Batero Gold Announces Preliminary Economic Assessment for the Batero-Quinchia Gold Project

Batero Gold Corp. (Batero, or the Company) (TSX VENTURE:BAT) reports the results
of an updated Mineral Resource estimate and a Preliminary Economic Assessment
(PEA) at its 100% owned Batero-Quinchia project (the Project) in Riseralda,
Colombia. The updated Mineral Resource estimate and PEA were prepared by RPA
Inc. (RPA) and include drill hole data available as of October 2012, and
metallurgical testwork data available as of March 2013. A National Instrument
43-101 Standards of Disclosure for Mineral Projects (NI 43-101) technical report
summarizing the PEA (the "Technical Report") is being completed by RPA, and will
be filed on SEDAR within 45 days of this news release. The Technical Report will
also be available on the Batero website.


PEA Highlights 

The PEA evaluates the economics of an open pit contract mining and heap leach
processing scenario that takes advantage of the relatively high gold recoveries
and fast leach kinetics of the surface oxide mineralization within the
Batero-Quinchia deposit. Higher grade, near surface mixed and primary
mineralization within the oxide pit footprint are also mined. 


Highlights from the PEA, with a base case gold price of US$1,400/oz are as
follows (all figures are in U.S. dollars unless otherwise stated):




--  Mine life of seven years at 3.5 million tonnes per annum production
    steady state (10,000 tonnes per day). 
--  Life-of-Mine (LoM) gold production of 390,000 ounces of gold and 817,000
    ounces of silver recovered. 
--  Annual average production of 56,000 ounces of gold and 117,000 ounces of
    silver recovered. 
--  Total open pit production which has been factored for mining extraction
    and mining dilution: 
    --  9.4 Mt of Measured Mineral Resources at 0.81 g/t Au and 1.8 g/t Ag
        for 244,000 ounces of contained gold and 545,000 ounces of contained
        silver, 
    --  11.0 Mt of Indicated Mineral Resources at 0.77 g/t Au and 2.0 g/t Ag
        for 273,000 ounces of contained gold and 720,000 ounces of contained
        silver, 
    --  3.3 Mt of Inferred Mineral Resources at 0.59 g/t Au and 1.6 g/t Ag
        for 64,000 ounces of contained gold and 171,000 ounces of contained
        silver. 
--  Approximately 86% of open pit production tonnage is classified as
    Measured or Indicated Mineral Resources. 
--  Mining strip ratio of 0.3:1 (waste: production). 
--  LoM average gold and silver heap leach recoveries of 67% and 57%
    respectively. 
--  Initial capital cost of $97.3 million, which includes $16.2 million in
    contingency costs. 
--  Pre-tax payback of 23 months. 
--  Net pre-tax cashflow of $105.0 million. 
--  Pre-tax Internal Rate of Return (IRR) of 27%. 
--  Pre-tax Net Present Value (NPV) at a 5% discount rate of $69.1 million. 
--  Total cash operating cost (net of silver credits) of $842 per ounce
    gold. 
--  After-tax payback of 30 months. 
--  Net after-tax cashflow of $76.9 million. 
--  After-tax IRR of 21%. 
--  After-tax NPV at a 5% discount rate of $47.3 million. 



The PEA was prepared by RPA in accordance with the standards set out in NI
43-101. The PEA is considered preliminary in nature. It includes inferred
mineral resources that are considered too speculative to have the economic
considerations applied that would enable classification as mineral reserves.
There is no certainty that the conclusions within the PEA will be realized.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. 


Darryl Lindsay, Interim CEO of Batero Gold Corp stated, "We are pleased with the
results of the updated mineral resource, metallurgical testwork, and results of
this initial PEA for the Project. The heap leach scenario focused on near
surface mineralization presents a conservative capital cost and development
timeline while remaining consistent with the overall project strategy as a
possible first stage in a potential multiple stage development plan. The
mineralized production from the PEA is defined from less than 45 % of the
measured mineral resource and less than 15 % of the indicated mineral resource.
The PEA focuses on a conservative initial capital expense based on current
market conditions and the treasury of the Company."


