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TORONTO, ONTARIO -- (Marketwire) -- 11/23/11 -- Continental Gold Limited ("Continental" or the "Company") (TSX:CNL) is pleased to announce results for the first two diamond drill-holes from the Company's deep drilling program of the Veta Sur system at its Buritica project (the "Buritica Project") in Antioquia, Colombia. Over 90,000 metres of diamond drilling have been completed on the property to date and ten drills are currently on schedule to complete approximately 100,000 metres of surface and underground drilling by the end of 2011.

Highlights

--  BUSY210 and BUSY221, drilled deep into the Veta Sur system (Figures 1
    and 2), have demonstrated high grade gold-silver mineralization over
    vertical extents of up to 1,180 metres, and to more than 600 metres
    below the maiden National Instrument 43-101 ("NI 43-101") compliant
    resource model.  

--  All mineralized intercepts in BUSY221 are outside of the current
    resource model and significantly expand the resource potential of the
    Veta Sur system. High-grade gold and/or silver mineralization was
    encountered through 1,180 vertical metres and 350 metres of horizontal
    strike length with major intercepts including: 
    --  10.2 m @ 83.8 g/t Gold and 285 g/t Silver, including 4.25 m @ 187.1
        g/t Gold and 627 g/t Silver 
    --  9.8 m @ 9.1 g/t Gold and 8 g/t Silver, including 0.4 m @ 56 g/t Gold
        and 32 g/t Silver and 1.15 m @ 38.2 g/t Gold and 13 g/t Silver 
    --  3.3 m @ 20.2 g/t Gold and 46 g/t Silver 
    --  12.0 m @ 11.8 g/t Gold and 16 g/t Silver, including 0.4 m @ 100.3
        g/t Gold and 216 g/t Silver plus 3 m @ 21.5 g/t Gold and 3 g/t
        Silver 

--  BUSY210 extended the strike length of the Veta Sur system to over 500
    metres and remains open to the southwest, northeast and at depth.
    Significant intercepts outside of the current resource model include: 
    --  4.1 m @ 25.1 g/t Gold, 40 g/t Silver and 1.2% Zinc, including 0.5 m
        @ 167.6 g/t Gold, 264 g/t Silver and 7.2% Zinc 
    --  6.0 m @ 7.8 g/t Gold and 37 g/t Silver, including 2.05 m @ 17 g/t
        Gold and 81 g/t Silver 
    --  1.2 m @ 20.9 g/t Gold and 9 g/t Silver 

Significant BUSY210 intercepts within the current resource model include:

    --  8.0 m @ 9.3 g/t Gold and 17 g/t Silver, including 1.4 m @ 33.2 g/t
        Gold and 43 g/t Silver 
    --  2.0 m @ 20.2 g/t Gold and 16 g/t Silver 
    --  6.1 m @ 8.3 g/t Gold and 19 g/t Silver, including 2.5 m @ 14.9 g/t
        Gold and 30 g/t Silver 
--  Together, the two deep drill-holes significantly increase the resource
    potential of the Veta Sur system and will be followed up with additional
    deep drilling. 

"Continental is at an exciting point in our path towards production in 2014. BUSY210 and BUSY221 have validated our exploration model for Buritica and we are looking forward to continued expansion of our high-grade mineralized footprint," commented Ari Sussman, CEO. "2012 is going to be an exciting year for the Company as we focus on both definition and expansion drilling of the Veta Sur and Yaragua systems as well as exploratory drilling of at least four new geochemical targets."

Details

Continental's 100%-owned, 29,329-hectare Buritica Project contains several known areas of high-grade gold and silver mineralization, of base metal-carbonate style mineralization ("Stage I") variably overprinted by texturally and chemically distinctive high-grade "Stage II" mineralization. The two most extensively explored of these areas, the Yaragua system and the Veta Sur system (Figure 1), are central to this land package. The Yaragua System has been drill-outlined along 570 metres of strike and 600 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 500 metres of strike and over 1,180 vertical metres. Both systems are characterized by multiple steeply dipping veins and broader more disseminated mineralization and both remain open at depth and along strike at high grades. Continental recently issued a NI 43-101 compliant maiden resource estimate for parts of the Yaragua and Veta Sur systems. See "Technical Information" below.

