Continental Gold Limited New CGOOF

Effect of Vote?

[LanceFTN]

Not clear to me what the effect of the vote will be. Short term negative, but within the usual noise. It isn't very good for Santos, whose goverment is an advocate for mining, but he isn't up for election again until 2018. Clearly the tax reforms won't happen and with oil revenues down the need for mining revenue will increase. In this way I don't see any reason to slow permitting and mine. What will be interesting is whether CNL can raise the cash for the construction, which it seemed to be positive on before all this discussion of FARC peace. I think we have to see if the FARC continues with its desire to end this thing. Anyway, T. D. Securities has this analysis.

@newstrackerDaniel Earle of TD Securities on Continental Gold Inc. ( $CNL - T) C$4.00 No Direct Impact From Peace Vote Event Sunday night, Colombian voters narrowly rejected a peace accord negotiated over a four-year period by the government and the FARC rebel group to end a five decades long, low level insurgency. Impact: SLIGHTLY NEGATIVE · The result comes as a surprise and disappointment for investors, with the Colombian Peso and bonds softening in overnight trading. ·Both the government and FARC leadership have made statements suggesting they remain committed to a peace process. With this in mind, an immediate return to fighting does not seem likely. · However, the vote apparently weakens the position of a government that intended to pass tax and economic reforms and that has made resource investment a key part of its security/economic agenda. Negotiations with the ELN, another rebel group, may be completely off the table now. · While the headlines may dampen enthusiasm for the country in general, we don't see any direct impact on Continental Gold, whose Buritica project is not located in an area of significant rebel activity. In Antioquia Department, this mainly occurs in the far west and north-central part of the department. · The company is nearing the expected completion of the permitting process for its Buritica project, with the final permit expected in Q1/17. · We estimate that the company is fully funded through to a production decision, with $31mm in available funds (as per the company's September presentation). Please contact your local TD securities Representative for a full report.