Astur Gold Corporation
TSX VENTURE : AST
FRANKFURT : CDC

Astur Gold Corporation

November 10, 2015 12:03 ET

Astur Gold Files Statement of Claim Challenging Asturias Government's Permit Decision and Seeking Compensation for Damages

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 10, 2015) - Astur Gold Corp. (TSX VENTURE:AST)(FRANKFURT:CDC) ("Astur Gold" or the "Company") announces that its wholly owned subsidiary Exploraciones Mineras del Cantábrico S.L. ("EMC") has filed a Statement of Claim before the Asturias Superior Court of Justice (the "Court") that accompanies the lawsuit launched earlier this year (see news release dated April 10, 2015). The lawsuit filed in April challenges the resolution (the "Resolution") of the Ministry of Economy and Employment of the Principality of Asturias (the "Ministry") dated February 10, 2015 that denied approval for the proposed underground mine submitted by EMC for its Salave Gold Project ("Salave"). The Ministry's decision was based on reports by the Cantabrian Hydrographic Confederation ("CHC"), which suggested that the proposed mine development would result in the discharge of mine waters that would not meet environmental water quality standards. The Company notes that there is no scientific basis to the CHC reports and vehemently disagrees with their conclusions. Not only will EMC be asking the Court to revoke the Resolution by the Ministry that denied the proposed development of Salave, but it will also be filing a petition to recover all costs incurred by EMC on the project since May 2010. Pending the outcome of this initial lawsuit, EMC will also consider to take all other possible steps and legal actions available to defend and protect the rights of the Company.

"It is unfortunate that we have to expend valuable time and resources to resolve the permitting issues that have continually delayed the development of Salave. However, we are confident that the Court's review of the permitting process will verify that EMC has demonstrated that Salave can be developed in a manner that will conform to all environmental standards required by law," commented Douglas Turnbull, President and CEO of Astur Gold. "As we have stated previously, we are prepared to take all necessary actions to protect our investment in Salave and the interests of our shareholders. The investment we have made in Salave has resulted in the design of a modern, world class gold mining operation that will meet or exceed all environmental standards and provide significant financial benefits for the residents of Tapia de Casariego and the Principality of Asturias."

The Statement of Claim includes an independent Audit Report detailing EUR8.59 million in expenditures incurred on Salave since Astur Gold's acquisition of EMC in 2010 and a Technical Report that will rebut the various CHC reports issued against the Salave project. Contrary to the reports issued by CHC, water quality prediction studies for the proposed mining operation at Salave conducted by expert consultants and independent bodies demonstrate that the proposed mining operation will not have a negative impact on the current water quality in the Salave Lagoons and surrounding area. Furthermore, all treated mine water and effluent is expected to be within legal water quality standards and therefore be in compliance.

During the environmental permitting process, EMC had engaged the government and local community in constructive dialogue that resulted in a number of significant design changes. These changes include the abandonment of the original development plan for a large scale open pit mine with final processing on site in favour of the current proposed underground gold mining operation with a substantially smaller footprint that incorporates the best environmental and water management practices in the industry.

FAPAS Studies

In August 2015, the Fund for Wildlife Protection Spain ("FAPAS") announced the results of studies that have been conducted in the area surrounding the Salave Lagoons which overlie the Salave orebody. The sampling conducted by FAPAS has identified concentrations of arsenic as high as 700 mg/kilogram ("ppm") in the soil surrounding the Salave Lagoons and is recommending that the Principality of Asturias declare the area as a contaminated zone with potential risks to farming activities in the area of Tapia de Casariego. The principal source of the contamination in the Salave Lagoons area is the naturally occurring arsenic-bearing rocks that host the Salave orebody. Mining and extraction of the Salave orebody could present an opportunity to remove the source of the arsenic contamination with best practices to the improvement of the current environment. These findings from FAPAS support the water studies conducted by EMC and its consultants predicting that water quality discharged from the proposed Salave mining operation would be substantially cleaner than the water currently in the Salave Lagoons. Furthermore, it is possible that water discharged from the proposed mining operation could be used to reduce arsenic levels in the Salave Lagoons and thereby improve overall water quality.

ABOUT ASTUR GOLD

Astur Gold Corp. is proposing the development of its 100% owned Salave Gold Project in Asturias, northern Spain. Salave is one of the largest undeveloped gold deposits in Western Europe. The Company will continue to work towards building a partnership with the people of Asturias to generate sustainable economic benefits for the region while balancing the needs of environmental protection, social harmony and community development.

ON BEHALF OF THE BOARD

Douglas Turnbull, Chief Executive Officer, President and Director

Neither 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

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