Batero-Quinchia Mineral Resource Estimate 

Mineral Resources for the Project were updated using drill hole data consisting
of 176 drill holes and 35,962 assays available as of October 2012. The drill
hole spacing varies considerably over the property and ranges from less than 30
m to over 200 m. At La Cumbre, the drill holes are generally spaced
approximately 50 m apart with some areas defined by even closer spaced holes.
The drill holes at Dos Quebradas are spaced at approximately 50 m and 100 m
spacings. The drill holes at El Centro are more irregularly and wider spaced
with spacings in the 100 m to 200 m range. Mineral Resources for the Project
were updated using metallurgical testwork data available as of March 2013, and
are presented in Table 1. The Mineral Resource estimate is reported constrained
by an open pit shell that is based on a conceptual open pit mining scenario with
grinding and cyanide leaching process to recover gold and silver. 




Table 1 - Batero-Quinchia Project Mineral Resource Estimate - Effective June
                                   27, 2013                                 
                                                                            
Category            Tonnes     Gold   Silver   Copper   Sulphur         Gold
                      (Mt)    (g/t)    (g/t)      (%)       (%)        ( oz)
----------------------------------------------------------------------------
Total Measured        26.1     0.67      1.8     0.11      1.42      565,000
Total Indicated      105.6     0.57      1.8     0.10      1.50    1,935,000
Total M+I            131.8     0.59      1.8     0.11      1.49    2,500,000
                                                                            
Total Inferred        33.5     0.50      1.6     0.06      1.23      542,000



Notes:



1.  CIM definitions were followed for Mineral Resources. 
2.  Mineral resources that are not mineral reserves do not have demonstrated
    economic viability. 
3.  Mineral Resources are estimated using a gold price of US$1,500 per
    ounce. 
4.  Gold recoveries of 85% for oxide and 75% for mixed and primary redox
    domains are used based on preliminary metallurgical test work for the
    conceptual process method. 
5.  Mineral Resources are constrained by a conceptual open pit shell and
    estimated at a 0.3 g/t Au discard cut-off grade. 
6.  Totals may not represent the sum of the parts due to rounding. 



The mineral resource estimate represents that portion of the deposit with a
reasonable prospect for economic extraction at this time using the parameters
defined by RPA.


Please see Figure 1 - 3D View Looking Northwest - Blocks Above 0.3 g/t Gold for
a three dimensional view of the mineral resources and open pit shell.


Open Pit Mining and Heap Leach Processing

The base case scenario for the Project includes open pit mining of Measured,
Indicated, and Inferred Mineral Resources with heap leach processing for
ultimate recovery of gold and silver in dore bars. Steady state production of
3.5 million tonnes per annum is achieved in the second year of production. The
mine design consists of four separate open pits. Approximately 87% of production
is from the main La Cumbre open pit, with remaining production coming from two
La Cumbre satellite pits and the Dos Quebradas pit. Backhoe excavators loading
approximate 30t payload rigid trucks are assumed for the primary production
equipment. The majority of material is assumed to be free digging or rippable,
however, it is still drilled on a regular bench grid pattern for grade control. 


A mining contractor is specified for mining operations to deliver open pit
production to the crushing and screening facility and for haulage of production
from the crushing and screening facility to the heap leach pad. On the heap
leach pad, a system of grasshopper conveyors and a radial stacker are used to
build the heap leach pad lifts. An Owner's team is designated to provide
technical services and contract management.


See Figure 2 - Isometric View of La Cumbre Open Pit Looking Northwest and Figure
3 - Isometric View of La Cumbre NE, La Cumbre NW, and Dos Quebradas Pits Looking
South for location of the proposed open pits. Please visit www.baterogold.com to
view all figures.


