TORONTO, ONTARIO--(Marketwire - Oct. 20, 2011) - Continental Gold Limited ("Continental" or the "Company") (TSX:CNL) is pleased to announce results for 13 diamond drill-holes from the Company's ongoing program at its Buriticá Project in Antioquia, Colombia. Over 86,000 metres of diamond drilling have been completed on the property to date and ten drills are currently on schedule to complete approximately 100,000 metres of surface and underground drilling by the end of 2011. This release contains drilling results post-dating the drilling database utilized in the Company's maiden NI 43-101 compliant resource estimate (September 15, 2011 press release).

Highlights

Yaragua System (Figure 1)

• BUSY189, drilled in the east of Yaragua has intersected high-grade mineralization, including:
  
  
  • 8.1 m @ 137.5 g/t Gold, 24 g/t Silver, including 1.4 m @ 368.6 g/t Gold, 31 g/t Silver
    
    
  This intercept and others in BUSY189 indicate that the Yaragua/Yaragua South system remains open to the east of the current resource model.
  
  
• BUSY191 and BUSY197, drilled to the west of the Yaragua System, each encountered multiple vein sets within broader mineralized intervals, extending several of the Yaragua family of veins to the west of the Diatreme Fault and at depth, mostly outside of the current resource model. Significant intercepts include:
  
  
  • 2.8 m @ 13.1 g/t Gold and 2.2 m @ 13.5 g/t Gold in BUSY191
  • 6.2 m @ 4.6 g/t Gold deep in BUSY197
    
    
• BUUY60 and BUUY61 in the sparsely-drilled central Yaragua area intersected high-grade mineralization in the southern and central Yaragua vein sets deeper than previous drilling in this area including:
  
  
  • 3 m @ 20.7 g/t Gold and 14 g/t Silver in BUUY60
    
    
• BUUS005, BUUS008 & BUUS009, short holes drilled south from the San Antonio vein development each intersected a high-grade vein demonstrating 75 metres of strike length of this vein in the hanging wall of the San Antonio vein family.

Veta Sur System (Figures 1 & 2)

• BUSY193 intersected several vein sets in central Veta Sur including:
  
  
  • 30 m of 20 g/t Gold and 33 g/t Silver, including 2.45 m @ 39.5 g/t Gold and 29 g/t Silver and 5 m @ 57 g/t Gold and 102 g/t Silver
    
    This intercept extends a thick high-grade subzone deep in Veta Sur to over 60 metres of strike length and remains open laterally and vertically.
    
    
• BUSY195 extends the Veta Sur system to the southwest and at depth in an area outside the current resource model. The system remains open to the southwest of and below the high-grade intercept of:
  
  
  • 2.7 m @ 25.4 g/t Gold and 33 g/t Silver at RL 1504 m
    
    
• BUSY200, drilled in northeast Veta Sur, intersected several vein sets and broader mineralized intervals with relatively higher silver/gold grades, including:
  
  
  • 1 m @ 0.6 g/t Gold and 250 g/t Silver at RL 1662 m and 1 m @ 16.6 g/t Gold and 95 g/t Silver at RL 1460 m
    
    Intercepts further down-hole exhibit higher gold/silver grades and include:
    
    
  • 1.29 m @ 15.9 g/t Gold and 14 g/t silver at RL 1219 m
    
    This intercept is the deepest encountered in eastern Veta Sur and is outside the current resource model.
    
    
• Deep drill-hole, BUSY221, has encountered apparently mineralized Stage I-style veins (awaiting assay) between RL's 1000-900 metres, some 250 metres below previous intersections in central-western Veta Sur and separated laterally by 200 metres from deep intercepts in BUSY210.

Details

Continental's 100%-owned, 19,452-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal-carbonate style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade "Stage II" mineralization. The two most extensively explored of these areas (the Yaragua system and the Veta Sur system, Figure 1) are central to this land package. The Yaragua System has been drill-outlined along 570 metres of strike and 600 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 500 metres of strike and over 900 vertical metres (visual results only on BUSY210 and BUSY221; assay results are still outstanding). Both systems are characterized by multiple steeply dipping veins and broader more disseminated mineralization and both remain open at depth and along strike at high grades. Continental recently issued a NI 43-101 compliant maiden resource estimate for parts of the Yaragua and Veta Sur systems (September 15, 2011 press release).

