Core Gold Announces Indefinite Suspension of Production and Commercial Activities in Ecuador Due to Force Majeure

VANCOUVER, British Columbia, April 15, 2020 (GLOBE NEWSWIRE) -- Core Gold Inc. ("Core Gold" or the "Company") (TSX-V: CGLD, OTCQX: CGLDF), after careful consideration, regrettably announces the indefinite suspension of all its production operations and commercial activities in Ecuador due to force majeure resulting from the COVID-19 virus pandemic. Unfortunately, and effective immediately, all labour and contract relationships are terminated.

The decision was taken as a direct consequence of the extended health emergency throughout the country resulting from the COVID-19 virus pandemic, and the restrictions and measures taken to control and limit movement of people and transportation of materials at the local, interprovincial and international level. These events are completely beyond the Company’s control.

“Ecuador continues to suffer the health and economic impacts of the COVID-19 pandemic. The Government of Ecuador and the companies operating in the country have been obliged to take difficult decisions that impact everyone,” said Mark Bailey, CEO of Core Gold. “The forced suspension of production operations plus the uncertainty as to when the government-mandated transportation and supply restrictions will end, have resulted in a situation that impedes restarting operations for an indefinite period.”

“The Company’s management team and Board of Directors sincerely thank all employees, consultants and contractors for their hard work and their valuable contributions. We very much appreciate all of their continued dedication, patience and support during these extraordinary times. We understand the impact that the suspension of our production operations will have on our employees and their families. This was a very difficult decision, the result of a deep and careful analysis of the current situation, various scenarios, and future prospects, but unfortunately there was no alternative action possible for the Company.”

About Core Gold Inc.

The Company is a Canadian-based mining company involved in the exploration and development of mineral properties in Ecuador. The Company is currently focused on its flagship wholly-owned Dynasty Goldfield Project. The Company also owns other significant gold exploration projects including the Linderos and Copper Duke area in southern Ecuador all of which are on the main Peruvian Andean gold-copper belt extending into Ecuador.

For further information please contact:

Mr. Mark Bailey, CEO, Director
Suite 1201 – 1166 Alberni Street
Vancouver, B.C.  V6E 3Z3
Phone: +1 (604) 345-4822
Email: [email protected]

Cautionary Notice:

This news release contains “forward looking statements” and “forward looking information” under applicable securities laws (collectively the “forward-looking statements”), which are prospective in nature, relating, but not limited to, the Consolidation and the expectations, intentions, plans and beliefs of Core Gold.  Forward-looking statements are prospective in nature and can often be identified by forward looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “estimate”, “optimize”, or “may” or similar words suggesting future outcomes or other expectations, intentions, plans, beliefs, objectives, assumptions or statements about future events or performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events, results performance or achievements to be materially different from any future events, results, performance or achievements expressed or implied by the forward-looking statements. Assumptions upon which forward-looking statements related to the Consolidation are based include, without limitation, that Shareholders will approve the Consolidation and that all other conditions to the completion of the Consolidation will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of the Core Gold and may not prove to be correct. Should one or more of these factors or events fail to materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as anticipated, believed, expected, planned, intended or estimated. Factors that could cause actual events or results to vary materially from results anticipated by such forward looking statements include, but are not limited to: the parties’ ability to consummate the Consolidation; the conditions to the completion of the Consolidation, including the receipt of Shareholder and regulatory approvals, on the terms expected or within the anticipated time schedule and the parties’ ability to meet expectations regarding the timing of the Consolidation. Other risks include market prices, operating successes and failures, continued availability of sufficient capital and financing to complete the Consolidation and general economic, market or business conditions. Core Gold cautions that the list of forward-looking statements, risks and assumptions set forth or referred to above is not exhaustive. All forward looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and the Core Gold does not undertake to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent expressly required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.