Metallurgical Testing and Recovery 

Metallurgical testwork undertaken by Batero for the Project was completed in
three phases by three different testing laboratories. Preliminary work was done
on six samples in 2011 by G&T Metallurgical Services Ltd. (G&T). In 2012, C. H.
Plenge & Cia. S.A. (Plenge) completed tests on seven samples. In October 2012, a
number of samples were shipped to SGS Mineral Services (SGS) in Lima, Peru,
which had been selected to perform a comprehensive metallurgical test program to
investigate variables related to heap leaching and milling. In late 2012 and
early 2013, SGS completed the following tests on 16 individual samples and four
composite samples: 




--  Bottle Roll Tests for 72 hours at nominal particle size distributions of
    100% passing 2 mm and 80% passing 75 microns. 
--  Magnetic separation tests to determine if gold may be associated with
    magnetite. 
--  Column leach tests were conducted for 30 days including duplicate tests,
    one without agglomeration and one with agglomeration, for two samples
    containing saprolite. 
--  Analysis of +200 mesh (i.e., 74 microns) and -200 mesh size fractions 
    was conducted to determine if the gold was concentrated in one of the 
    size fractions. 



The column leach tests were conducted in columns that were 150 mm diameter by
2.5 m high; material was crushed to 12 mm prior to loading. The gold and silver
recoveries and reagent consumptions for the six column tests are summarized in
Table 2.




Table 2 - Batero-Quinchia Project Summary Of SGS Column Leach Test Data (-12
                                     mm)                                    
                                                                            
                                       30-day     30-day                    
                                         Gold     Silver     NaCN,      CaO,
Test                   Description   Recovery   Recovery      kg/t      kg/t
----------------------------------------------------------------------------
Batch 2      Without Agglomeration      40.8%      51.6%      1.40      0.86
Batch 3      Without Agglomeration      79.2%      58.0%      2.17      2.36
Batch 3         With Agglomeration      79.5%      46.2%      2.49      2.36
Batch 5      Without Agglomeration      39.9%      49.0%      1.54      1.01
Batch 6      Without Agglomeration      85.5%      76.6%      2.47      1.48
Batch 6         With Agglomeration      85.8%      68.9%      3.02      1.48



In order to estimate recovery for the Project, RPA first classified the samples
using the material type domains from the resource model. Recovery data from the
bottle roll tests was compared to the recoveries achieved in the column tests
and heap leach recoveries were estimated for all of the samples tested. Table 3
presents the heap leach recoveries used in the PEA by domain.




     Table 3 - Batero-Quinchia Project - Estimated Heap Leach Recoveries    
         Material Domain            Au Recovery         Ag Recovery
         ----------------------------------------------------------
         Oxide                              83%                 60%
         Mixed                              61%                 58%
         Primary                            46%                 50%



Capital and Operating Costs

The estimated cost to construct and commission the Project is $97.3 million
including a contingency of $16.2 million. This amount includes the direct field
costs of executing the Project, plus indirect and Owner's costs associated with
design, construction, and commissioning. Cost estimates are based on the PEA
design, and are considered to have an accuracy of +/- 30%. Tables 4 and 5
present the Project's LoM capital cost summary and operating cost summary
respectively.




                Table 4 -Batero-Quinchia Capital Cost Summary               
                                                                            
                                Construction         Ongoing           Total
                                        Cost            Cost        Cost LoM
Area                          (US$ millions)  (US$ millions)  (US$ millions)
----------------------------------------------------------------------------
                                                                            
Infrastructure                          15.3             1.9            17.2
Mine                                     3.8             0.8             4.6
Process                                 38.5             2.0            40.5
                                                                            
----------------------------------------------------------------------------
Subtotal Direct Capital Cost            57.7             4.7            62.3
                                                                            
Indirect Cost                           16.9             0.0            16.9
Owner's Cost                             6.5             0.0             6.5
Contingency                             16.2             0.0            16.2
Closure                                  0.0             8.0             8.0
                                                                            
============================================================================
Total Capital Cost                      97.3            12.7           110.0
    Note: Totals may not represent the sum of the parts due to rounding.    
                                                                            
                                                                            
          Table 5 - Batero-Quinchia Project Operating Cost Summary          
                                                              Total Cost LoM
Area                               Units     LoM Unit Cost    (US$ millions)
----------------------------------------------------------------------------
Mining                       US$/t moved              3.39             101.9
Mining                  US$/t production              4.29             101.9
Processing              US$/t production              7.75             183.8
G&A                     US$/t production              1.76              41.7
----------------------------------------------------------------------------
Total Operating Cost    US$/t production             13.80             327.3
                                                                            
        Total Cash Operating Cost, Net Ag Credits    US$/oz Au  842
        Total Capital Cost                           US$/oz Au  282
        Total Cost of Production                     US$/oz Au1,124



Sensitivity Analysis

Project economics are most sensitive to changes in head grade, recovery, and
gold price. Table 6 presents a detailed sensitivity to gold price, followed by
Table 7, which summarizes the Project's sensitivity to head grade, recovery,
operating cost, capital cost, gold price, and silver price. 




