Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

May 26, 2011 09:01 ET

Acquisition of 1.9 Million Oz. Paul Isnard Gold Project Approved by Columbus Gold Shareholders; Completion of AGM

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2011) - Columbus Gold Corporation (TSX VENTURE:CGT) (the "Company") is pleased to announce that its shareholders have completed their 2011 Annual General Meeting. The shareholders approved all of management's proposals, including approval of its amended stock option plan under which the Company may grant up to 7,000,000 incentive stock options, and the re-election of incumbent directors Robert Giustra, Gil Atzmon, Don Gustafson, and Peter Gianulis to the board.

The Company's shareholders have also approved the option agreement to acquire up to a 100% interest in the Paul Isnard gold project located in French Guiana (containing a 43-101 compliant 1.9 M ounce inferred gold resource), which was originally announced by the Company on December 3, 2010. Additionally, the Company has signed an extension agreement with the parties to the Paul Isnard option agreement, such that the transactions contemplated therein are required to be completed on or before June 30, 2011 instead of May 31, 2011. The Company is proceeding to close the transaction over the next month, subject to TSX Venture Exchange acceptance and the completion of its remaining conditions precedent.

ON BEHALF OF THE BOARD,

Robert Giustra
Chairman & CEO

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting the closing of the Paul Isnard option agreement and the conditions precedent in connection therewith. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to obtain TSX Venture Exchange approval of the transactions contemplated under the Agreement; the ability to obtain applicable exemptions from prospectus and registration requirements in connection with the issuance of securities of the Company; the ability to satisfy the conditions precedent contained in the Agreement, including without limitation the ability to obtain a positive title opinion; the ability to complete milestones under the Agreement (if ultimately approved) in order to earn into the property, including without limitation the ability to obtain qualified workers, financing, permits, approvals, equipment, and ultimately a Bankable Feasibility Study in connection therewith; ability to obtain alternate financing; changes in the market; decisions respecting whether or not to pursue the transactions contemplated under the Agreement; non-performance by contractual counterparties; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; that the Company and Auplata will be able to successfully complete the conditions precedent to the Agreement; that the Company will be able to complete necessary milestones under the Agreement in a timely and successful fashion; that the Company will desire to continue earning into the Property over time; the ability to locate sufficient financing for ongoing operations; and general market conditions. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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