SolGold Regulatory News (SOLG)

12 April 2016

SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update

Mineralisation at Surface Discovered 400m South of Alpala Creek

The Board of SolGold (AIM code: SOLG) is pleased to provide the following exploration update for the Company's Cascabel copper-gold porphyry project in Ecuador.

HIGHLIGHTS:

Ø Porphyry style mineralisation discovered on surface some 400m south of Alpala Creek, pointing to a new target area, Alpala South.

Ø 1:500 scale geological mapping progresses and upgrades the Hematite Hill Prospect.

Ø Detailed geological mapping continues as rock-saw channel sampling begins over both Hematite Hill and Alpala South areas.

FURTHER INFORMATION:

Cascabel Project

The Cascabel Project is located within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global resource assets. Cascabel boasts numerous large porphyry copper-gold targets within a cluster of prospective porphyries in a relatively unexplored section of the northern Andean copper belt that produces oxidised, gold rich porphyry deposits (refer Figure 1 Regional Setting).

SolGold, as an active explorer in Ecuador, enjoys the support of the Ecuadorean Government in developing the nation's exploration and mining industry. Cascabel presents numerous logistic advantages which augment its likely large scale and known high copper-gold grades. The project is located on a sealed multi-lane national highway at a low elevation with abundant water, labour, hydroelectric power, and a short 80km distance to a Pacific deep water port site at San Lorenzo and 150kms to an established deep water port at Esmeraldas (refer Figure 2 Location Map).

Field Work Update

Ongoing expansion of 1:500 scale geological mapping and rock-saw channel sampling across the growing Cascabel porphyry field has led to another discovery of porphyry copper-gold mineralization in outcrop, along the northern and southern slopes of the newly discovered Alpala South prospect, which lies 400m due south of Hole 5 at Alpala Central (Figure 3). The extent of outcropping mineralisation at Alpala South and Hematite Hill has not yet been defined, as mapping continues over the ridges that separate Alpala Central and Alpala Southeast (Figure 4).

The prospective centres at Alpala South and Hematite Hill occur within an area of elevated magnetic response within part of the complex magnetic signature that occurs over the wider Alpala area, known as the Alpala Magnetic Complex (Figure 5).

These new prospects occur along either side of the south-eastern extension of the Alpala Structural Zone ("ASZ"). The ASZ is a deep seated regional north‐west trending structure inferred to be a zone of crustal weakness tapping into copper and gold rich intrusions at Alpala Central.

The presence of a discrete copper / zinc soil anomaly, supports a preserved porphyry centre characterised by higher temperatures of mineralisation. This geochemical signature is typical of the metal zonation around many global porphyry copper‐gold deposits. The occurrences of more distinct copper / zinc anomalies further south of Alpala South, and at Alpala South-east are priority areas for the ongoing reconnaissance field inspection (Figure 6).

The outcrops at Alpala South contain porphyry style quartz-iron oxide veins, the fresh sulphides having been leached or oxidised from the weathering environment. The veining occurs within volcanic host rocks in a sheeted form, with veins orientated along a west-north-west trend, and dipping steeply towards the north-north-east (Figure 7).

The Alpala South discovery, like the recent finds of outcropping copper and gold mineralization at Aguinaga and Trivinio, highlights the fertility and potential of the broader porphyry copper-gold system at Cascabel. Mineralised surface outcrops such as these that display very high vein density, up to 10% of the total rock mass, and in such close proximity to the vertically extensive high grade copper and gold mineralization discovered at Alpala, make for certain drill targets.

The discovery of new outcrops around Alpala is becoming increasingly numerous and detailed. 1:500 scale "Anaconda" style surface mapping has now been completed over a surface extent of around 1.1 square kilometres. The frequency of discovery of new mineralised outcrops of porphyry style mineralisation at Cascabel endorses the importance of this system as a globally significant discovery.

A video presentation regarding the Alpala South target will be available today on the Company's website (www.solgold.com.au) and via BRR Media.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Mather consents to the inclusion of the information in the form and context in which it appears.

