True Gold Mining Inc.
TSX VENTURE : TGM

True Gold Mining Inc.

July 13, 2015 06:30 ET

True Gold Provides Construction Update for Karma Mine

Draws $14 Million from Franco Nevada and Sandstorm Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 13, 2015) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to report that the Company has drawn down an additional $14 million of the $100 million financing from Franco-Nevada (Barbados) Corporation and Sandstorm Gold Bank Ltd. This is the third draw down that True Gold has made under the facility, bringing the total amount drawn to $71.6 million. The Company currently has approximately $37.5 million in cash. Construction remains on schedule with the planned placing of ore on the heap leach pads in early 2016 and first gold pour anticipated for the end of Q1-2016.

Christian Milau, President and CEO of True Gold stated, "There is an atmosphere of excitement on site with a workforce of over 500 focusing on earthworks and the processing plant final assembly. We have progressed rapidly with site development and construction, highlighted by commissioning of the mine fleet, completion of the raw water pond excavation and initial construction of the raw water pipeline."

Construction Update:

The Karma mine is in full construction with all required personnel on site. Highlights since the last project update (see news release dated June 17, 2015) include:

  • Excavation of raw water pond completed
  • Burying of the barrage raw water pipeline commenced
  • Water pipeline from barrage to site 20% complete
  • Excavation of storm water pond commenced
  • Excavation of Pregnant Leach Solution (PLS) pond commenced
  • Stripping of Cell 1 of heap leach pad completed
  • Mine fleet commissioned (six Komatsu 785 trucks, PC 3000 excavator, WA800 loader)
  • Assembly of hard rock crusher has commenced
  • Assembly of Absorption, Desorption and Refining (ADR) plant structural steel has commenced

Planned infrastructure activities upon delivery at site:

  • Assembly of assay lab
  • Assembly of gold room structural steel
  • Assembly of the cement silos
  • Commissioning of the remaining three generators and full completion of the power plant

To view the latest photos of construction efforts at Karma please click here:

http://truegoldmining.com/our-projects/karma-project#field-project-tab-tab-7

All figures are in United States dollars ($) unless otherwise noted.

David Laing, Chief Operating Officer of True Gold is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.

About True Gold

True Gold Mining Inc. is where gold comes to life. The Karma mine is the platform to becoming a mid-tier producer. We are committed to growing a successful gold company by focusing on projects with low costs, low technical risks and solid economics.

Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Christian Milau, President & CEO

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.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes, the Company's ability to efficiently recommence operations at the Karma Project, that the Company will receive additional drawdowns under the financing agreement with Franco-Nevada and Sandstorm and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, uncertainties related to the Company's relationship with communities that surround its properties in Burkina Faso, risks related to the financing agreement with Franco-Nevada and Sandstorm, including the Company's ability to meet its scheduled delivery obligations, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 27, 2015 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.

Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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