Auriga Gold Corp.

Auriga Gold Corp.

November 03, 2011 08:30 ET

Auriga Gold to Acquire 100% of Nokomis Property, Flin Flon area, Manitoba

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") is pleased to announce it has signed an agreement (the "Agreement") to purchase the 46% minority interest in the Nokomis Property currently held by Claude Resources Inc. ("Claude"). Prior to the acquisition, Auriga held an undivided 54% interest in the Nokomis Property, which is contiguous to the Puffy Lake Property and part of the Maverick Gold Project. The Nokomis property comprises 39 staked claims with an area of 2,200 hectares, and is located less than 8 kms northeast of the Puffy Lake Mill.

Under the terms of the Agreement, Auriga Gold has agreed to issue to Claude 3,428,571 common shares of Auriga Gold at an issue price of $0.35 per share. The issued shares will be subject to a hold period of four months, from the closing date of the definitive agreement. After the acquisition, Auriga Gold will have a total of 44,034,052 shares outstanding. The acquisition is subject to certain conditions including, but not limited to, the receipt of all requisite regulatory approvals including the approval of the TSX Venture Exchange. The transaction is expected to close on or about November 15, 2011.

Richard Sutcliffe, Auriga Gold's CEO commented, "The acquisition of the remaining interest in the Nokomis claims brings our Maverick Gold Project to full 100% ownership and provides an excellent exploration opportunity to expand our resources on the project. We expect to commence a drilling program on the Nokomis property this winter to test various mineralized zones for resource expansion."

The Nokomis Property is reported to contain approximately 70,000 ounces of gold in a historical resource of 349,110 tonnes at a grade of 6.10 g/t gold (Technical Report for Pioneer Metals Corporation dated September 8, 2006 and filed on SEDAR). This resource is a historical resource based on diamond drilling and completed in 1985. The historical resource predates NI 43-101 and is not compliant with current definitions. Neither the Company nor a Qualified Person have carried out sufficient work to verify the historical estimate or to classify the historical estimates under the current mineral resource terminology and consequently the historical estimate should not be relied on by investors.

About Auriga Gold

Auriga Gold Corp. is a Canadian mining company focused on developing the Puffy Lake Mine and expanding gold resources on its Puffy Lake and Nokomis properties (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 Lake Mine back into production. The Puffy Lake 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.

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be achieved nor that the proposed operations will be economically viable. This press release is not and is not to be construed as an offer to buy or sell securities in the United States.

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.

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