Cangold Limited CGLJF

RE:CLD SIGNS LOI FOR GUADALUPE DE LOS REYES PROJECT

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Guadalupe de los Reyes

https://www.vistagold.com/projects_guadalupe.php

In March 2013, Vista completed a Preliminary Economic Assessment for Guadalupe de los Reyes. Highlights of the Preliminary Economic Assessment include:

• Payable production of 327,681 ounces of gold and 4.39 million ounces of silver over a 11 year mine life, including average payable production of 35,031 ounces gold and 253,223 ounces silver over the first five years
• Ore processed through a 1,500 tonne per day plant
• Gold and silver recoveries of 93% and 83% respectively, through a conventional CIL recovery circuit
• Gold-equivalent cash costs of $631 per ounce over the life of mine, including average gold-equivalent cash costs of $568 per ounce over the first five years
• Initial capital costs of $88.9 million and life of mine capital costs of $124.3 million, including a 30% contingency
• After-tax NPV8% of $57.3 million, Internal Rate of Return of 21%, and capital payback of 3.6 years using gold and silver prices of $1,480 and $28 per ounce, respectively.