Continental Gold Drills 10.0 Metres of 28.26 g/t Gold & 364 g/t Silver and 7.5 Metres of 39.15 g/t Gold and 44 g/t Silver in the Veta Sur Vein System and 3.3 Metres of 95.26 g/t Gold...

...and 23 g/t Silver in the Yaragua Vein System, Buritica Project, Colombia

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2011) - Continental Gold Limited ("Continental" or the "Company") (TSX:CNL)(OTCBB:CGOOF) is pleased to announce results from fourteen diamond drill-holes from the Company's 2010 program at its Buriticá gold project in Antioquia, Colombia. To date, 47,000 metres of diamond drilling has been completed on the property and eight drills are currently working on a 60,000-metre surface and underground 2011 drill program.

Highlights

• Significant intercepts in the Veta Sur package include:
  10.0m @ 28.26 g/t Au and 364.6 g/t Ag in hole BUSY-118, 7.5m @ 39.15 g/t Au and 44.8 g/t Ag in BUSY-122, 2.74m @ 48.11 g/t Au and 435.3 g/t Ag in BUSY-117 and 1.20m @ 150.95 g/t Au and 15 g/t Ag in BUSY-107.
  
  
  • BUSY-107 and BUSY-122 appear to have demonstrated two new high grade gold subzones. BUSY-117, BUSY-118 and other holes continued to delineate high grade silver in Veta Sur
    
    
• Highlights of drilling in the Yaragua vein system include:
  3.30m @ 95.26 g/t Au and 23.7 g/t Ag in BUUY-53, 2.60m @ 43.65 g/t Au and 33.5 g/t Ag in BUSY-108 and 3.20m @ 34.48 g/t Au and 21.4 g/t Ag in BUSY-105.
  
  
  • These and other Yaragua drill-holes include newly recognized vein sets and demonstrate the grade continuity of several of the veins in the west part of the Yaragua System.
    
    
• 28.5m @ 3.82 g/t Au and 1.49% Zn in BUUY-53 was drilled in the Yaragua breccia, results which are similar to other drill holes and underground crosscuts from 2008-2010. This result further underlines the potential of the Yaragua breccia as an underground bulk mineable body.

Details

Continental's 100%-owned, 18,000-hectare Buriticá project has several known areas of high-grade vein mineralization. The two best explored of these areas include the Yaragua sytem which has been drill tested along 550 metres of strike and 600 vertical metres, and the Veta Sur system which has been drill tested along 400 metres of strike and 350 vertical metres. Both systems remain open at depth along strike to the west.

Veta Sur System

Seven new drill-holes (Table 1) confirm the continuity of high grades on multiple veins in the central 250 strike metres of the Veta Sur system (Figure 1), which occupy a 60-metre wide corridor.

BUSY-107 and BUSY-122 appear to have demonstrated two new high grade subzones, spatially separated from other +100g/t gold intercepts (Figure 2) but with similar Stage II mineralization characteristics (see Company press release on November 24, 2010).

BUSY-117 and BUSY-118 exhibit high grade silver intercepts in addition to high grade gold and BUSY-97, BUSY-133 have high silver/gold. Based on interpretation of earlier Veta Sur drilling results and soil geochemistry results in the southern part of the property, it is possible that silver may contribute significantly to the value of mineralization in parts of the Veta Sur system, especially to the south in the La Estera soil geochemical anomaly, which will see initial drill testing in short order.

Yaragua System

Highlights of the current Yaragua drilling results are summarized in Table 2 and Figure 1. As is typical of the Yaragua corridor, multiple veins were intersected in every hole. Nine individual intercepts of over 20 g/t Au and initial correlations with currently modeled veins are noted in Table 2.

BUSY-101 and BUSY-108 both intersected high grade veins which appear to correlate and are north of Vein A, the most northerly of the currently modeled Yaragua veins.

Intersections in BUUY-52 and BUUY-53 further clarify the Yaragua system in the west. The 3.30m @ 95.26 g/t Au intersected in BUUY-53 may correlate with the high grade intercepts reported in the December 21, 2010 press release (3.5m @ 76.72 g/t Au and 2.7m @ 60.53 g/t Au in holes BUUY-48 and 51 respectively). The very high grade intercept (0.5m @ 261.21g/t gold) in BUUY-53 appears to be a new vein.

BUSY-105 demonstrates continuity of several veins to the west of the Diatreme Fault zone. The new vein set recognized in this drill-hole appears to correlate with the vein set deep in BUUY-52.

Hole BUSY-53 also intersected 28.5m @ 3.82 g/t Au with 1.49% Zn in the Yaragua breccia. Numerous other similar breccia intercepts have been cut in the western part of the Yaragua area during drilling and underground channel sampling in 2008-2010 (see Continental Gold website). Mineralization in the breccia is generally dominated by the Phase 1 gold-base metal assemblage. The pyrite, sphalerite, native gold mineralization occurs as short, discontinuous fractures, rims on breccia fragments, and disseminations in the breccia matrix. Drilling will continue to test the breccia with the aim of delineating an economic bulk underground deposit.

2011 Drill Program

The 2011 drill program is well underway with eight drills currently working on the property. Surface drilling will dominate during the first half of the year with emphasis on finishing the infill programs on Veta Sur and Yaragua at 25-metre centers along with step-out drilling on both zones. Two of the eight drills are being dedicated to testing new targets defined by soil sampling (see Press Release of August 9, 2010). Some geotechnical holes are also being drilled along the route of the planned one-kilometre tunnel at the 1200-metre elevation which will connect the ore bodies with the Naranjo Valley, site of the future plant and metallurgical facilities.

Current underground development work is creating access for deeper underground drilling during the second half of the year. Drill platforms on Level 3 in the Yaragua Mine will be located 100 metres below the deepest existing drill collars and will allow testing of the Yaragua zone down to the 1000-metre elevation, a total of more than 700 vertical metres.

Technical Information

The results of the Company's drilling program have been reviewed, verified and compiled by Vice President Exploration, Stuart Moller P.Geol., a qualified person for the purpose of NI 43-101. Mr. Moller has over 30 years of mineral exploration experience and is a Licensed Professional Geologist in the Province of British Colombia and a Fellow of the Society of Exploration Geologists.

The company utilizes an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one half shipped to a sample preparation lab in Medellín run by SGS Colombia. Samples are then shipped for analysis to SGS 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 laboratories in Vancouver and/or Inspectorate Labs in Reno.

About Continental Gold Limited

Continental Gold Limited is an advanced-stage exploration company with eight gold projects covering approximately 166,207 hectares in Colombia. Spearheaded by a management team with over 40 years of exploration and mining experience in South America, the Company has begun an aggressive exploration program on its extensive portfolio of properties with a focus on its flagship high-grade gold project, Buriticá and the highly prospective Berlin gold project. Additional details on the Buriticá project and the rest of Continental Gold's suite of gold exploration properties is available at www.ContinentalGold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information, including statements regarding the expected listing date of the Warrants 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.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. Plan View of New Drilling, please visit the following link: http://media3.marketwire.com/docs/cnl0216fig1.pdf.

To view Figure 2. Veta Sur System Longitudinal Section, please visit the following link: http://media3.marketwire.com/docs/cnl0216fig2.pdf.

For more information, please contact