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Reunion Gold enters into a letter of intent to acquire an interest in a gold project in French Guiana

LONGUEUIL, QUEBEC--(Marketwired - Nov. 3, 2016) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") dated October 28, 2016 with Union Minière de Saül ("UMS"), an arm's length private company. The LOI outlines the general terms and conditions pursuant to which UMS would grant to Reunion an option to acquire an 80% interest in the Haute Mana gold project in French Guiana, South America. Reunion would be entitled to exercise the option by completing a preliminary economic assessment on the project within a period of five years.

The LOI is to be superseded by a formal option agreement. The transaction will be subject to requisite regulatory approvals including the approval of the TSX Venture Exchange and other conditions. Reunion will be conducting due diligence and evaluating different financing options.

Haute Mana Gold Project

The Haute Mana gold project consists of eight mining concessions covering an area of 121.5 km² in the central-south part of French Guiana, some 170 km SW from the capital city of Cayenne, being accessible by a forest trail and aircraft. Geologically, the region is underlain by a Proterozoic greenstone belt composed of volcano-sedimentary sequences intruded by granitoids and cut by the prominent Sophie-Saul shear zone striking NW-SE and extending for more than 30 km. This is one of the most prolific gold producing area of French Guiana, from at least six "camps" along this shear zone, mostly from artisanal work both in alluvial and primary sources. The region was extensively mapped and explored by the Bureau de Recherches Géologiques et Minières (BRGM) in the eighties, including 4,500 m of auger and 772 m of diamond drilling. Ressources Franc-Or did further exploration work in the nineties, including 79 line kilometres of soil sampling and 1,224 m of diamond drilling. The concession area has seen little other systematic exploration and is considered to have excellent potential for 'shear-type" gold mineralization.

Carlos Bertoni, P. Geo., a consultant to Reunion and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this press release.

About Reunion Gold

Reunion Gold Corporation holds the licences to Matthews Ridge manganese project in Guyana, South America. The project is currently on care and maintenance. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.reuniongold.com).

This news release may contain certain forward-looking statements including statements about the execution of an option agreement and the potential of the project. Such statements are subject to a number of risks, uncertainties and assumptions. Specifically, the transaction referenced herein is subject to the parties executing a binding option agreement and is subject to regulatory approval. There can be no guarantee that the option agreement will be executed and that all necessary approvals will be received in a timely manner or at all.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Reunion Gold Corporation
David Fennell
Chairman and Interim President & CEO
+1 450.677.2601
+1 450.677.2585
info@reuniongold.com
www.reuniongold.com

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