Affinity Gold Inks Deal to Acquire Stake in Alicanto Mining's Rionegro Project

Affinity Gold Corp. is pleased to announce that pursuant to the strategic joint venture with private Canadian junior Alicanto Mining Corp., announced on May 7, 2014, it has entered into an agreement for the acquisition of a 49% interest, with the possibility to acquire up to a 75% interest, in Alicanto's Rionegro project located in Santander, Colombia.

The Rionegro project is located in an area represented by a very large Horst/Graben structure in Paleozoic Carbonaceous Conglomerates and other metasedimentary rocks. The Graben serves as the basin of the main river in the area carrying gold in the active sediments and in Tertiary paleoplacers which are amenable to near-term production. The project comprises Alicanto's 7.66 square kilometer license as well as approximately 190 square kilometers surrounding the license for which Alicanto has filed applications with Colombia's National Mining Agency.

Project Highlights

• 766 hectares fully-owned and controlled outright with no third-party arrangements outside the joint-venture partners.
• Accessible project located approximately 40 Km from Bucaramanga, Colombia's sixth largest city, with very good infrastructure providing ready access to water, power, and labor.
• Very prospective geological structures for both hard rock and alluvial targets.
• Current alluvial mining operations by third-parties in nearby paleoplacers confirms the area's prospectivity.
• Focus on attaining near-term production from Rionegro's paleoplacers to be followed by an exploration program for the rest of the project.