Auriga Gold Signs US$23 Million Production Financing Term Sheet for Maverick Gold Project, Manitoba

TORONTO, ONTARIO--(Marketwire - June 21, 2012) -

NOT FOR DISTRIBUTION TO A US NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES

Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") is pleased to announce that it has entered into a non-binding term sheet with a private, institutional investor with regard to a US$23 million gold prepay agreement, the net proceeds of which will be used to fund the development of the Company's Maverick Gold Project, located 65 kilometers northeast of Flin Flon, Manitoba. The proposed US$23 million financing will fund the refurbishment and development of the Puffy Mine and Mill at the Maverick Gold Project as outlined in the Company's Preliminary Economic Assessment filed on SEDAR on February 21, 2012. The facility will replace the indicative term sheet for a US$10 Million loan announced on April 26, 2012.

Richard Sutcliffe, Auriga Gold's President and CEO, commented "We are very pleased to have a facility that we expect will fully fund the Maverick Gold Project to production. This proposed credit facility is significant in that it will provide a non-dilutive financing option for the project and enable the Company to retain certain flexibility on metals payments and pricing of the majority of gold production."

The gold prepay facility will be repaid by delivery of predetermined gold amounts averaging less than 20% of the scheduled gold production for a period of 36 months following a 6 month grace period. The balance of production remains unallocated and the Company retains the flexibility to sell such unallocated production as it sees fit, including pricing production at the then prevailing market rates. The gold prepay facility is subject to completion of technical and legal due diligence, definitive documentation, and receipt of regulatory approvals, including that of the TSX Venture Exchange, and conditions precedent typical of transactions of this nature. Knight Capital Americas, L.P., a subsidiary of Knight Capital Group, Inc. based in New Jersey, is acting as advisor to Auriga Gold on this transaction.

About Auriga Gold

Auriga Gold Corp. is a Canadian mine development and exploration company focused on developing the Puffy Mine and expanding gold resources on its Puffy and Nokomis deposits (the "Maverick Gold Project"). The Company plans to upgrade and expand the resources at the Maverick Gold Project, initiate test mining, complete feasibility studies of mineral reserves, and bring the Puffy Mine back into production. The Puffy Mine includes a 1,000 tpd flotation mill, a developed underground ramp to 135 metres depth, is fully road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the financing, use of proceeds and the future develop the Maverick Gold property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's Management's Discussion and Analysis for the Three and Nine Months ended December 31, 2011, available on www.sedar.com. Although Auriga Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Auriga Gold does not undertake to update any forward-looking information, except in accordance with applicable securities laws.