Drilling at Yaragua (Figure 1) has focused on and has been successful in:

• extending the system to the east and south outside of the current resource model;
• better defining the central part of the vein system; and
• extending the system to the west of the current resource model.

BUSY189 intersected high-grade gold mineralization to the east of previous drilling in the Yaragua system, demonstrating that the system is open to the east and at depth. The broad high-grade intercepts (8.1 m @ 137.5 g/t Gold, 24 g/t Silver) in this drill-hole is outside the current Yaragua resource model. Stage I and Stage II mineralization are both evident in the mineralized intercept. Further drilling in the area is expected to clarify whether this intercept represents a new vein set or a fault offset of the southern veins in the Murcielagos family. Further down-hole, BUSY189 intersected several other auriferous vein sets, including from 219.3 m, 3.4 m @ 13.4 g/t Gold, representing extensions to the east and at depth of Yaragua veins in the current resource model. The deep intersections in BUSY189 (e.g. from 420.7 m, 0.7 m @ 13.7 g/t Gold and 51 g/t Silver) are newly discovered veins in the Yaragua north area (Figure 1).

BUUY60, BUUY61, BUUS005, BUUS008 and BUUS009, all collared underground in central Yaragua, each intersected multiple auriferous vein sets and, in the case of BUUY60, broad intervals of lower grade breccia-hosted mineralization. The higher grade intercepts in BUUY60 (from 205.5 m, 3 m @ 20.7 g/t Gold) and BUUY61 (from 229.25 m, 0.85 m @ 13.3 g/t Gold) are deeper than previous drilling in this area and will add to the confidence level of modeled resources in central Yaragua. BUUS009, drilled into the wall of San Antonio vein development, increased the modeled thickness of this vein in this area and intersected a high-grade vein to the south of San Antonio. BUUS005 and BUUS008 also intersected this vein, demonstrating about 75 metres of strike length at this level.

BUSY191 and BUSY197 both intersected multiple auriferous veins within broader mineralized intervals that confirm vertical continuity within the western part of the Yaragua vein system, below the Diatreme Fault and also largely to the west of the current Yaragua resource model. Although vein correlations remain uncertain in west Yaragua, the 2.8 m intercept @ 13.1 g/t Gold and 23 g/t Silver (from 198.8 m) in BUSY191 appears to be of the Vein C family, correlating with high-grade intercepts further west in BUSY182. Other high-grade intercepts from 269.8 and 280.8 metres down-hole in BUSY191 appear to represent the Murcielagos vein family and correlate with the +100-metre deeper intercepts from 439.1 metres (6.2 m @ 4.6 g/t Gold) and from 495.7 metres in BUSY194.

Drill hole BUSY191 continued into the Yaragua South area at depth, where it intersected veins with high silver/gold grades (including 2.44 m @ 0.4 g/t Gold, 151 g/t Silver) and a new auriferous vein from 462.5 metres down-hole, which may correlate with intercepts in BUSY174 some 30 metres to the east.

BUSY194 and BUSY201 were also drilled in Yaragua South, primarily for geotechnical purposes for planned underground access, but intersected gold/silver veins south of the Murcielagos family. The high-grade intercept in BUSY194 (1 m @ 13 g/t Gold, from 380.5 m) may correlate with intercepts in BUUY046, whereas the deeper and more westerly intercept (0.95 m @ 21.5 g/t Gold, from 495.7 m) in BUSY194 appears to align with intercepts in BUSY191. In addition to some high silver/gold mineralization, BUSY201 intersected a new auriferous vein south of known veins in the Yaragua South area.

Drilling at Veta Sur has:

• extended the system to the southwest, to the northeast and at depth outside the current resource model; and
  
  
• added significantly to the delineation of a high-grade zone in the central part of the system.

BUSY193, drilled in the central parts of the Veta Sur system, intersected several auriferous vein sets within broader mineralized zones. The broad high-grade intercept (30 m @ 20 g/t Gold and 33 g/t Silver) from 322 metres extended a thick, very high-grade subzone (encountered in BUSY143 and BUSY163) to more than 50 metres in strike length around 1400 m RL (Figure 2). This subzone is open at depth and along strike. The BUSY193 intersection exhibits high-grade Stage I and Stage II mineralization, including three intervals greater than 100 g/t Gold (Figure 2), the latter occurrences of which are among the deepest drilled in Veta Sur to date.

