Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

August 16, 2016 16:01 ET

Unigold Intersects 4.0 Metres Averaging 10.07 g/t Au; 20.9 g/t Ag; 0.2% Cu and 2.4% Zn; Extends Candelones Extension Footprint to the West

TORONTO, ONTARIO--(Marketwired - Aug. 16, 2016) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce that exploration drilling at the Candelones Extension deposit, within the Company's 100% owned Neita Concession in the Dominican Republic, has intersected high grade precious and base metal mineralization west of Target C (UGD PR# 2016-05) in an untested area within the current resource limits.

Two holes, collared on Section 1150 East (Ref. Figure 1.0), have extended the mineralization at Target C twenty five (25) metres to the west of LP16-105. The holes targeted an undrilled area south of the andesite-dacite contact (Ref. Figure 1.0) and up plunge along an interpreted high grade corridor (Ref. Figure 3.0).

Results from both holes are summarized in Table 1.0.

Table 1.0 - Significant Results Candelones Extension
Hole From (m) To (m) Interval (m)(1) Au (g/t) Ag (g/t) Cu (%) Zn (%)
LP16-108 164.0 204.0 40.0 0.6 1.5 0.2 0.0
including 190.0 197.0 7.0 1.3 2.2 0.3 0.0
LP16-109 160.0 175.0 15.0 3.2 6.4 0.1 0.7
including 165.0 169.0 4.0 10.1 20.9 0.2 2.4
(1) Interval Width is measured down hole and is not True Width. There is insufficient data to estimate True Width at this time.

Joseph Del Campo, Interim President and CEO of Unigold, notes: "We are very pleased with the initial results from our current exploration drill program. The results support our working model of an easterly plunging system that appears to constrain higher grade mineralization over the defined strike length of the deposit (1,100 metres). These latest results have expanded the footprint of the Candelones Extension deposit to the west where it was originally interpreted to have been truncated. The mineralization remains open to the west offering a potential exploration target for future drill programs. We are continuing the systematic exploration at the three targets identified earlier this year with the objective of increasing the size and grade of the Candelones Extension deposit. The results from this program will be evaluated and targets will be prioritized once this phase of exploration is completed. The drill has been relocated to test the interpreted vertical feeder at Target C, below holes LP52 and LP57."

The historical drilling defining the western limit of the Candelones Extension deposit targeted the andesite-dacite contact which is several hundred metres north of the high grade results intersected by holes LP16- 103, 104, 105 and 109 that define the Target C trend (Ref. Figures 1.0). This trend was originally intersected by holes LP52 (15.9 metres @ 11.36 g/t Au; 38.3 g/t Ag; 0.4% Cu; 5.1% Zn) and LP57 (10.0 metres @ 6.71 g/t Au; 2.0 g/t Ag; 0.1% Cu; 0.6% Zn), 100 metres to the east of LP16-109.

This new trend appears to be associated with intense, sub-vertical faulting. Both strike slip and dip slip movement is interpreted along the fault with multiple phases of movement. Faulting appears to be both pre and post mineral. Additional drilling is necessary to determine the orientation and extent of the faulting.

Both mineralized intervals are comprised of large angular to rounded fragments of variable composition but predominantly dacitic, hosted in a silica / sulphide matrix. Multiple faults transect the interval and shearing is observed at the upper and lower contacts. Barite replacement is typical where the shearing is most intense. Silicification is intense and typically coincides with the highest grade mineralization, sulphide content is generally low.

LP16-108 intersected a forty metre interval of monomictic breccia with sub-angular to sub-rounded fragments of predominantly dacite composition (volcanics and volcanoclastics) and occasional fragments of fine grained sulphides (predominantly pyrite) in a dacitic matrix. Higher grades are typically associated with increased silica +/- sulphide as matrix support of the fragments. The interval is intensely faulted with well developed clay gouge common throughout the interval.

LP16-109 intersected a 4.0 metre interval of similar monomictic breccia composed of dacitic fragments in a dacitic matrix. The interval has been intensely silicified. It occurs within a broader, polymictic breccia comprised of rounded to angular fragments of variable composition and size hosted in a in a dacitic matrix that is often clay altered to gouge. Grades in the polymictic breccia are significantly less than that of the monomictic breccias.

Numerous fine grained mafic intrusives up to 3.0 metres in length disrupt the mineralization in both holes. These dikes or sills are largely barren and are late stage events.

To view FIGURE 1.0 - CANDELONES PROJECT SURFACE GEOLOGY AND DRILL PLAN, please visit the following link: http://media3.marketwire.com/docs/UnigoldFig1.jpg

To view FIGURE 2.0 - CANDELONES EXTENSION CROSS SECTION 1150 EAST, please visit the following link: http://media3.marketwire.com/docs/UnigoldFig2.jpg

To view FIGURE 3.0 - CANDELONES EXTENSION CONTOURED LONGITUDINAL SECTION (Au gpt x metres) WITH DRILL TARGETS, please visit the following link: http://media3.marketwire.com/docs/UnigoldFig3.jpg

Premier Mining Destination - Dominican Republic

The Dominican Republic is host to world-class gold and base metal mines and deposits. The government supports development and exploration in the mining sector. In addition, the country has well established Mining Laws and Environmental Laws. Unigold's wholly owned flagship property, Neita is compliant with all mineral and environmental requirements and work is conducted to internationally accepted environmental and social standards. The Neita concession exploration license is in good standing.

QA/QC

Diamond drilling at the Candelones Project utilizes both HQ and NQ diameter tooling. Holes are established using HQ diameter tooling before reducing to NQ tooling to complete the hole. The core is received at the on-site logging facility where it is, photographed, logged for geotechnical and geological data and subjected to other physical tests including magnetic susceptibility and specific gravity analysis. Samples are identified, recorded, split by wet diamond saw, and half the core is sent for assay with the remaining half stored on site. A minimum sample length of 0.3 metres and a maximum sample length of 1.5 metres are employed with most samples averaging 1.0 metres in length except where geological contacts dictate. Certified standards and blanks are randomly inserted into the sample stream and constitute approximately 5-10% of the sample stream. Samples are shipped to a sample preparation facility in the Dominican Republic operated by Bureau Veritas. Assaying is performed at Bureau Veritas Commodities Canada Ltd.'s laboratory in Vancouver, B.C. Canada. All samples are analyzed for gold using a 50 gram lead collection fire assay fusion with an atomic adsorption finish. In addition, most samples are also assayed using a 36 element multi-acid ICP-ES analysis method.

Wes Hanson P.Geo., Chief Operating Officer and Technical Director of Unigold, who is a qualified person under the definitions established by National Instrument 43-101, has reviewed and approved the contents of this press release.

About Unigold Inc. - Discovering Gold in the Caribbean

Unigold is a Canadian based mineral exploration company traded on the TSX Venture Exchange under the symbol UGD, focused primarily on exploring and developing its gold assets in the Dominican Republic.

Forward-looking Statements

Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.

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