Abzu Gold Announces Non-Brokered Private Placement and Management Changes

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 2, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Abzu Gold Ltd. ("Abzu" or the "Company") (TSX VENTURE:ABS) is pleased to announce that certain investors, including Stonehouse Construction Pte. Ltd., intend to invest an aggregate of $2,000,000 in the Company through a non-brokered private placement (the " Private Placement") of 40,000,000 units (the "Units") of the Company at a price of $0.05 per Unit. Each Unit will consist of one common share (a "Share") of the Company and one common share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder thereof to purchase one Share at a price of $0.10 per Share for a period of 12 months following the closing of the Private Placement.

The Private Placement is subject to TSX Venture Exchange (the "Exchange") approval and all securities issued pursuant to the Private Placement, including the Shares issued on exercise of the Warrants, will be restricted from trading for a period of four months and a day from the date of issuance of the Units in compliance with securities legislation and Exchange policies. The proceeds from the Private Placement will be used for the Company's on-going development of its operations in Ghana and general working capital purposes.

Effective today, the Company also announces the appointment of Mr. David Price as Chief Executive Officer of the Company, who will be replacing Mr. Timothy McCutcheon who has resigned as a Director and the Chief Executive Officer of the Company. In addition, Mr. Ross McDonald has resigned as the Chief Financial Officer of the Company, and will be replaced by Mr. Wilson Soon. The Company thanks Mr. McCutcheon and Mr. McDonald for their contributions to the Company and wishes them continued success.

David Price

Mr. David Price is a seasoned and forward-thinking senior executive with more than 25 years of bankable experience in Project Finance and Funding, Investor Relations, M&A and major project execution and delivery experience, from concept to full commercial operation, of major resource development opportunities and utility grade power generation projects around the Globe.

Currently, Mr. Price is Country Manager, Canada for Stonehouse Mining Group as well as Corporate Communications Manager for KazaX Minerals Inc., and is well-versed in mining resource development with significant strength in economic analysis and valuation, project finance, financial and economic modeling, mine design and operation management. He has operated extensively throughout Africa, South America, Canada and the USA. He has vast experience in environmental assessment, statutory and regulatory compliance and approvals, associated with the development and delivery of major potash, gold, silver and poly-metallic mining and construction projects. Projects include Palaborwa Mine, Buffelsfontein Mine, Sigma Colliery and the Milestone Project.

Experienced in Utility Grade Energy Resource development, Mr. Price has delivered the first Wind Park in Ontario and the Bear Mountain Wind Park in B.C., hydroelectric, cogeneration, combine cycle, wind, biomass, and landfill gas power generation development projects when having worked with blue-chip companies such as Rio Tinto, Anglo American, Clean Power Income Fund, the Probyn Group, AltaGas, Fluor Daniel Corp., and SOEKOR.

Mr. Price obtained his MBA from the London Business College, a Bachelor of Science degree in Civil Engineering from Leeds University, England.

Mr. Gordon Neal, Chairman of Abzu Gold Ltd., stated that "the Abzu Board are delighted to have secured the services of David, a well-seasoned professional with a proven track record in getting projects to production, which will be of paramount importance in driving forward Abzu's flagship operation in Nangodi, Ghana."

On behalf of the board of directors of ABZU GOLD LTD.

Gordon Neal, Chairman

Cautionary Statements

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Abzu's public documents filed on SEDAR at www.sedar.com. Although Abzu believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Abzu disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction; nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons absent registration or an applicable exemption from registration requirements.