Two deep diamond drill-holes, BUSY210 and BUSY221, have been completed in the Veta Sur system, the first holes in a drilling program to clarify the resource potential of the Buritica Project well below the current NI 43-101 compliant resource estimate. Because of the lack of access to appropriate drill pad locations around central Veta Sur, the holes were drilled obliquely through the northern Veta Sur system from the northeast (Figure 1), resulting in testing of considerable strike lengths of the mineralization as well as its depth extents.

Both BUSY210 and BUSY221 intersected multiple zones of high-grade gold-silver mineralization including the deepest intersections made to date in the Buritica Project. Significant drill intercepts are tabulated below.

Table I                                                                     
                                                                            
---------------------------------------------------------------------------
              From        To Interval(i)       Au       Ag       Zn      RL
BUSY221        (m)       (m)         (m)    (g/t)    (g/t)    (ppm)     (m)
---------------------------------------------------------------------------
             42.00     43.00        1.00    12.14      8.7     7005    1721
             94.50     96.00        1.50     3.89     21.0    23000    1670
            199.60    200.00        0.40     4.82    114.0      291    1572
            210.00    211.00        1.00    12.16     54.0      406    1560
            401.00    402.50        1.50     2.40    385.0     6621    1379
            418.35    418.80        0.45     4.68     44.0      235    1362
            437.00    441.50        4.50     2.29     15.7      386    1343
            463.00    468.50        5.50     1.27    178.0     1346    1317
            487.00    488.00        1.00    17.10     19.0      147    1297
            585.20    586.70        1.50     4.52      7.8      783    1204
            608.25    611.15        2.90     3.45     16.1      841    1181
            663.60    665.10        1.50    37.53     55.0      334    1130
            793.70    794.20        0.50    18.87      8.0      164    1007
            800.85    801.30        0.45    17.63     13.0     1018    1000
            830.50    840.70       10.20    83.84    285.0     1408     970
incl        831.40    835.65        4.25   187.06    627.0     2616     969
            847.50    858.30        9.80     9.06      8.0      112     963
incl        848.60    849.00        0.40    56.04     32.0      174     956
            856.25    857.40        1.15    38.21     12.9      122     952
            861.25    864.55        3.30    20.24    45.80      198     942
            915.50     930.6       15.10     2.79      7.9      416     892
incl        916.10    917.50        1.40    16.65     16.4     1094     893
            942.00    954.00       12.00    11.84     16.0     1471     884
incl        945.60    946.00        0.40   100.30    216.0    28800     863
            951.00    954.00        3.00    21.46      3.2      143     857
           1159.00   1159.50        0.50    28.78     29.0     6639     659
           1170.50   1171.70        1.20     5.13     13.0     1173     647
           1215.00   1215.40        0.40     9.96     36.0    10500     606
---------------------------------------------------------------------------
                                                                            
(i) Intercepts calculated at 1 g/t Au + 0.03 g/t Ag cut-off grade, less than
20% internal dilution. True thicknesses not accurately known.               
                                                                            
