in which they were drilled; however, all findings will be published. A full list of previous Yaragua and Veta Sur system research results is available on the Company's website at www.continentalgold.com.

The gold equivalent content is calculated by dividing the silver content by 50 and then adding the result to the gold content. Here, a metallurgical recovery rate of 100% is assumed.

For more technical information about the Buriticá Project, please refer to the Company's Technical Report ("Technical Report) entitled" Mineral Resource Estimate of the Buriticá Gold Project, Colombia "by the 24. October 2011 (revised on 23 November 2011), written by Andrew J. Vigar, BAppSc. Geo., FAusIMM, MSEG, and Martin Recklies, BAppSC. Geo., MAIG, of Mining Associates Pty. Limited, available on SEDAR at www.sedar.com, on the OTCQX website at www.otcmarkets.com, and on the Company's website at www.continentalgold.com.

About Continental Gold

Continental Gold Limited (TSX: CNL) is an advanced stage exploration and development company with a comprehensive portfolio of 100% owned gold projects in Colombia. Headed by a team with 40's experience in exploration and mining in Colombia, the company is focused on advancing its high-grade Buritica gold project to production. An initial NI 43-101 resource estimate for the Buritica project covers two vein systems and includes combined measured and indicated resources of 1.100.000 tonnes of ore, representing 17,8 g / t 630.000 ounces of gold gold, with 42 g / t silver content 1.500.000 ounces of silver and at a zinc content of 0,8% 18.700.000 equals to pounds of zinc. The Inferred Mineral Resource comprises 6.900.000 tonnes of ore containing 11,4 ounces of gold at 2.500.000 g / t gold, 43 ounces silver at 9.500.000 g / t silver, and 0,6% 88.000.000 pound zinc at XnumX. For more technical details on the Buriticá project, please refer to the technical report.

In August 2012, Continental reached an important milestone with the receipt of the official approval of the modification of the existing Environmental Impact Assessment. This change will allow the company to build a six-kilometer-long, serpentine road and to open underground development by building a kilometer-long access tunnel. With the goal of becoming the first modern gold producer in Colombia, Continental will begin construction of the access tunnel in the second half of 2012, initially to gain access to underground drilling and later use it for commercial production. The Buritica project is also underway with a Phase III drill program to further delineate the resource and drill new target zones that have been demarcated within that concession.

Further details on the Buritica Project and Continental's other gold exploration properties are available at www.continentalgold.com.

For further information please contact:

Nisha Hasan
Director, Investor Relations
Continental Gold Limited
+1.416.583.5611
[email protected]
www.continentalgold.com

Forward-looking statements

This press release contains or refers to forward-looking information within the meaning of Canadian securities laws. These include statements on the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, and the date of commencement of operations. They are based on current expectations, which are subject to a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those anticipated. Readers should therefore not consider forward-looking statements to be reliable. Factors that could cause actual results or events to differ materially from current expectations include, without limitation, the inability to convert estimated mineral resources into reserves, the material variance of the investment and operating costs of estimates, the preliminary nature of metallurgical results Investigations, delays in the receipt or absence of necessary governmental, environmental or other project approvals, political risks, uncertainties related to the availability and cost of financing needed in the future, changes in the capital market, inflation, changes in exchange rates, Fluctuations in commodity prices, delays in project development and other risks inherent in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those anticipated. Readers should therefore not consider forward-looking statements to be reliable. These forward-looking statements were made as of the date of this press release. The Company expressly disclaims any obligation to update or revise any statements to reflect new events or circumstances, except as required by law.

Differences in the reporting of resource estimates

This news release has been prepared in accordance with Canadian standards, some of which differ from US standards. In particular, but without limiting the generality of the above statement, the terms "Inferred Mineral Resources", "Indicated Mineral Resources", "Measured Mineral Resources" and "Mineral Reserves" used or referred to in this press release, to Canadian mining terms, in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Standards on Mineral Resources and Mineral Reserves (the "CIM Standards") of the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") have been defined. The CIM standards differ significantly from the standards in the United States. While the terms "Mineral Resource," "Measured Mineral Resources," "Indicated Mineral Resources," and "Inferred Mineral Resources" are recognized and required by Canadian regulators, they are not well-known within US standards. Derived mineral resources are highly uncertain from an economic and legal point of view regarding their existence and their eligibility. It can not be assumed that derived mineral resources in their entirety or in parts will ever be upgraded to a higher category. Under Canadian securities laws, inferred mineral resource estimates should not be used as a basis for feasibility studies or other economic research. Readers are cautioned not to assume that measured or indicated mineral resources are ever converted into reserves. Readers are also cautioned not to assume that inferred mineral resources exist in their entirety or in part or are economically or legally degradable. The indication of the ounces contained in a resource is permitted under Canadian regulations, but US companies are only permitted to declare mineralization that does not constitute "reserves" under United States standards, without reference to tonnage and ore Report units of measure. Consequently, information regarding resources contained or referenced in this news release, which includes descriptions of our mineral deposits, may not be comparable to similar information published by US companies.

Figure 1 - Top view of drill top points, near-surface sampling and artisanal mining sites on LIDAR topographical basis