Bandera Gold Provides Legal Update on Cinco Minas and Gran Cabrera Properties

Edmonton, AB, September 5, 2013-Bandera Gold Ltd ("Bandera" or the "Company") (TSXV:BGL) is pleased to provide this update on the Cinco Minas and Gran Cabrera Mexican Mining Properties (the "Properties").

Our March 22, 2013 news release provided a status update in which we summarized our ongoing efforts in the mercantile lawsuit.

On August 12, 2013, in regards Bandera's Amparo, the 3rd District Federal court was ordered by the Amparo court to issue a ruling. This ensures that all of the evidence previously presented remains intact for consideration in the final ruling.

On August 26, 2013, as was expected, the defendants (MSJ and Minera Amajac) filed a Revision Remedy against this ruling.

Bandera is continuing to litigate the case and pursue its legal remedies, and it is confident that the appropriate Mexican courts will ultimately ratify and uphold what was decided in the First Instance Ruling.

Once the litigation has been completed and Bandera receives its interest in the Properties, Bandera will proceed with the following:

1. 1.Complete an updated NI 43-101 Technical Report on the Properties which will include a new development plan;

2. 2.Re-establish relationships with the local Cinco Minas community; and

3. 3.Secure financing for the development plan.

On Behalf of the Board

Stephen Roehrig

President and CEO

For further information please contact:

Stephen Roehrig, President and CEO [phone]

Web: www.banderagold.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Information provided herein contains forward--looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward--looking statements. The outcome of any regulatory or legal proceedings, including any criminal or civil matters, is uncertain, and Bandera makes no assurances in that regard.