Table I continued                                                           
                                                                            
----------------------------------------------------------------------------
              From        To Interval(i)       Au       Ag       Zn       RL
BUSY210        (m)       (m)         (m)    (g/t)    (g/t)    (ppm)      (m)
----------------------------------------------------------------------------
             95.30     96.80        1.50     7.99      8.1     1569     1675
            165.80    171.20        5.40     3.03      4.8      726     1607
            192.00    195.85        3.85     2.39     51.7      400     1585
            342.00    345.00        3.00     2.16      6.0      986     1453
            351.00    361.55       10.55     2.43     21.3      678     1444
            366.40    372.60        6.20     2.69     28.2      226     1430
            390.00    398.00        8.00     9.30     17.3      260     1411
incl        394.60    396.00        1.40    33.15     42.7      307     1407
            402.00    404.00        2.00    20.19     16.0      422     1400
            408.00    414.10        6.10     8.29     18.6     1205     1395
incl        411.60    414.10        2.50    14.94     30.4     1816     1392
            427.60    428.00        0.40    10.02     28.0      397     1378
            452.00    453.90        1.90     3.90      8.3      212     1357
            461.00    462.00        1.00     5.97      7.9     4859     1349
            480.80    484.90        4.10    25.10     40.0    12000     1333
incl        480.80    481.30        0.50    35.11     47.0    23400     1333
incl        484.40    484.90        0.50   167.64    264.0    72300     1330
            519.65    521.50        1.85     3.71      4.6      553     1300
            569.00    569.90        0.90    18.16     64.0     1608     1258
            606.50    607.00        0.50     5.21     17.0      547     1227
            838.70    839.20        0.50     8.64      4.4       90     1033
            847.50    848.50        1.00     6.92     23.0      170     1026
            864.00    865.50        1.50    14.12      2.6       78     1013
            870.00    879.50        9.50     1.83      4.3       77     1008
            892.50    898.50        6.00     7.79     36.6      923      990
incl        893.35    895.40        2.05    17.01     80.7     1688      989
            904.50    905.70        1.20    20.88      9.2       61      979
            937.30    939.30        2.00     7.00      5.8       57      953
           1025.00   1025.50        0.50    16.31     13.0      140      881
           1057.00   1064.40        7.40     3.42     25.9     4232      855
           1070.20   1071.00        0.80     9.58      6.1     6927      845
           1075.50   1077.55        2.05     2.89      4.0      125      840
----------------------------------------------------------------------------
                                                                            
(i) Intercepts calculated at 1 g/t Au + 0.03 g/t Ag cut-off grade, less than
20% internal dilution. True thicknesses not accurately known.               

BUSY221 intersected high-grade gold and silver mineralization to 1,180 vertical metres and 350 metres of horizontal strike length (Table I, Figures 1 and 2). The long intercepts from 830.50 metres downhole (10.20 m @ 83.8 g/t Gold, 285 g/t Silver) and also from 942 metres downhole (12 m @ 11.8 g/t Gold and 16 g/t Silver) are respectively 250 metres and 330 metres deeper than any previously-announced Veta Sur major drill intercepts and include ultra-high-grade intervals (Table I). However, additional intersections of high-grade gold mineralization were made down to RLs between 659 m (0.5 m @28.8 g/t Gold, 29 g/t Silver) and 606 metres, the deepest yet encountered in the Buritica Project. These intercepts demonstrate that gold-silver mineralization in the Veta Sur system continues to more than 1,180 vertical metres and still remains open to depth.

All mineralized intercepts in BUSY221 are outside of the current NI 43-101 compliant resource model. The deepest intercepts are more than 600 metres deeper than the lowest blocks in the NI 43-101 compliant resource model (Figure 2) The shallower intercepts in BUSY221 (RLs between 1,721 and 1,300 metres) may also contribute to extension of modeled veins into the related areas in northeast Veta Sur. Overall, the results of BUSY221 significantly expand the gold-silver resource potential of northern Veta Sur.

BUSY210, drilled on a more southerly azimuth and shallower inclination than BUSY221, encountered gold-silver mineralization through 830 vertical metres and 500 metres of horizontal strike length (Table I, Figures 1 and 2). Intercepts below 1,340 metres RL are outside the current NI 43-101 compliant resource model, with the deepest intercepts extending the Veta Sur system to 830 metres RL (1,000 metres below surface) in the southwest and increasing the strike length of the system to over 500 metres. The Veta Sur system remains open along strike to the southwest and northeast. All of the mineralization intersected by BUSY210 outside the current resource model remains open at depth. It is noteworthy that high grade intercepts outside the resource model exhibit both high (eg. from 484.4 metres downhole, 0.5 m @ 167.6 g/t Gold, 264 g/t Silver, 7.2% Zinc) and low base metal contents (eg. from 892.5 metres downhole, 6.0 m @ 7.8 g/t Gold, 37 g/t Silver, 0.9% Zinc, including 2.05 m @ 17.1 g/t Gold, 81 g/t Silver and 1.7% Zinc). Overall, the results of BUSY210 significantly expand the gold-silver resource potential of Veta Sur, particularly in the southwest of the system to depth.

