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True Gold Mining Inc ( TSXV: TGM )

True Gold Resumes Construction at Karma

Fully Funded & on Track to Enter Production in March 2016

VANCOUVER, BRITISH COLUMBIA--(May 19, 2015) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Co mpany") announced today that it has resumed activity at its Karma Gold Project ("Karma" or the "Project") in Burkina Faso. The Company expects to pour first gold at Karma in March 2016.

Specific developments related to the restart of activity include the following:

  • A site clean-up and repair program has begun with a ramp-up to full construction set for the end of the month. Specific activities planned in the coming weeks include the remobilizing and commissioning of the mine fleet, ordering of liners and piping, and surveying of ponds and other locations. The local workforce will be re-engaged as construction accelerates.
  • True Gold and the Government of Burkina Faso will continue extensive communication and discussion with community leaders through a reconstituted Community Liaison Committee.
  • Karma remains fully funded through construction to first gold pour, which is expected in March 2016. True Gold has $31 million in cash, and up to $62 million under our finance facility with approximately $70 million of project cost remaining. The Company continues to have full support from its partners, Franco-Nevada and Sandstorm Gold.

"We are pleased to be returning to work at Karma with the support of the Government of Burkina Faso and leaders in the local community," said Christian Milau, President and CEO, True Gold Mining. "We have said from the beginning of this process that it is our intention to work towards a long-term solution that builds trust with stakeholders in the community and reduces the risk of similar challenges in the future. As we move toward full construction, we remain committed to delivering long-lasting benefits to the local communities and to the country."

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