         Table 6 - Batero-Quinchia Project Sensitivity to Gold Price        
               Percent       Pre-tax     Pre-tax     After-tax     After-tax
Au Price        Change           NPV         IRR           NPV           IRR
                  From          (US$                      (US$              
(US$/oz)     Base Case     millions)                 millions)              
----------------------------------------------------------------------------
                                                                            
$1,120            -20%         -10.7          0%         -14.7            0%
$1,260            -10%          29.2         16%          20.2           12%
$1,400              0%          69.1         27%          47.3           21%
$1,540             10%         108.9         37%          74.2           28%
$1,680             20%         148.8         45%         101.0           34%
                                                                            
                                                                            
           Table 7 - Batero-Quinchia Project Sensitivity Analysis           
                                                                            
Parameter Pre-tax NPV Analysis (US$ M)   -20%    -10%   Base    +10%    +20%
----------------------------------------------------------------------------
Head Grade                              -13.1    28.0   69.1   110.1   151.2
Recovery                                  8.0    38.5   69.1    99.6   130.1
Operating Cost                          117.8    93.4   69.1    44.7    20.3
Capital Cost                             88.7    78.9   69.1    59.2    49.4
Gold Price                              -10.7    29.2   69.1   108.9   148.8
Silver Price                             66.3    67.7   69.1    70.4    71.8



Notes:



1.  Base case uses US$1,400/oz gold. 
2.  Pre-tax NPV presented at a 5% discount rate. 
3.  Gold recovery sensitivity is at 57%, 62%, 67%, 72%, and 77% gold
    recovery corresponding to -20%, -10%, Base, +10%, and +20% columns
    respectively. 



Project Opportunities 

Trade-off studies that include additional exploration of the Antenna and Cumbre
Sur oxide targets are being considered. These areas were defined through 1H 2013
exploration results and are located within 200 meters of the proposed La Cumbre
open pit. The Antenna and Cumbre Sur exploration targets are outside the current
mineral resource area. 


Continue with a more extensive metallurgical testing program using a variety of
samples. Relevant to the PEA, the test program should investigate the impact of
heap leaching and vat leaching mineralization at various crush sizes as well as
the effect of leach time, solution application rate, stacking height, cyanide
concentration, and rest cycles on the overall metallurgical behavior of the
mineralization. 


Core loss through triple tube drilling in 2012 was observed as reduced in
comparison to 2011 drilling. Grade improvement was observed with reduced core
loss. Further review of core loss from 2011 drilling for grade differential to
2012 drilling is recommended.


Authors and Qualified Persons Statement 

The Mineral Resource estimate and PEA results contained in this news release
were prepared by or under the supervision of Mr. Luke Evans, M. Sc., P.Eng., of
RPA, Mr. Glen Ehasoo, P.Eng., of RPA, and Dr. Kathleen Ann Altman, Ph.D., P.E.,
of RPA, who are independent "Qualified Persons" under NI 43-101 Standards of
Disclosure for Mineral Projects. 


Darryl Lindsay, Ph.D., P.Geo., Interim Chief Executive Officer at Batero Gold is
the qualified person as defined by NI 43-101 and is responsible for the
technical information provided in this release and all future news releases. 


Batero Gold will be presenting at the Precious Metals Summit in Zurich on
November 5th. To view the presentation, please visit
http://www.gowebcasting.com/conferences/2013/11/04/precious-metals-summit.


ON BEHALF OF THE BOARD OF 

BATERO GOLD CORP.