Between RLs of 1,620 and 1,340 metres, gold-silver mineralization encountered by BUSY210 is within the current resource model. Significant intercepts (eg. from 390 metres downhole, 8.0 m @ 9.3 g/t Gold, 17 g/t Silver, including 1.4 m @ 33.2 g/t Gold, 43 g/t Silver; from 408 metres downhole, 6.1 m @ 8.3 g/t Gold, 19 g/t Silver including 2.5 m @ 14.9 g/t Gold, 30 g/t Silver) generally correlate well with modeled veins, adding further confidence to the NI 43-101 compliant resource model.

A third drill-hole at Veta Sur was abandoned due to drilling conditions and is expected to be re-drilled shortly. The deep-drilling rig has already commenced on the first of three exploratory diamond drill-holes to test the depth potential of the Yaragua system. In addition, a second special-purpose deep-drilling rig has been sourced and is expected to arrive at site shortly. The Company is currently constructing an exploration access road, which when constructed, will allow better access to drill both the Veta Sur and Yaragua systems at depths below the current NI 43-101 compliant resource model as well as to test new targets such as the La Mano and La Estera geochemical anomalies to the south.

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

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 Medellin run by SGS Colombia. 100% of BQ diameter drill samples are shipped. 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, Canada and/or Inspectorate Labs in Reno, Nevada.

For additional technical information on the Buritica Project, please refer to the Company's technical report (the "Technical Report") entitled "Mineral Resource Estimate of the Buritica Gold Project, Colombia" dated October 24, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com and on the Company website at www.continentalgold.com.

About Continental Gold Limited

Continental Gold Limited (TSX:CNL) 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 in 2014. A maiden NI 43-101 compliant resource estimate for the Buritica Project covering two major vein systems is included in the Technical Report, with combined measured and indicated resources of 630,000 ounces of gold at 17.8 g/t, 1,500,000 ounces of silver at 42 g/t and 18,700,000 pounds of zinc at 0.8% as well as combined inferred resources of 2,500,000 ounces of gold at 11.4 g/t, 9,500,000 ounces of silver at 43 g/t and 88,000,000 pounds of zinc at 0.6%. With a goal of being the first modern day gold producer in Colombia, Continental will commence construction of an underground ramp in Q2 2012, initially providing access for underground drilling and eventually used for commercial production in 2014. A 100,000-metre drill program is also near completion at the Buritica Project to further delineate the resource and drill new target zones identified within its concession. Additional details on the Buritica Project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements" under Canadian securities legislation. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements, and includes, but is not limited to, statements with respect to the Buritica Project, estimates of concentration of mineralization, mineral resource quantities, mineral resource qualities, the potential scope and context of the mineralized area, the potential for upgrading the mineral resource estimate, the Company's exploration and drilling targets, goals, objectives and plans, and other statements relating to the financial and business prospects of the Company.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "is projected", "anticipates" or "does not anticipate", "believes", "targets" or variations of such words and phrases. Forward-looking information may also be identified in statements where certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking information is inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in or implied by the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: failure to establish estimated mineral resources; the grade, quality, concentration and recovery of mineral resources varying from estimates; risks related to the exploration stage of the Company's properties; the possibility that future exploration results will not be consistent with the Company's expectations (including identifying additional and/or deeper mineralization); changes in the price of gold; changes in equity markets; political developments in Colombia; uncertainties relating to the availability and costs of financing needed in the future; changes to regulations affecting the Company's activities; delays in obtaining or failures to obtain required regulatory approvals; the uncertainties involved in interpreting drilling and exploration results and other geological data and other factors (including exploration, development and operating risks); management's assessment of future plans for the Buritica Project; management's economic outlook regarding future trends; the availability of skilled labour; estimates with respect to the mineralization at the Company's projects; as well as those further discussed in the section entitled "Description of the Business: Risks of the Business" in the Company's Revised Initial Annual Information Form and other regulatory filings which are filed on SEDAR at www.sedar.com.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be placed on such statements due to the inherent uncertainty therein.

To view Figure 1 - Plan View of New Drilling, please visit the following link: http://media3.marketwire.com/docs/cnl1122-1.pdf

To view Figure 2 - Longitudinal Section of Veta Sur, please visit the following link: http://media3.marketwire.com/docs/cnl1122-2.pdf

Contacts:
Continental Gold Limited
Paul Begin
Chief Financial Officer
+1.416.583.5610
[email protected]
www.continentalgold.com