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True Gold Mining Reports Q2 2014 Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/29/14 -- True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce financial results and business highlights for the six-months ended June 30, 2014.

"We delivered on a number of key milestones related to financing, permitting, project development and exploration," stated Dwayne Melrose, True Gold's President & CEO. "We are now the clear leader among our development peers and as we continue to execute over the next 15 months we will emerge as a new and highly profitable gold producer with a long life gold mine in Burkina Faso."

SECOND-QUARTER 2014 HIGHLIGHTS AND SUBSEQUENT EVENTS INCLUDE:

--  Project Finance - Karma Project Fully Funded: 
    
    --  Secured up to US$120 million financing from Franco-Nevada
        Corporation and Sandstorm Gold Inc. to fully fund the Karma Project
        construction as well as certain corporate and Burkina general and
        administrative costs.
        
    --  Since May 2013, True Gold has arranged approximately $200 million in
        funding. In February 2014, we closed a public market bought deal
        financing, which included participation from our second largest
        shareholder Teck Resources Limited, and a concurrent private
        placement with Liberty Metals & Mining Holdings, LLC, for total
        gross proceeds of $51.9 million. These proceeds provided the project
        equity component necessary to develop and construct the Karma
        Project and support ongoing exploration.
        
    --  With development fully funded and mining permits secured to commence
        construction, True Gold's Board of Directors has approved a
        construction decision and is targeting commercial production for the
        end of 2015.
        
        

--  Permitting: 
    
    --  Received the Karma Project exploitation (mining) permit to conduct
        mine construction and operations at three of the development
        deposits. A ground breaking ceremony was held in May 2014.
        
    --  Burkina Faso Ministry of Environment granting of the final
        environmental permits for all Karma development deposits.
        
    --  Burkina Faso Ministry of Mines Technical Committee approval of the
        application to extend the Karma exploitation permit to include the
        Nami and Kao deposits. We are expecting approval of the extension of
        the Karma exploitation permit to be granted by the end of Q3. 
        
        

--  Project Development: 
    
    --  Commenced construction activities including upgrading the site
        access road and the start of plant site earthworks.
        
    --  Ordered and put deposits on the mining fleet for delivery to site in
        Q4 - 2014.
        
    --  Continued to strengthen our mine-building team in Burkina Faso.
        
    --  Completed detailed engineering and design, results of which indicate
        a potential for cost savings in a number of important areas.
        
    --  Completed Phase 2 barrage construction ahead of schedule and under
        budget. The barrage is currently filled to full capacity and will
        provide sufficient water for mine construction and operational
        needs, as well as potentially providing a year-round water source
        for local communities.
        
    --  Awarded SENET (Pty) Ltd., a leading South African based mineral
        process and engineering firm, the engineering, procurement and
        construction management contract for the construction of the Karma
        Project. 
        
        

--  Reserves: 
    
    --  Probable Mineral Reserves of 949 kozs gold (33.2 Mt at 0.89g/t Au).
        
        

--  Resource Update:
    
    --  Reported a significant new resource north of the Kao deposit ("North
        Kao") that adds 1.66 million ounces of gold (Inferred Mineral
        Resource of 47.8 Mt at 1.08 g/t Au) to Karma's overall resource
        inventory and potential future production profile. This includes in-
        pit leachable material of 423 kozs of gold (Inferred Mineral
        Resource of 16.4 Mt at 0.80 g/t Au), potentially doubling the
        leachable material at Karma's largest deposit (Kao). The updated
        Karma Project mineral resource, including North Kao is as follows: 
        
        

----------------------------------------------------------------------------
Category                                   Indicated                Inferred
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                                  Mt  Au g/t  Au koz      Mt  Au g/t  Au koz
----------------------------------------------------------------------------
                                                                            
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In-Pit (shell-constrained)      75.2    1.08   2,621    65.3    1.13   2,362
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Global Mineral Inventory        82.6    1.04   2,776      80    1.05   2,704
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1.   The Mineral Resource estimate is quoted at the same cut-off grades and 
     economic parameters for the constrained pit optimizations that were    
     used for mineral resources in the updated Karma Technical Report: 0.20 
     grams per tonne ("g/t") gold ("Au") for Oxide, 0.22 g/t Au for         
     Transition and 0.5 g/t Au for Sulphide, and a gold price of US$1,557/oz
     (refer to NI 43-101 technical report titled "Technical Report          
     andUpdated Resource Estimate on the Karma Gold Project, Burkina Faso,  
     West Africa", dated March 13, 2014 and filed on SEDAR on April 28,     
     2014).                                                                 
                                                                            
2.   Mineral Resources presented above are inclusive of Probable Mineral    
     Reserves (refer to NI 43-101 technical report titled "Technical Report 
     andUpdated Resource Estimate on the Karma Gold Project, Burkina Faso,  
     West Africa", dated March 13, 2014 and filed on SEDAR on April 28,     
     2014).                                                                 
                                                                            
3.   Mineral resources which are not mineral reserves do not have           
     demonstrated economic viability. The estimate of mineral resources may 
     be materially affected by environmental, permitting, legal, title,     
     taxation, sociopolitical, marketing, or other relevant issues.         
                                                                            
