Cortez Gold Corp.
TSX VENTURE : CUT

Cortez Gold Corp.

August 03, 2011 16:00 ET

Cortez Gold Corp.: Clarification and Retraction of Previously Issued Technical Disclosure

VANCOUVER, BRITISH COLUMBIA --(Marketwire - Aug. 3, 2011) - Cortez Gold Corp (TSX VENTURE:CUT) ("Cortez" or the "Company") announces that, as a result of a review by the British Columbia Securities Commission, the Company is issuing this news release to clarify our disclosure and to retract certain of the previous technical disclosure filed by the Company on SEDAR at www.sedar.com and posted on its website at www.cortezgoldcorp.com.

Real de Guadalupe Property

The Company has an option to acquire 100% of the issued and outstanding shares of Minera Ligia, S.A. de C.V., which holds an option to purchase a 100% interest in the Real de Guadalupe polymetallic gold-silver-copper-zinc-lead project in Guerrero State, Mexico (the "Real de Guadalupe Property").

The Company's November 2, 2010 news release and material change report (the "November 2 Disclosure") clarified disclosure from the Company's November 1, 2010 news release and material change report (the "November 1 Disclosure") regarding known veins of the Real de Guadalupe Property. In its November 2, 2010 news release, Company clarified that the known veins were historical estimates only (the "Real de Guadalupe Historical Estimates Disclosure"). The Real de Guadalupe Historical Estimates Disclosure was subsequently contained in the Company's management discussion and analysis for the financial year ended February 28, 2011 that was filed on SEDAR on June 27, 2011 (the "2011 MD&A") and a fact sheet on the home page of the Company's July 20, 2011 website (the "Fact Sheet").

In the November 2 Disclosure and the 2011 MD&A, the Company did not identify the source and date of the Real de Guadalupe Historical Estimates Disclosure, did not comment on the relevance and reliability of the Real de Guadalupe Historical Estimates Disclosure, and did not include an explanation of the differences between "ore resources" (the term to which the stated quantity was compared) and "mineral resources" and "mineral reserves" (both as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101")). In addition, in the November 2 Disclosure and the 2011 MD&A, the Company did not disclose the effective date of, details of quantity and grade or quality of, or details of the key assumptions, parameters and methods used to estimate the Real de Guadalupe Historical Estimates Disclosure. Finally, the Real de Guadalupe Historical Estimates Disclosure found in the November 2 Disclosure, the 2011 MD&A and the Fact Sheet does not comply with the historical estimates disclosure requirements set out in NI 43-101.

The Real de Guadalupe Historical Estimates Disclosure does not comply with NI 43-101 and the Real de Guadalupe Historical Estimates Disclosure contained in the November 2 Disclosure and any subsequent disclosure of the Company, including the 2011 MD&A and the Fact Sheet, should not be relied on. The Company retracts the Real de Guadalupe Historical Estimates Disclosure, has removed the Fact Sheet from its website and, as discussed below, has amended the 2011 MD&A to reflect such retraction.

At this time the Company does not have data and information about any historical resource estimates suitable for disclosure under NI 43-101. In the event the Company receives a material mineral resource estimate on any of its existing mineral properties, it will promptly disclose the results and file a supporting technical report if required by NI 43-101.

Petlacala Project

The Company has an option to acquire 100% of the issued and outstanding shares of Cortez Minera Mexicana, S.A. de C.V., which holds an option to purchase a 100% interest in the Petlacala gold-silver project in Guerrero State, Mexico (the "Petlacala Project").

Petlacala Historical Estimate Disclosure

The Fact Sheet disclosed a 2005 estimate by the Exploration Department of Servicios Industriales Peñoles of a potential that the Company designated as being a historical estimate (the "Petlacala Historical Estimate Disclosure"). The Petlacala Historical Estimate Disclosure does not comply with the historical estimates disclosure requirements set out in NI 43-101 and should not be relied on. The Company retracts the Petlacala Historical Estimates Disclosure and, as previously noted, has removed the Fact Sheet from its website.

At this time the Company does not have data and information about any historical resource estimates suitable for disclosure under NI 43-101. In the event the Company receives a material mineral resource estimate on any of its existing mineral properties, it will promptly disclose the results and file a supporting technical report if required by NI 43-101.

Potential Mineral Deposit Disclosure

The Company's April 12, 2010 news release and material change report (the "April 12 Disclosure") and the 2011 MD&A disclosed a potential resource at the Petlacala Project, based on dimensions of the system and the longitudes of the veins (the "Potential Mineral Deposit Disclosure").

The Potential Mineral Deposit Disclosure did not include a range of grade. Furthermore, in the April 12 Disclosure and the 2011 MD&A, the Company did not state that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource, and did not state the basis on which the disclosed potential quantity and grade was determined. Therefore, the Potential Mineral Deposit Disclosure does not comply with NI 43-101 and the Potential Mineral Deposit Disclosure contained in the April 12 Disclosure and any subsequent disclosure of the Company, including the 2011 MD&A, should not be relied on. The Company retracts the Potential Mineral Deposit Disclosure and, as discussed below, has amended the 2011 MD&A to reflect such retraction.

Revised MD&A

The Company has amended the 2011 MD&A to reflect the retraction of the Real de Guadalupe Historical Estimates Disclosure and the retraction of the Potential Mineral Deposit Disclosure. The amended 2011 MD&A was filed on SEDAR at www.sedar.com on August 2, 2011.

On Behalf of the Board of Cortez Gold Corp.

Robert Eadie, President & Chief Executive Officer

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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