VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 21, 2016) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to announce that it has completed its first phase drill program at the Boticas Gold Project. Drill hole assay results have been received for 1,365 m of the completed 2,516 m program. Highlights from these initial eight drill holes included the following intercepts:

• MBT001: 49.13 m @ 1.43 g/t Au, from 20.87 m
• MBT002: 14.60 m @ 1.13 g/t Au, from 85.60 m
• MBT003: 7.90 m @ 3.40 g/t Au, from 107.00 m
• MBT005: 20.70 m @ 2.54 g/t Au, from 12.95 m
• MBT008: 59.0 m @ 1.30 g/t Au, from 12.00 m

(Significant drill hole gold intercepts were calculated using a 0.2 g/t Au cut-off grade, 0.2 g/t Au minimum composite grade, 3 m maximum internal dilution length, and 0.0 g/t Au minimum internal dilution grade. These intercepts represent apparent thickness. True thickness estimates are discussed below.)

Dan James, President of Medgold, said: "We have received the first batch of results from our drill program at Boticas. These demonstrate significant widths of up to 50 m in apparent thickness in the principal zones of mineralization which are frequently located close to surface. The 2,500 m program, which is fully funded by our partner, Centerra Gold, is now complete, with full results to follow in early January. We are currently reviewing the data with Centerra to identify areas for follow-up exploration which may include infill and deeper drilling at the main Limarinho Zone."

The Boticas-Chaves Gold Project

The Boticas-Chaves Gold Project, located in northern Portugal, covers an area of approximately 600 sq km. The project is centred on a regional ENE-trending shear zone. Local fault relays or jogs along the shear created crustal thinning / extension within discrete zones, facilitating the emplacement of mineralized quartz veinlets and veins into the granite host rock. Several of these zones were investigated by COGEMA and Kernow Resources in the late 1980s and in the mid 2000s, respectively. These companies completed a total of over 3,000 m of diamond drilling in two main zones: Limarinho and Limarinho South.

Surface mapping and the historical diamond drilling showed that gold mineralization is contained within 0.5 to 2 cm thick quartz veinlets and veins. Individual veins generally strike northeast, have vertical to sub-vertical dips, and pinch and swell vertically. They have individual horizontal lengths of generally less than 10 m, but create zones of en echelon vein sets within multiple parallel east-northeast corridors within the Limarinho zone. These corridors are up to 20 to 25 m in true thickness and can have strike lengths of hundreds of metres. Medgold's exploration targets are these corridors which feature much higher vein density than surrounding rocks.

Medgold 2016 drilling

The Company commenced drilling in late August, and completed 15 holes for 2,516 m of oriented core drilling by early December. Twelve holes were collared in the main Limarinho zone (2,060 m) and three holes (456 m) were collared in the Limarinho South zone. Assay results have been received for the first eight holes, and the remaining assays are expected by the end of the year. All drill holes intercepted mineralized veins. A drill hole collar table and a table of significant intercepts are given below:

Significant drill hole gold intercepts were calculated using a 0.2 g/t Au cut-off grade, 0.2 g/t Au minimum composite grade, 3 m maximum internal dilution length, and 0.0 g/t Au minimum internal dilution grade.

The mineralized zones are interpreted as being vertical to sub-vertical. As all of the first eight drill holes were drilled at an inclination of -55 degrees, true thicknesses are therefore expected to be approximately 55-60% of drilled apparent thicknesses. True thicknesses, given in the table above, are estimated from the horizontal thicknesses of the intercepts in drill section, assuming that mineralized zones are vertical.

Assay results are pending for the remaining seven holes and are expected in early January 2017. The full assay results for the Boticas drill program, and accompanying geological interpretations, will be released at that time.

Quality Assurance / Quality Control

Rock half-core samples were crushed and pulverised by ALS Minerals at the Seville Laboratory, Spain. Samples were analyzed for gold using 50 g fire assay with AAS analysis and multi elements were analyzed by inductively coupled plasma mass spectrometer by ALS Minerals at the Omac Laboratory, Ireland.

Certified reference materials, blanks, and field and laboratory duplicates were routinely inserted for quality assurance and quality control.

Qualified Person

David Clark, PGeo, consulting geologist to the Company, is a Qualified Person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Clark has reviewed and approved the disclosure of technical information contained in this news release.

About Medgold

Medgold is a European-focused, TSX-V listed exploration and development company targeting gold properties in northwest Iberia and the under-explored gold provinces of southern Europe. Run by a highly experienced management team with a successful track record of building value in resource companies, Medgold is aiming to become a leading European gold company.

Additional information on Medgold can be found on the Company's website at www.medgoldresources.com and by reviewing the Company's page on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

Daniel P. James, President & Director

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about proposed exploration work on the Boticas Project. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, whether the proposed exploration work on the Boticas Project will proceed as planned; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the proposed exploration work on the Boticas Project will proceed as planned; that the Company's stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.