SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update

12 April, 2016

Mineralisation at Surface Discovered 400m South of Alpala Creek

The Board of SolGold (AIM code: SOLG) is pleased to provide the following exploration update for the Company's Cascabel copper-gold porphyry project in Ecuador.

HIGHLIGHTS:

• Porphyry style mineralisation discovered on surface some 400m south of Alpala Creek, pointing to a new target area, Alpala South.

• 1:500 scale geological mapping progresses and upgrades the Hematite Hill Prospect.

• Detailed geological mapping continues as rock-saw channel sampling begins over both Hematite Hill and Alpala South areas.

FURTHER INFORMATION:

Cascabel Project

The Cascabel Project is located within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global resource assets. Cascabel boasts numerous large porphyry copper-gold targets within a cluster of prospective porphyries in a relatively unexplored section of the northern Andean copper belt that produces oxidised, gold rich porphyry deposits (refer Figure 1 Regional Setting).

SolGold, as an active explorer in Ecuador, enjoys the support of the Ecuadorean Government in developing the nation's exploration and mining industry. Cascabel presents numerous logistic advantages which augment its likely large scale and known high copper-gold grades. The project is located on a sealed multi-lane national highway at a low elevation with abundant water, labour, hydroelectric power, and a short 80km distance to a Pacific deep water port site at San Lorenzo and 150kms to an established deep water port at Esmeraldas (refer Figure 2 Location Map).

Field Work Update

Ongoing expansion of 1:500 scale geological mapping and rock-saw channel sampling across the growing Cascabel porphyry field has led to another discovery of porphyry copper-gold mineralization in outcrop, along the northern and southern slopes of the newly discovered Alpala South prospect, which lies 400m due south of Hole 5 at Alpala Central (Figure 3). The extent of outcropping mineralisation at Alpala South and Hematite Hill has not yet been defined, as mapping continues over the ridges that separate Alpala Central and Alpala Southeast (Figure 4).

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SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: [email protected]Website: www.solgold.com.au Street address: Level 27, 111 Eagle Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001

The prospective centres at Alpala South and Hematite Hill occur within an area of elevated magnetic response within part of the complex magnetic signature that occurs over the wider Alpala area, known as the Alpala Magnetic Complex (Figure 5).

These new prospects occur along either side of the south-eastern extension of the Alpala Structural Zone ("ASZ"). The ASZ is a deep seated regional north‐west trending structure inferred to be a zone of crustal weakness tapping into copper and gold rich intrusions at Alpala Central.

The presence of a discrete copper / zinc soil anomaly, supports a preserved porphyry centre characterised by higher temperatures of mineralisation. This geochemical signature is typical of the metal zonation around many global porphyry copper‐gold deposits. The occurrences of more distinct copper / zinc anomalies further south of Alpala South, and at Alpala South-east are priority areas for the ongoing reconnaissance field inspection (Figure 6).

The outcrops at Alpala South contain porphyry style quartz-iron oxide veins, the fresh sulphides having been leached or oxidised from the weathering environment. The veining occurs within volcanic host rocks in a sheeted form, with veins orientated along a west-north-west trend, and dipping steeply towards the north-north-east (Figures 7).

The Alpala South discovery, like the recent finds of outcropping copper and gold mineralization at Aguinaga and Trivinio, highlights the fertility and potential of the broader porphyry copper-gold system at Cascabel. Mineralised surface outcrops such as these that display very high vein density, up to 10% of the total rock mass, and in such close proximity to the vertically extensive high grade copper and gold mineralization discovered at Alpala, make for certain drill targets.

The discovery of new outcrops around Alpala is becoming increasingly numerous and detailed. 1:500 scale "Anaconda" style surface mapping has now been completed over a surface extent of around 1.1 square kilometres. The frequency of discovery of new mineralised outcrops of porphyry style mineralisation at Cascabel endorses the importance of this system as a globally significant discovery.

A video presentation regarding the Alpala South target will be available today on the Company's website (www.solgold.com.au) and via BRR Media.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Mather consents to the inclusion of the information in the form and context in which it appears.

By order of the Board Karl Schlobohm Company Secretary

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SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: [email protected]Website: www.solgold.com.au Street address: Level 27, 111 Eagle Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001

Figure 1: Regional Setting of the Cascabel Project, in the northern Andean Copper Belt.

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   SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: [email protected]Website: www.solgold.com.au Street address: Level 27, 111 Eagle Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001

   
   

   Figure 2: Location of Cascabel project in northern Ecuador,

   
   

   
   

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SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: [email protected]Website: www.solgold.com.au Street address: Level 27, 111 Eagle Street, Brisbane QLD 4000 Australia Postal address: GPO Box 5261, Brisbane QLD 4001