Columbus Gold to Study Potential for Connecting Montagne d'Or Gold Project to National Power Grid

Columbus Gold Corporation is pleased to announce that it intends to engage Tractebel Engineering to complete a study on potentially connecting Columbus Gold's 100% owned Montagne d'Or Gold Project located in French Guiana to the national power grid.

The power study is part of the ongoing Feasibility Study that commenced in October 2015. Tractebel is being awarded the contract pursuant to a tender that included a number of leading engineering firms. They have 3,300 employees worldwide and are controlled by GDF Suez a French multinational utility company.

The base case assumption in the amended Preliminary Economic Assessment, which was completed by SRK Consulting (U.S.) Inc. in August 2015 (the "PEA"), anticipates that energy will be generated on-site at a cost of approximately US$0.20/kWh. The Tractebel study will review the viability of connecting Montagne d'Or to the national power grid along the existing road. It is anticipated that a grid connection could reduce energy costs by up to 45% or US$0.11/kWh, resulting in significant savings over the life of the mine, noting that energy is one of the largest components of operating costs.

The power study is being funded by Nord Gold N.V. (LSE:NORD LI) as part of a minimum US$30 million exploration and development program pursuant to which they can earn a 50.01% interest in Montagne d'Or by funding completion of a Feasibility Study.