Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

June 25, 2008 09:00 ET

Columbus Gold Commences Drilling at Awakening

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2008) - Columbus Gold Corporation (TSX VENTURE:CGT) ("Columbus Gold" or the "Company") is pleased to announce that it has commenced a Phase I drilling program at its Awakening gold project (the "Property"), located 45 miles (72 km) north-northwest of Winnemucca, Nevada.

Twenty-four drill sites are permitted and bonded. The program will consist of up to approximately 7,200 ft (2,200 m) of reverse circulation (RC) drilling in 10 to 12 holes.

The Awakening District produced 26,262 ounces of gold from 1914-1963, largely from the Jumbo Mine. Gold mineralization on the east side of the district occurs with narrow quartz veins cutting Mesozoic shale and sandstone. The mines on the east side of the district are best known for small but often very high-grade "pockets" of gold ore; recent drilling however has identified a new type of discovery in the district with broad zones of low grade mineralization in quartz stockworks, potentially minable by open pit.

The Property was recently explored with a series of excavator trenches followed by the drilling of six rotary holes in January 2008 as reported below. Columbus confirmed the drill results by re-logging the drill holes and verifying the assay results, by both the duplicate assaying of pulps and also by assaying separate splits of cuttings taken at the rig. In addition, preliminary metallic screen assaying of cuttings, available from only one hole (ABZN), indicates the potential to significantly upgrade gold values in both high and low grade samples. Metallic screen assaying of the other holes is in progress.

The Awakening Property is centered in an area of considerable exploration. XCal is drilling at the Sleeper Mine to the northwest; Evolving Gold is planning a drill program to the west; and Newmont is earning into Fronteer's Sandman Project to the east-southeast.



Results from the six holes drilled in January are as follows:

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Inter- Inter-
Drill Depth Depth Orient- From To val From To val Au
hole (ft) (m) ation (ft) (ft) (ft) (m) (m) (m) (g/t)
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ABZD 540 164.6 Vertical 90 120 30 27.4 36.6 9.1 1.04
(i) Hole 170 230 60 51.8 70.1 18.3 0.37
240 250 10 73.2 76.2 3.0 1.06
250 275 25 76.2 83.8 7.6 0.54
365 420 55 111.3 128.0 16.8 1.68
420 435 15 128.0 132.6 4.6 0.42
500 515 15 152.4 157.0 4.6 0.39
530 540 10 161.6 164.6 3.0 0.39
(i) Hole bottoms in subgrade but highly anomalous values
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ABV 330 100.6 Angle 145 180 35 44.2 54.9 10.7 1.45
(i) hole 195 240 45 59.5 73.2 13.7 0.70
305 315 10 93.0 96.0 3.0 0.35
(i) Hole bottoms in subgrade but highly anomalous values
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ABZN 220 67.1 Vertical 95 100 5 29.0 30.5 1.5 24.1
Hole 175 180 5 53.4 54.9 1.5 0.50
190 195 5 57.9 59.5 1.5 3.31
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APB 80 24.4 Angle 65 75 10 19.8 22.9 3.0 0.75
hole
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ABZ 170 51.8 Angle 155 160 5 47.3 48.8 1.5 2.44
hole
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AMB 180 54.9 Vertical 5 10 5 1.5 3.0 1.5 0.44
Hole 30 35 5 9.1 10.7 1.5 0.90
65 70 5 19.8 21.3 1.5 0.43
105 115 10 32.0 35.1 3.0 0.50
130 135 5 39.6 41.2 1.5 1.22
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Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical contents of this news release. Mr. Wallace is a partner of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.

Subject to underlying NSR royalties, the Awakening Property is 100% controlled by Columbus Gold pursuant to two lease agreements. Under the terms of the lease agreement with Dean and Camron Stitzel dated effective April 25th, 2008 (the "Stitzel Lease"), Columbus Gold leased 21 mining claims for a renewable 10 year term, in consideration for advance royalties of US$50,000 and 76,037 shares of Columbus Gold on execution; advance royalties of US$50,000 and US$50,000 in common shares of Columbus Gold on the first anniversary of the effective date; and, advance royalties of US$100,000 annually on the second through tenth anniversaries of the effective date. The Stitzel Lease provides for an NSR royalty of between 3% and 6% based on the price of gold.

Under the terms of the lease agreement with Bald Mountain Mining Company dated effective June 2nd, 2008 (the "Bald Mtn Lease"), Columbus Gold leased 38 mining claims for a renewable 10 year term, in consideration for advance royalties of US$10,000 and 25,000 common shares of Columbus Gold on execution; advance royalties of US$20,000 and 25,000 common shares of Columbus Gold on the first anniversary of the effective date; advance royalties of US$30,000 on the second anniversary of the effective date; advance royalties of US$40,000 on the third anniversary of the effective date; and, US$50,000 in advance royalties annually on the fourth through tenth anniversaries of the effective date. Bald Mountain retains a 3% NSR royalty.

ABOUT COLUMBUS GOLD

Columbus Gold Corporation is a gold exploration and development Company operating principally in Nevada. The Company has an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of precious metal mining projects. Columbus controls a 100% interest, subject to royalties, in 25 gold projects strategically located along or near Nevada's most productive gold trends and 6 silver and copper projects located in Arizona and Utah. The Company's project activities are managed by Cordilleran Exploration Company ("Cordex"), owned and operated by John Livermore and Andy Wallace who have a long and successful history of gold discovery and mine development in Nevada.

The Company maintains active generative (prospecting) and evaluation programs and, as a key element of strategy, broadens exposure, minimizes risk and maintains focus on high priority prospects while seeking industry finance through joint ventures on selected projects. The Company currently has 14 of its projects joint ventured to major and junior mining companies.

ON BEHALF OF THE BOARD,

Robert F. Giustra, President & CEO, Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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