Continental Gold Provides a Corporate and Development Update for the Buritica Project, Colombia

Editors Note: There are two graphics associated with this press release.

Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company")
is pleased to announce that it has begun mobilizing equipment at the Veta Sur
Ramp after being granted an ancillary amendment to its current environmental
permit on May 22, 2014 from Corantioquia, the autonomous regional corporation
responsible for issuing and controlling environmental permits in Antioquia. At
an elevation of approximately 1,550 metres above sea level, the Company's
underground development plan now includes a 400-metre cross-cut off of the Veta
Sur Ramp, transecting the entire Veta Sur vein package as well as drifting along
certain veins from the cross-cut (Figure 1). The Company plans to utilize its
own fleet of mining equipment on the Veta Sur Ramp development, thereby reducing
the overall cost per metre. Cross-cut development is expected to ensue within
the next 30 days.


In addition, the Higabra Valley Tunnel, which is located at elevations between
1,150-1,200 metres, has approximately 175 metres of development remaining and is
expected to be completed within two months (Figure 2). In similar fashion to the
Veta Sur Ramp, planning is now underway for development off of the Higabra
Valley Tunnel, including both a cross-cut through the western Yaragua veins and
drifting along veins at both the Yaragua and Veta Sur systems. Further details
will be provided once the Higabra Valley Tunnel is completed and necessary
approvals are in place. 


There are currently two diamond rigs operating from drilling chambers within the
Higabra Valley Tunnel targeting the eastern part of the Yaragua system, and an
additional three rigs are expected to be mobilized between July and September
2014. Drilling from the Higabra Valley Tunnel is expected to transect the
Yaragua and northeastern Veta Sur vein systems at flat and up angles in order to
convert and add new measured and indicated ("M&I") ounces between elevations of
1,200-1,400 metres. The Higabra Valley Tunnel is intended to serve as the main
access line from the current proposed mine to the processing facilities in the
Higabra Valley, making it crucial for the Company to add M&I ounces at these
elevations, as these ounces are currently intended to be mined at the beginning
of current proposed operations. Once drilling at these elevations is complete,
the Company intends to focus on infilling and extending mineralization between
elevations of 800-1,200 metres, where relatively sparse drilling in this
elevation range has encountered both high grade and apparently thick intercepts
in both the Yaragua and Veta Sur vein systems. A production decision has not yet
been made.


"Cross-cutting and drifting along veins at various elevations in both the
Yaragua and Veta Sur systems will provide the Company with an excellent
underground platform to continue to improve its understanding of vein geometries
and begin trial mining scenarios in early 2015," commented Ari Sussman, CEO of
Continental Gold. "With nine drill rigs currently turning and three more on the
way, we expect to have an exciting second half of 2014."


Other Business

The Company also announces that Jaime I. Gutierrez has resigned from the Board
of Directors for personal reasons, effective immediately. "I would like to thank
Jaime for his personal contributions made over the years as one of the founding
directors of Continental and we wish him success in the future," commented Leon
Teicher, Chairman of the Board.


About Continental:

Continental Gold Limited is an advanced-stage exploration and development
company with an extensive portfolio of 100%-owned gold projects in Colombia.
Spearheaded by a team with over 40 years of exploration and mining experience in
Colombia, the Company is focused on advancing its high-grade Buritica gold
project to production.


The scientific and technical information contained in this press release has
been reviewed and approved by Mark Moseley-Williams, President and Chief
Operating Officer of the Company, who is a qualified person within the meaning
of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.


The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is
sawn or split with one-half shipped to a sample preparation lab in Medellin run
by ALS Colombia Limited ("ALS") in Colombia. Samples are then shipped for
analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of
the core is stored in a secured storage facility for future assay verification.
Blanks, duplicates and certified reference standards are inserted into the
sample stream to monitor laboratory performance and a portion of the samples are
periodically check assayed at ACME Analytical Laboratories in Vancouver, British
Columbia and/or Inspectorate America Corp. in Reno, Nevada.


For additional technical information on the Buritica project, please refer to
the technical report entitled "2012 Mineral Resource Estimate of the Buritica
Gold Project, Colombia" dated November 15, 2012, effective as at October 22,
2012, available on SEDAR at www.sedar.com, on the OTCQX(R) at www.otcmarkets.com
and on the Company website at www.continentalgold.com.


Forward-Looking Statements 

This press release contains or refers to forward-looking information under
Canadian securities legislation, including statements regarding the estimation
of mineral resources, exploration drilling and results, potential
mineralization, exploration, development and mining plans, and timing of the
commencement of construction and operations, and is based on current
expectations that involve a number of business risks and uncertainties.
Forward-looking statements are subject to significant risks and uncertainties,
and other factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on forward-looking
statements. Factors that could cause actual results to differ materially from
any forward-looking statement include, but are not limited to, failure to
convert estimated mineral resources to reserves, the receipt of positive
stickers that result in a production decision being made, capital and operating
costs varying significantly from estimates, the preliminary nature of
metallurgical test results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political risks,
uncertainties relating to the availability and costs of financing needed in the
future, changes in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of projects and the
other risks involved in the mineral exploration and development industry
forward-looking statements are subject to significant risks and uncertainties,
and other factors that could cause actual results to differ materially from
expected results. These forward-looking statements are made as of the date
hereof and the Company assumes no responsibility to update them or revise them
to reflect new events or circumstances other than as required by law.


To view Figure 1: Long Section of Development Plans and Proposed Infrastructure,
please visit the following link:
www.marketwire.com/library/20140603-cgoof0604fig1.jpg.


To view Figure 2: Higabra Valley Tunnel: Planned Drill and Development Program,
please visit the following link:
www.marketwire.com/library/20140603-cgoof0604fig2.jpg.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Continental Gold Limited
+1.416.583.5610
[e-mail]
www.continentalgold.com