4.   The quantity and grade of reported Inferred mineral resources in this  
     estimation are uncertain in nature and there has been insufficient     
     exploration to define these Inferred mineral resources as an Indicated 
     or Measured mineral resource and it is uncertain if further exploration
     will result in upgrading them to an Indicated or Measured mineral      
     resource category.                                                     
                                                                            
5.   The mineral resources in this MD&A were estimated using the Canadian   
     Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on  
     Mineral Resources and Reserves, Definitions and Guidelines prepared by 
     the CIM Standing Committee on Reserve Definitions and adopted by CIM   
     Council.                                                               
                                                                            

--  Commenced a Preliminary Economic Assessment ("PEA") on the new inferred
    resource to evaluate the potential economic impact of an extension of
    the mine life as laid out in the technical report entitled "Updated
    Resource Estimate and Feasibility Study on the Karma Gold Project,"
    prepared by P&E Mining Consultants Inc. dated effective December 17,
    2013 ("Karma FS"), a copy of which is available under the Company's
    profile on SEDAR at http://www.sedar.com/. The PEA is anticipated to be
    completed in the second half of 2014. 
    

Exploration

--  Completed a 15,000 metre drill program at key exploration targets at the
    Karma Gold Project. The program is designed to discover new domains of
    open-pit, leachable material that could ultimately be incorporated into
    the current feasibility mine plan for potential mine life extensions or
    throughput increases. Results are expected in Q3 2014.
    
--  Reported positive drilling results at priority targets that expand and
    demonstrate continuity of gold mineralization and the potential to add
    more near-surface leachable material within the Karma Project.
    

SELECTED FINANCIAL DATA

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the six months ended June 30, 2014. These documents can be found on the Company's website (www.truegold.com) or on SEDAR at www.sedar.com. All amounts are presented in Canadian dollars unless otherwise stated.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             Three months ended            Six months ended 
                         June 30,      June 30,      June 30,      June 30, 
                             2014          2013          2014          2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net loss for the                                                            
 period              $ (6,647,327) $ (9,349,714) $(10,942,836) $(14,921,723)
Loss and                                                                    
 comprehensive loss                                                         
 for the period      $ (6,680,098) $ (9,410,256) $(11,008,378) $(15,284,975)
Basic and diluted                                                           
 loss per share      $      (0.02) $      (0.05) $      (0.03) $      (0.08)
----------------------------------------------------------------------------
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----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                      As at 
                                                     June 30,      December 
                                                         2014      31, 2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and short term                                                         
 investments                                     $ 51,228,202  $ 24,014,411 
Working capital                                  $ 47,316,508  $ 21,189,672 
Total assets                                     $ 82,591,723  $ 42,758,028 
Current liabilities                              $  4,527,182  $  3,162,074 
Non-current                                                                 
 liabilities                                     $        nil  $        nil 
Shareholders' equity                             $ 78,064,541  $ 39,595,954 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the three and six month period ended June 30, 2014, we reported a net loss of $6.6 million and $10.9 million respectively, compared to net losses of $9.3 million and $14.9 million for the three and six month period ended June 30, 2013. Operating expenses totalled $6.9 million for the three months ended June 30, 2014 down 26% from $9.3 million a year earlier. The principle reason for the decrease was lower exploration and evaluation expenditures of $4.9 million (as compared to $6.6 in the comparative period) as the Company has begun pre-development work on the Karma Project. The Company has commenced capitalizing costs related to pre-development in the current period. Decreases in office and general expenses also contributed to the decrease in operating expenses. Operating expenses totalled $11.6 million for the six months ended June 30, 2014 down 22% from $14.9 million a year earlier. The principle reason for the decrease was lower exploration and evaluation expenditures of $6.7 million (as compared to $9.7 in the comparative period) as the Company has begun pre-development work on the Karma Project.

Total assets as at June 30, 2014 have increased since December 31, 2013 by $40.0 million to $82.6 million, mainly due to (i) to an increase in cash and short term investments reflecting cash inflows from financing transactions through the six months ended June 30, 2014; and (ii) the capitalization of pre-development costs related to the Karma Project, including: Phase 2 of the barrage and other construction activities such as upgrading the site access road and the start of plant site earthworks. This increase was partially offset by cash outflows from operations.

Scott Heffernan, M.Sc., P.Geo., Vice President Exploration of the Company, and Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, are the designated Qualified Persons within the meaning of NI 43-101 for this news release. They have reviewed and verified that the scientific and technical information contained in this release is accurate and approves of the written disclosure of same.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Dwayne Melrose, President & CEO

Neither 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 release.

Unless stated otherwise, information of a scientific or technical nature in this press release regarding the Karma Project is summarized, derived or extracted from the technical report entitled "Updated Resource Estimate on the Karma Gold Project, Burkina Faso, West Africa", dated March 13, 2014 prepared by P&E Mining Consultants Inc.,and filed on SEDAR on April 28, 2014.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk

as well as those factors discussed in the Annual Information Form of the Company dated April 30, 2014 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.

Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources". While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. True Gold is not an SEC registered company.

Contacts:
Vancouver Office:
604-801-5020
[email protected]

Investor inquiries:
Alex Holmes
604-632-4677
[email protected]
www.truegoldmining.com

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