Continental Gold Drills 10.23m @ 44.76 g/t Au, 5.10m @ 84.92 g/t Au, and 6.1m @ 48.87 g/t Au and Expands the Vertical Extent of High Grade Intersections in Veta Sur to 470m

TORONTO, ONTARIO--(Marketwire - May 4, 2011) -Continental Gold Limited ("Continental" or the "Company") (TSX:CNL) is pleased to announce results for 25 diamond drill-holes from the Company's ongoing program at its Buriticá Project in Antioquia, Colombia. Over 56,000 metres of diamond drilling have been completed on the property to date and nine drills are currently working on a 50,000-metre surface and underground drill program for 2011.

Highlights

Details

Continental's 100%-owned, 14,000-hectare Buriticá Project contains several known areas of high-grade vein mineralization. The two most extensively explored of these areas (the Yaragua system and the Veta Sur system) are central to this land package. The Yaragua System has been drill-outlined along 550 metres of strike and 600 vertical metres and partially sampled in underground developments. To the southwest of Yaragua (Figure 1), the Veta Sur system has been drill-intersected along 500 metres of strike and 470 vertical metres. Both systems are characterized by multiple veins and remain open along strike to the west and at depth. Planning has been finalized for a one kilometre decline tunnel at the 1200 metre elevation level which will provide drill access to test the deeper portion of both vein systems.

Veta Sur System

Table 1 presents summary results of eight drill-holes, which tested the 40-120m wide Veta Sur system of veins along its central 300 metres of strike extent. Figures 1 and 2 respectively show the intercepts in longitudinal section and plan view.

Drill-holes BUSY-137, -152, -144 and -155 targeted the central part the vein system (Figure 2). BUSY-137 cut nine veins including a 10.23m @ 44.76 g/t Au. The high grade intersections in BUSY-152 (5.05m @ 41.02 g/t Au and 5.1m @ 84.92 g/t Au) include bonanza grade samples, which expand the area of +100 g/t gold ("Au") values on two veins (Figure 1). Silver ("Ag") values and Ag:Au ratios are variable across the several veins in this central area. For example, BUSY-137 exhibits an intersection of 13.7m @ 4.29 g/t Au and 234 g/t Ag including 1.4m @ 24.53 g/t Au and 2176 g/t Ag, whereas adjacent veins exhibit lower Ag:Au. This variability may be due to the variable intensities of Stage 1- vs. Stage 2-style mineralization.

Drill-holes BUSY-155 and BUSY-158 are the deepest to date in Veta Sur, penetrating the vein package to almost 500 metres below surface. Both drill-holes cut at least eight individual veins, intercepts in the respective holes being separated by up to 200m along strike (Figure 1). There are five intercepts in BUSY-155 between the 1240- and 1350-metre elevations, the deepest of which is 4.50m @ 45.45 g/t Au. BUSY-158 exhibits four significant intersections in this elevation range, among them contain 14.5m @ 21.56 g/t Au including 6.1m @ 48.87 g/t Au and 109.5 g/t Ag. Pyrrhotite occurs along with pyrite as part of the Stage1 assemblage in both drill-holes, but the Stage 2 -overprint, which is responsible for the bonanza gold grades, is strong in both holes and has now been seen over a vertical extent 470 vertical metres in the Veta Sur system.

The presence of thick, lower grade precious metal intercepts in the Veta Sur system (noted in the press release of March 22, 2011) is further documented in BUSY-137 (13.7m. @ 4.29 g/t Au and 234.0 g/t Ag), BUSY-144 (13m @ 4.88 g/t au and 21.7 g/t Ag) and BUSY-155 (19.60m @ 2.69 g/t Au and 13.1 g/t Ag). Given the widespread occurrence of this type of intercept, both at Veta Sur and in the Yaragua breccia, such areas may potentially support bulk underground mining in both systems.

Table 1 – Veta Sur Drilling Results

Several drill holes showed high Ag/Au and good silver grades to the north and south of the main body of Veta Sur (Figure 1 and Table 2). These (and previously released) intercepts are interpreted to indicate silver-rich vein systems of substantial strike length and depth extents, but of (as yet) unknown continuity. On the basis of soil geochemical anomalies these vein systems are expected to be increasingly prominent to the southwest of Veta Sur.

Table 2 – Veta Sur margin areas

Yaragua Vein System

New drill results in the Yaragua area are summarized in Table 2 and shown in plan view in Figure 2.

BUSY-124, -149, -154 and -156 were drilled to plug gaps in drilling of the upper central part of the Yaragua system, targeting the San Antonio and more northerly vein packages. San Antonio vein intercepts in BUSY-124 (3.80m @ 40.97 g/t Au and 55 g/t Ag) and BUSY- 124 (1.50m @ 81.60 g/t Au and 9.8 g/t Ag) are both at higher elevations than tunnels sampled on San Antonio, (CNL Press release, February, 2011) confirming extensions of this high grade vein toward the surface.

BUSY-124, -154 and -156 intersected several vein sets to the immediate south of San Antonio vein encountering potentially economic grade-thicknesses in the HW and Sofia veins (including 5.0m @ 20.2 g/t Au and 9.5 g/t Ag) in the latter.