Darryl Lindsay, Interim CEO 

Batero Gold Corporation

ABOUT BATERO GOLD 

Batero Gold Corp. is a precious and base metals exploration and development
Company. The Company is focused on two primary objectives. The first of these
objectives is the advancement of the La Cumbre oxide deposit. La Cumbre is
located within the Company's 100% owned Batero-Quinchia Gold Project, which sits
within Colombia's emerging and prolific Mid Cauca gold and copper belt. Batero
is moving the La Cumbre oxide deposit towards the goal of making a production
decision, once the appropriate level of study has been completed, and intends to
first target the near and at surface higher grade oxidized gold mineralization
at the deposit. Batero's second objective is to pursue opportunities to acquire
prospective high-grade, production focused mineral properties in Colombia and
Latin America. In pursuing both these objectives, Batero plans to leverage its
secure treasury position, strong regional relationships, experienced management
team, and long-term financial partners. Shares of the Vancouver-based company
trade on the Toronto Venture Exchange under the symbol BAT.


FORWARD-LOOKING STATEMENTS: Certain of the statements and information in this
press release constitute "forward-looking statements" or "forward-looking
information". Any statements or information that express or involve discussions
with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not always,
using words or phrases such as "expects", "anticipates", "believes", "plans",
"estimates", "intends", "targets", "goals", "forecasts", "objectives",
"potential" or variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved, or the negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward-looking statements or
information. 


Forward-looking statements or information relate to the Company's anticipated
content and cost of exploration programs, anticipated timing and results of
exploration programs, planned exploration and development programs, the
potential for a production decision to be made, the potential commencement of
any development of a mine at the Batero-Quinchia project following a production
decision, and the potential for any mining or production at the Batero-Qunichia
project. These statements relate to analysis and other information that are
based on expectations of future performance as set out in the PEA, including
gold and silver production and planned work programs. In addition, forward
looking statements relate to, among other things: developing the most efficient
and cost-effective leach processing circuit for the Cumbre gold deposit, the
timing and scope of expected diamond drilling; resource estimate grades on the
Batero-Quinchia project; scope of mineralization within the Batero-Quinchia
project; timing of receipt of permits and regulatory approvals; the sufficiency
of the Company's capital to finance the Company's operations; geological
interpretations and potential mineral recovery processes. 


Forward-looking statements or information are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause actual events or
results to differ from those reflected in the forward-looking statements or
information, including, without limitation, risks relating to: uncertainty as to
actual capital costs, operating costs, production and economic returns, and
uncertainty that development activities will result in a profitable mining
operation at the Batero-Quinchia project, fluctuations in the spot and forward
price of gold or certain other commodities; changes in national and local
government legislation, taxation, controls, regulations and political or
economic developments in Canada, Colombia or other countries in which the
Company may carry on business in the future; the uncertainties involved in
interpreting geological data; business opportunities that may be presented to,
or pursued by, the Company; operating or technical difficulties in connection
with mining activities; the speculative nature of gold exploration and
development, including the risks of obtaining necessary licenses and permits;
risks related to mineral resource estimates being based on interpretations and
assumptions which may result in less mineral production under actual conditions
than is currently estimated and to diminishing quantities or grades of mineral
resources as the Batero-Quinchia project is mined; and contests over title to
properties, particularly title to undeveloped properties. In addition, there are
risks and hazards associated with the business of gold exploration, development
and mining, including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance, or the inability to obtain insurance, to
cover these risks). 


Should one or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in the forward-looking statements or information. The Company's
forward-looking statements and information are based on beliefs, expectations,
and opinions of management on the date the statements are made. For the reasons
set forth above, investors should not place undue reliance on forward looking
statements or information. 


The information in this news release addressed the PEA, and is not intended to
be an exhaustive review of all matters or deveopments that may affect the
Company. It should be read in conjunction with all other disclosure documents of
the Company. No securities commission or other regulatory authority has reviewed
the accuracy or adequacy of the information presented in this news release. 


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.




FOR FURTHER INFORMATION PLEASE CONTACT: 
Batero Gold Corp.
604.568.6378
[e-mail]
www.baterogold.com