Mr. Michael Smith reports

ELEMENT79 GOLD ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UP TO C$1,000,000

Element79 Gold Corp. intends to complete a non-brokered private placement of up to 55,555,556 units of the company at a price of 1.8 cents per unit for aggregate gross proceeds to the company of up to $1-million.

Each unit will comprise one common share in the capital of the company and one transferable common share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one additional common share of the company at an exercise price of five cents per warrant share for a period of 24 months from the date of issuance of the warrants.

The warrants will be subject to an acceleration provision pursuant to which, at any time following the expiry of the statutory hold period applicable to the warrants, if the volume-weighted average trading price of the company's common shares on the Canadian Securities Exchange (the CSE) equals or exceeds 10 cents per common share for any 10 consecutive trading days, the company may, by news release, accelerate the expiry of the warrants to a date that is not less than 30 days following the date of such news release. Any warrants that are not exercised on or before such accelerated expiry date will expire and be of no further force or effect.

Use of proceeds

The company intends to use the net proceeds of the private placement for general working capital purposes, continuing exploration and project advancement, and such other corporate purposes as the board of directors of the company may from time to time determine.

Finders' fees

In connection with the private placement, the company may pay finders' fees and other compensation to eligible finders introducing subscribers to the company, consisting of (i) cash of up to 7 per cent of the gross proceeds of the private placement raised through such finders, and (ii) finders' warrants representing up to 7 per cent of the number of units sold to subscribers introduced to the company by such finders, with each finder's warrant exercisable on the same terms (including exercise price, term and acceleration provision) as the warrants forming part of the units, all in accordance with the policies of the Canadian Securities Exchange and applicable Canadian securities laws.

Closing, resale restrictions and regulatory approvals

The private placement is expected to close in one or more tranches, in each case subject to the prior acceptance of the CSE and to compliance with applicable Canadian securities laws. The unit shares, the warrants, the warrant shares (if and when issued upon exercise of the warrants), the finders' warrants (if any) and any common shares issuable upon exercise of the finders' warrants will be subject to a statutory hold period of four months and one day from the date of issuance pursuant to National Instrument 45-102 -- Resale of Securities, in addition to any other restrictions on resale imposed by the CSE or applicable Canadian securities laws.

About Element79 Gold Corp.

Element79 Gold is a mining company focused on the exploration, acquisition and development of gold-bearing mineral properties. The company's common shares trade on the Canadian Securities Exchange under the symbol ELEM, on the OTCQB market under the symbol ELMGF and on the Frankfurt Stock Exchange under the symbol 7YS.

We seek Safe Harbor.