To the north of the San Antonio vein these drill-holes also encountered potentially economic grade-thicknesses in the FW and D veins (including 2.0m @ 32.32 g/t Au and 71.5 g/t Ag in the latter, BUSY 154). BUSY-156 intersected 1.0m @ 84.74 g/t Au and 39.0 g/t Ag in the newly interpreted Vein E, to the north of Vein D. Further to the east, BUSY-132 and BUSY-145 also intersected Vein E, indicating this vein has at least 150-metre strike length. BUSY-145 and BUSY-154 showed near-collar intercepts indicative of a vein north of Vein E, but had poor recoveries in these intervals.

BUSY-119 was drilled from the south in a previously undrilled area in the eastern Yaragua system (Figure 2), targeting and intersecting the Murcielagos family of veins below Level 3 sampling and development. The drill-hole intersected several other veins including a very high silver variant (0.6m @ 3.31 g/t Au and 574 g/t Ag). The deepest auriferous intercept in BUSY-119 was around 1170m elevation, indicating that the Yaragua vein system has a vertical extent of more than 400m in the eastern part of the system.

BUSY-116, some 400m west of BUSY-119, also intersected potentially economic grade- thicknesses in the Murcielagos vein family. This was at higher elevations and to the west of Level 1 development in this vein family, as well as being to the west of the Diatreme Fault zone.

BUSY-116 also cut several veins to the south of the Murcielagos family, including 1.0m @ 22.92 g/t Au and 12 g/t Ag as well as two intercepts of high Ag/Au (from 52m, 1.0m @ 0.1 g/t Au, 72 g/t Ag and from 72m, 0.8m @ 1.01 g/t and 91 g/t Ag). These veins appear to correlate with high silver veins in BUUY-45 and -46, further to the east and at lower elevations. Three relatively high Ag/Au intercepts in BUSY-119 (from 1.5m, 3m @ 2.78 g/t Au and 33.0 g/t Ag,; from 50.0m, 0.95m @ 4.41 g/t Au and 214.0 g/t Ag; from 69.5m 1.50m @ 3.89 g/t Au and 21.0 g/t Ag) may also be part of what is interpreted to be a silver-rich vein system to the south of the main Yaragua system with potentially 500m of strike length.

For much of the rest of 2011, drill emphasis at Yaragua will be on the eastern 300 metres of the system eastward to the Tonusco Fault. Upgrades to underground infrastructure on Levels 1 and 3 will permit the addition of a second underground drill which will help test a 300m (strike) x 300m (vertical) segment of the Yaragua corridor.

Table 3 – Yaragua System Drilling Results

Other Areas

BUSY-115, 121, and 148 were drilled 50 to 100 metres southwest of the established Veta Sur vein system in an area exhibiting anomalous zinc, silver and gold in soils and partly underlain by Cretaceous siliciclastic metasediments. Mineralised intercepts in these drill- holes exhibit high Ag/Au and high zinc contents, typically in the range 0.5 – 3.0 g/t Au with 10-50 g/t Ag and 1-5% Zn. From 297.5 m, BUSY-115 intercepted 0.7m of 2.42 g/t Au, 81g/t Ag and 27300 ppm. Zn, whereas BUSY-121 intersected 0.17 g/t Au, 132 g/t Ag over 0.7m from 392.5m.

BUSY-135 and -143 were drilled a further 150 metres to the southwest of the above drill-holes (Figure 1) and also encountered mineralization with high Ag/Au. BUSY-135 intersected 139 g/t Ag over 1.3m from 34.5m and 156 g/t Ag over 2.4m from 58.5m.

The above sets of holes demonstrate silver-rich vein systems with substantial vertical extents in this southern area. It is not yet clear whether these vein systems represent high -silver extensions of the Veta Sur system or whether the main auriferous Veta Sur veins lie to north of the silver-rich system.

BUSY-123 was intended to test a gold-silver-zinc soil anomaly underlain by Cretaceous siliclastic sediments in the La Mano area. However, drilling conditions were difficult, core recoveries were low and the hole was lost above target depth. The area is currently undergoing infill soil sampling and trenching and will be re-drilled on different orientations and with different equipment later in the year.

BUSY-147 and -153 were geotechnical drill-holes designed to test the geo-mechanical characteristics of the rock mass along the proposed path of the 1200 level tunnel in preparation for the Q3 2011 start of this opening. For the most part these drill-holes intersected weakly altered and mineralized material.

Technical Information

The results of the Company's drilling program have been reviewed, verified and compiled by Vice President Exploration, Stuart Moller P.Geol., a qualified person for the purpose of NI 43-101. Mr. Moller has over 30 years of mineral exploration experience and is a Licensed Professional Geologist in the Province of British Colombia and a Fellow of the Society of Exploration Geologists.

The company utilizes an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one half shipped to a sample preparation lab in Medellín run by SGS Colombia. Samples are then shipped for analysis to SGS certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME laboratories in Vancouver and/or Inspectorate Labs in Reno.

About Continental Gold Limited

Continental Gold Limited (TSX:CNL) is an advanced-stage exploration company with nine gold projects covering 124,450 hectares in Colombia. Spearheaded by a management team with over 40 years of exploration and mining experience in South America, the Company has begun an aggressive exploration program on its extensive portfolio of properties with a focus on its flagship high-grade gold project, Buriticá. Additional details on the Buriticá project and the rest of Continental Gold's suite of gold exploration properties is available at www.ContinentalGold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

To view Figure 1 – Longitudinal Section of Veta Sur System, please visit the following link: http://media3.marketwire.com/docs/cgoof0504fig1.pdf.

To view Figure 2 – Plan View of New Drilling, please visit the following link: http://media3.marketwire.com/docs/cgoof0504fig2.pdf.