Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

May 17, 2011 10:42 ET

New Gold Discovery: Columbus Gold Intersects 2.42 g/t Gold Over 13.6 Meters in First Phase of Drilling at Eastside Gold Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2011) -Columbus Gold Corporation (TSX VENTURE:CGT)(OTCBB:CBGDF) (the "Company" or "Columbus Gold") is pleased to announce the completion of Phase 1 drilling at the Eastside Gold Project, Nevada, where twelve holes totaling 7,405 feet (2,125 meters) were completed. The best result was in drill hole ES-4 which intersected 13.6 meters of 2.42 g/t Au at a depth of 157.6-171.2 m (45 feet of 0.070 opt Au from 520-565 feet), including 6 meters of 5.17 g/t from 165.2-171.2 (20 feet of 0.151 opt from 545-565 feet) and 1.5 meters of 12.90 g/t from 166.7-168.2 m (5 feet of 0.337 opt from 550-555 feet). The gold zone drilled in hole ES-4 is interpreted to be open in all directions. The company has added thirty new claims to the north in order to cover possible strike extensions and is proceeding with a detailed mapping program in the area of ES-4, which will likely be followed with supplemental geophysical surveys. Subsequently, a Phase 2 drilling program will commence concentrating on extending the gold mineralization cut in ES-4, and also testing the undrilled margins of other rhyolite domes on the property.

Significant Drill Intercepts:
HoleFeetOPTMeters, Grams/tonne
ES-2155-160 ft0.007 opt(47.0-48.5 m. of 0.24 g/t)
490-4950.020(148.5-150.0 of 0.69)
ES-430-350.047(9.1-10.6 of 1.62)
50-600.011(15.2-18.2 of 0.36)
75-850.012(22.7-25.8 of 0.40)
95-1300.013(28.8-39.4 of 0.45)
165-1700.012(50.0-51.5 of 0.42)
245-2550.012(74.2-77.3 of 0.41)
520-5650.070(157.6-171.2 of 2.42)
including
545-5650.151(165.2-171.2 of 5.17)
including
550-5550.377(166.7-168.2 of 12.90)
ES-8115-1350.011(34.8-40.9 of 0.37)
190-2000.010(57.6-60.6 of 0.34)
ES-12360-3650.014(109.1-110.6 of 0.49)
390-3950.009(118.2-119.7 of 0.32)
810-8150.010(245.5-247.0 of 0.33)

Gold mineralization at the Eastside Project is localized in quartz veins and stockworks associated with a group of four separate rhyolite flow-dome complexes, each ranging from 400 to 700 meters in diameter. Gold is hosted both in the rhyolite and in the adjacent wall rocks, which consist of layers of Tertiary andesitic tuffs, andesitic lahars, and felsic tuffs and tuff breccias. The rhyolite itself, particularly where intrusive, is highly anomalous in gold. For example, drill hole ES-4 cut 400 feet of highly anomalous rhyolite (+100 ppb gold on average, ranging from 45-286 ppb Au over the entire 400 feet) before striking the best grades, reported above, in the adjacent andesitic tuffs.

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 VP of Columbus Gold's wholly-owned US operating subsidiary, Columbus Gold (U.S.) Corporation and is the principal of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.

Assays of drill cuttings from Eastside were performed by American Assay Laboratory in Sparks, Nevada. Standards and blanks were included in the results. A program of check assaying of duplicate splits, taken at the drill rig, is in progress. Any significant deviations from the results herein will be announced in a subsequent press release when all check assay results have been received.

About Columbus Gold

Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Exploration activities are managed by Cordex which is owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development. Columbus Gold currently has 13 of its 22 strategically located gold projects in Nevada joint ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.

ON BEHALF OF THE BOARD,

Robert Giustra, Chairman & CEO

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting drilling, and the Company's general exploration plans. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.

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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