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Samco Gold, Pan American Silver Agree to Begin Option Agreement on El Dorado Monserrat Project in Argentina

Samco Gold Limited ("Samco" or the "Company") announces that Samco and Pan American Silver, through their respective local subsidiaries, agreed to set September 1, 2016, as the effective date of the previously announced option agreement dated February 4, 2015, as amended (the "Option Agreement"). The Option Agreement grants PAS the exclusive option to acquire a 60% interest in the El Dorado Monserrat project in Santa Cruz, Argentina ("EDM"). The effective date of the Option Agreement had been delayed by the parties pending resolution by Samco of the litigation commenced by Yamana Gold Inc. that referenced EDM. As announced by Samco on May 26, 2016, this litigation was settled as against Samco and its local subsidiary. As such, the parties now wish to commence the Option Agreement and related exploration work on EDM.

Details of the business terms of the Option Agreement are described in Samco's news release dated May 29, 2014.

About Samco Gold Limited

Samco Gold's principal business has been the acquisition, exploration and development of precious metals resource properties in Argentina and the region. The Company's principal mineral property in Argentina is the El Dorado Monserrat ("EDM") epithermal gold project, located in the Deseado Massif region of Santa Cruz Province. With an experienced board and management team the Company's goal remains to become an Argentinean producer of gold and silver through the exploration and development of EDM. Samco Gold also owns a portfolio of other mineral exploration properties in the Deseado Massif.

Additional details on the Company are available on SEDAR (www.sedar.com).

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