By order of the Board

Karl Schlobohm

Company Secretary

Please see link at the end of this announcement to view Figure 1: Regional Setting of the Cascabel Project, in the northern Andean Copper Belt.

Please see link at the end of this announcement to view Figure 2: Location of Cascabel project in northern Ecuador.

Please see link at the end of this announcement to view Figure 3: Outcrops recently discovered in the Hematite Hill and Alpala South areas.

Please see link at the end of this announcement to view Figure 4: Areas under 1:500 scale geological mapping following the discovery of outcropping mineralisation during detailed tributary and ridge-spur reconnaissance work.

Please see link at the end of this announcement to view Figure 5: Position of Alpala South and Hematite Hill prospects within the Alpala Magnetic Complex, showing reduced to pole inversion as background.

Please see link at the end of this announcement to view Figure 6: Location of recently discovered outcrops at Alpala South and Hematite Hill, showing soil copper/zinc anomalies.

Please see link at the end of this announcement to view Figure 7: Another example of the porphyry style quartz veins recently discovered in outcrops at Alpala South.

CONTACTS

Mr Nicholas Mather Tel: +61 (0) 7 3303 0665

SolGold Plc (Executive Director) +61 (0) 417 880 448

nmather@solgold.com.au

Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661

SolGold Plc (Company Secretary)

kschlobohm@solgold.com.au

Mr Ewan Leggat Tel: +44 (0) 20 3470 0470

SP Angel Corporate Finance LLP (NOMAD and Broker)

ewan.leggat@spangel.co.uk

Follow us on twitter @SolGold_plc

NOTES TO EDITORS

SolGold is a Brisbane, Australia based, AIM‐listed (SOLG) copper gold exploration and development company with assets in Ecuador, the Solomon Islands and Australia. The Company's objective is to create substantial shareholder value by discovering and defining world‐class copper‐gold deposits. SolGold's Board and Management Team have high vested interests in the success of Company, holding approximately 14% of its issued share capital, as well as strong track records in the areas of exploration mine development, investment, finance and law. SolGold's experience is augmented by state of the art geophysical techniques and the guidance of Newmont trained porphyry expert Dr Steve Garwin.

Cascabel, the Company's world class flagship copper‐gold porphyry project, is located in North West Ecuador on the under‐explored northern section of the richly endowed Andean Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A. ("ENSA") and approximately 11% of TSX‐V‐listed Cornerstone Capital Resources, which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession.

To date the Company has completed geological mapping, soil sampling, 14km2 and 9km2 Induced Polarisation and Magnetotelluric "Orion" surveys at the Alpala and Aguinaga targets respectively. By December 2015, the Company had completed approximately 25km2 of soil sampling, 14km2 of electrical surveys, 20,100m of drilling and expended approximately US$30m. Diamond drilling currently continues with two drilling rigs while additional rigs are being considered.

Cascabel is characterised by multiple targets, world class drilling intersections over 1km in length, and high copper and gold grades, as well as logistic advantages in location, elevation, water supply, proximity to road, port and power services and a progressive legislative approach to resource development.

SolGold is planning a resource statement at Alpala the most advanced target at Cascabel during 2016, in addition to drill testing the other key targets in the Cascabel concession at Aguinaga, Trivinio, Alpala Northwest, Hematite Hill, Alpala Southeast, Cristal, Tandayama-America and Chinambicito. By the end of 2016 the Company is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study for an economic development at Cascabel. SolGold is investigating both high tonnage / low grade open cut and high grade / low tonnage underground developments as a block caving operation.

Drill hole intercepts are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.6, determined using copper price of US$3/pound and gold price of US$40/gram.

In Queensland, Australia the Company is evaluating the future exploration plans for the Mt Perry, Rannes and Normanby projects. Joint venture agreements are still being investigated with the strategy for the joint venture partner to commit funds and carry out exploration to earn an interest in the tenements. Applications for ground in the Solomon Islands are pending.

SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and currently has a total of 953,897,601 ordinary shares issued, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 options exercisable at 14p.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

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