Abzu Gold Announces the Signing of its $2.5 Million Strategic Investment Proposal

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Abzu Gold Ltd. (TSX VENTURE:ABS)(OTCQX:ABZUF) ("Abzu" or the "Company")
announces that, further to its news releases of September 27, 2012, September
18, 2012 and July 23, 2012, it has signed a definitive share purchase agreement
("SPA") with Stonehouse Construction Pte Ltd. ("SHC"). The terms of the SPA have
been modified from the terms of the strategic investment proposal disclosed in
the Company's July 23, 2012 news release.


Pursuant to the SPA and subject to certain conditions precedent including TSX
Venture Exchange and shareholder approval, SHC or SHC and affiliated persons
will purchase 22,727,273 units (the "Units") of Abzu at $0.11 per Unit. Each
Unit will consist of one common share and one common share purchase warrant,
with each warrant exercisable into an additional common share for a period of 12
months from the date of closing at $0.125 per share. All securities issued will
be subject to a standard four month hold period. The proceeds from SHC's
investment will be used by the Company for the advancement of the Company's
Nangodi Project in Ghana, and for general corporate purposes.


Pursuant to the SPA the parties have agreed that SHC will assume operational
management of Abzu's Nangodi project, which Abzu is earning an interest in
pursuant to an option agreement with Kinross Gold.


All other terms of the SPA are the same as previously announced on July 23, 2012.

Tim McCutcheon, CEO, states: "With the combined SHC investment and concurrent
private placement we intend to close on $3 million, our original target for this
financing. Market conditions have been extremely challenging, and I am glad to
report that despite this, Abzu's team has been able to raise the necessary funds
to advance the Company."


On behalf of the board of directors of ABZU GOLD LTD.

Tim McCutcheon, Chief Executive Officer