Intersections in BUSY195 to the southwest of Veta Sur extended several veins to greater depth in this area (Figures 1 & 2), outside the current Veta Sur resource model. The Veta Sur system remains open to the southwest.

BUSY200 drilled in eastern Veta Sur intersected (from collar to 380 metres down-hole) several vein sets within broader mineralized intervals, all exhibiting relatively high silver/gold grades and locally high silver grades (Figures 1 & 2). At greater depths and corresponding to the more southerly vein sets in Veta Sur, BUSY200 intersected several auriferous vein sets with higher gold/silver grades including from 589.5 m, 1.29 m @ 15.9 g/t Gold and 14 g/t Silver. The latter intercept, around 1220 m RL (Figure 2), is the deepest drilled in Veta Sur to date. Most of the intercepts in BUSY200 are outside the current Veta Sur resource model and the system remains open to the east and at depth.

BUSY221 (Figures 1 & 2), drilled north of BUSY210 and the second drill-hole in the Veta Sur deep-drilling program, has encountered several apparently mineralized vein sets of Stage I character. The visual intercepts in BUSY221 include several between RL 900 m and RL 1000 metres, more than 200 metres below previous drilling in central Veta Sur (Figure 2) and separated by 200 metres laterally from deep intersections in BUSY210. Assays are pending for BUSY221 and other deep holes.

Technical Information

The results of the Company's drilling program have been reviewed, verified and compiled by Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101. Dr. Wall is a geologist with 35 years in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The company utilizes an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one-half shipped to a sample preparation lab in Medellín run by SGS Colombia. 100% of BQ diameter drill samples are shipped. Samples are then shipped for analysis to SGS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check-assayed at ACME laboratories in Vancouver, Canada and/or Inspectorate Labs in Reno, Nevada.

About Continental Gold Limited

Continental Gold Limited (TSX:CNL) is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production in 2014. A maiden 43-101 compliant resource estimate for Buriticá covering two major vein systems was announced on September 15, 2011, with combined measured and indicated resources of 630,000 ounces of gold at 17.8 g/t, 1,500,000 ounces of silver at 42 g/t and 18,700,000 pounds of zinc at 0.8% as well as combined inferred resources of 2,500,000 ounces of gold at 11.4 g/t, 9,500,000 ounces of silver at 43 g/t and 88,000,000 pounds of zinc at 0.6%. With a goal of being the first modern day gold producer in Colombia, Continental will commence construction of an underground ramp in early 2012, initially providing access for underground drilling and eventually used for commercial production in 2014. A 100,000-metre drill program is also near completion at Buriticá to further delineate the resource and drill new target zones identified within its concession. Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the Buriticá project) with respect to estimates of mineral resource quantities, mineral resource qualities, the potential scope and context of the mineralized area, the potential for upgrading the mineral resource estimate and the Company's exploration and drilling targets, goals, objectives and plans. These forward- looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: failure to establish estimated mineral resources; the grade, quality and recovery of mineral resources varying from estimates; risks related to the exploration stage of the Company's properties; the possibility that future exploration results will not be consistent with the Company's expectations (including identifying additional and/or deeper mineralization); changes in the price of gold; changes in equity markets; political developments in Colombia; uncertainties relating to the availability and costs of financing needed in the future; changes to regulations affecting the Company's activities; delays in obtaining or failures to obtain required regulatory approvals; the uncertainties involved in interpreting drilling and exploration results and other geological data and other factors (including exploration, development and operating risks); as well as those further discussed in the section entitled "Description of the Business: Risks of the Business" in the Company's most recent Annual Information Form and other regulatory filings which are filed on SEDAR at www.sedar.com.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

To view, Figure 1 – Plan View of New Drilling, please visit the following link: http://media3.marketwire.com/docs/CNLfig1.pdf .

To view, Figure 2 – Longitudinal Section of Veta Sur, please visit the following link: http://media3.marketwire.com/docs/CNLfig2.pdf .