RCG Completes PEA on Dufferin Gold Project, Announces the Acquisition of West Dufferin

VANCOUVER, BC--(Marketwired - November 28, 2016) -

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Further to its news releases of October 17 and November 9, 2016, Resource Capital Gold Corp., (TSX VENTURE: RCG) ("RCG" or the "Company") is pleased to announce the completion of a positive Preliminary Economic Assessment ("PEA") on the Dufferin Gold Mine and the West Dufferin property being acquired by the Company (collectively "Dufferin") located in Nova Scotia, Canada.

PEA RESULTS

The PEA was completed by MineTech International Ltd. of Halifax, Nova Scotia, and Global Mineral Resource Services of Vancouver, British Columbia. Economic results in the PEA show the production of 216,050 ounces of gold during a 10-year mine life, with a pre-tax IRR of 158% and a capital payback period of 1.3 years with a net present value of CAD$121,100,000 at a 5% discount rate. These economic numbers do not include any of the planned production from the stockpiled materials, which would be in addition to such amounts, and which the Company plans to commence in January, 2017.

The PEA suggests a 6-month pre-production period followed by 6 months of initial mining ramping up to full 300-tpd production at the end of Year 1. The pre-production period has already started, with Company staff onsite for the last two months in preparation for processing of the stockpiled materials starting in January along with trial mining later in Q1 of 2017.

The PEA anticipates at total of CAD$9.85M in capital expense, which includes $5.29M in plant, equipment, and pre-production development cost; $1.20M of reclamation bonding; $2.29M of working capital; and $1.06M in contingency. The Company believes that with a combination of cash on hand and early cash flow from processing of stockpiled material and underground materials already developed, the need for the full anticipated capital in Year 1 can be considerably reduced.

"This positive PEA is a major milestone in the Company's plans to consolidate near-term precious-metals production," said RCG's Chairman and CEO George Young. "The Dufferin project offers the opportunity for relatively lower-risk growth through our more than doubling of the project's resources, acquisition of adjacent property, and a 4x multiple of the project's NPV over previous analyses. We are very pleased with the PEA results and look forward to quickly advancing the project."

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks of failure associated with its production decision.

WEST DUFFERIN ACQUISITION: ADDITION OF 1.9 KM OF STRIKE LENGTH TO THE DUFFERIN PROJECT; ADDS A FOURTH PROPERTY WITH TANGIER AND FOREST HILL TO RCG'S ROLL UP STRATEGY

The Company has expanded the Dufferin project area by 92% through the acquisition of West Dufferin, which consists of 809 hectares of mineral claims lying adjacent to and contiguous with the Dufferin mineral claims. The West Dufferin portion of the Dufferin project contains the geological continuation of the structures to be mined at the Dufferin gold mine. The company has commissioned resource modeling at West Dufferin, and the PEA includes mineral resources and economic assessments of the mineral resources identified by the drilling conducted to date at the West Dufferin portion of the project.

The West Dufferin portion of the project is being purchased from a private entity by RCG for a total consideration of US$300,000 at closing (US$50,000 of which has been paid), expected to be on or about December 20, 2016, followed by two payments of US$350,000 on each of the first and second anniversaries of closing, plus an NSR royalty of 2% from production of gold.

A total of 16,453 meters of previous drilling has been undertaken at West Dufferin, cutting through what are believed to be the same 14 "saddle reef" structures as those drilled at the Dufferin gold mine. Historic production of approximately 41,800 ounces of gold at West Dufferin has also been conducted on those structures. The drilled strike length of the saddle reef structures on West Dufferin is approximately 1.9 km, which, when combined with the approximately 1.4 km strike length of those same structures through the Dufferin gold mine area previously acquired, results in a total strike length of 3.3 km.

Within the 1.9 km of drilled strike length at West Dufferin, resource modeling took place on only 600 m of strike length, leaving an additional 1.3 km for expansion. Combined with the approximately 1.4 km of identified eastern extension of mineralized structures at the Dufferin gold mine, this provides an additional 2.7 km of mineralized quart vein structures along which to extend and increase the density of modern drilling sufficiently to support expanded resource modeling.

The addition of West Dufferin to the Dufferin gold mine project brings to four the number of properties now included in the Company's gold property roll up strategy in Nova Scotia. The Company previously announced the acquisition of Tangier (41,700 ounces gold in the indicated category (134,000 tonnes grading 9.67 g/t Au), and 131,500 ounces gold in the inferred category (271,000 tonnes grading 15.09 g/t Au)) and Forest Hill (mineral resource of 173,800 ounces gold in the indicated category (225,000 tonnes grading 24.02 g/t Au) and 152,900 ounces gold in the inferred category (383,000 tonnes grading 12.42 g/t Au)). When combined with the ounces announced today, the four properties represent total resources of 273,500 ounces in the indicated category and 434,400 ounces in the inferred category. The Company will file technical reports supporting the Tangier and Forest Hill mineral resource estimates within 180 days of September 9, 2016.

TRIAL PRODUCTION TO COMMENCE IN Q1, 2017

As the Dufferin gold mine is a fully permitted operational underground gold mine, the Company will commence operations in Q1 of 2017, with the processing of stockpiled materials at the mine commencing in mid-January while making final preparations for the resumption of trial mining. The project comprises a total 1,684 hectares in 104 mineral claims that are all in good standing. The property contains +17 known east-west trending "saddle reef" quartz vein structures, situated in a vertical assemblage, each hosting free milling gold and showing expansion potential along a total of 2.7 kilometers.

QUALIFIED PERSONS

The scientific and technical data contained in this news release was reviewed and approved by Michael P. Gross, M.Sc., P.Geo., who is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Gross reviewed the technical reports referenced above on behalf of the Company.

The PEA was prepared by independent Qualified Persons Mr. Douglas Roy M.A.Sc., P.Eng., and Mr. Patrick Hannon, M.A.Sc., P.Eng. of MineTech International Ltd. Mr. Roy also prepared the East Dufferin mineral resource. Both Mr. Roy and Mr. Hannon have reviewed and approved the contents of this news release.

The mineral resource at West Dufferin was prepared by independent Qualified Person Mr. Greg Mosher of Global Mineral Resource Services. Mr. Mosher has reviewed and approved the contents of this news release.

On behalf of the Board of Directors of Resource Capital Gold Corp.

George S. Young, Chairman and CEO

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.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Company's plans for Dufferin.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.