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Drill Program Planned ON New Targets Keyhole GOLD Option Ghana

Exploration Programs

DRILL PROGRAM PLANNED ON NEW TARGETS

KEYHOLE GOLD OPTION GHANA

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

FOR IMMEDIATE RELEASE January 18, 2017

Vancouver, British Columbia – January 18, 2017 – Asante Gold Corporation ( CSE:ASE/

FRANKFURT:1A9/OTC:ASGOF) ("Asante” or the “ Company") announces that it has

compiled the data from the first of a series of ground geophysical IP (Induced

Polarization/Resistivity) surveys to be completed at its Keyhole Gold option property in Ghana.

Seven distinct linear trending IP zones have been outlined which are interpreted to represent

areas with increased sulfide mineralization. Sulfide concentrations (relative high IP values) in

this structurally favourable Keyhole area are considered to be prime drill targets. The IP map is

available at: http://www.asantegold.com/assets/img/memipnr18jan17.jpg and the Resistivity map at:

http://www.asantegold.com/assets/img/memres-_nr18jan17.jpg .

IP was chosen as the preferred technique to outline high potential drill targets given the strong

association of gold with sulfi de mineralization in the Asankrangwa gold belt, such as at the

Asanko (Obotan) gold mine located 40 km along the belt to the northeast. The subdued

topography, extensive and locally thick alluvial cover, and heavy weathering and laterization

mask mineralization from detection by the direct prospecting , trenching and soil geochemical

methods which were used by previous explorers in the area.

Drill collars to test the outlined targets for gold mineralization are being selected for a proposed

1200 metre diamond drilling program, planned to commence in early February 2017.

One of the proposed high IP drill targets corresponds with large angular quartz reef float noted in

the heavily galamsey disturbed area of the historical MEM showing – where significant gold

values were previously reported: http://www.asantegold.com/assets/img/img_20161210_001315.jpg .

Please see our September 18, 2016 news release http://www.asantegold.com/news/asante-acquires-

strategically-located-keyhole-gold-project-ghana and website http://www.asantegold.com/projects/keyhole-option

for further information.

On behalf of the Board,

"Douglas R. MacQuarrie"

President and CEO

2

Scientific and technical information contained in this news release has been supervised, reviewed and approved by

Douglas R. MacQuarrie, P.Geo. (B.C.) Geology & Geophysics, the President and CEO of the Company, who is a

qualified person (“QP") under NI 43-101. The IP survey was completed and data compiled by Fred Akosah, MSc.

Geophysics, a registered geophysicist - Ghana Institution of Geoscientist’s (GhIG) utilizing a 2.5kw time domain IP

system; pole dipole configuration n=1 to 6 ; 50 metre dipole separation; 25 metre station separation.

About Asante Gold Corporation

Asante and BXC Company (Ghana) Limited have entered into a C$19.5 million joint venture, subject to final

closing, to develop our Kubi Gold Mining Leases as a potential near term underground operation; and Asante is

exploring the Keyhole and Betenase options, the Fahiakoba and other concessions, all adjoining or along strike of

major gold mines near the centre of Ghana’s Golden Triangle. Additional information is available on our web site at:

www.asantegold.com

For further information please contact:

Douglas MacQuarrie, President and CEO, tel: +1 604-558-1134; E-mail: [email protected]

Doreen Kent, Shareholder Communications, tel: +1 604-948-9450; E-mail: [email protected]

Kirsti Mattson, Media Relations, tel: +1 778-434-2241; E-mail: [email protected]

Rebecca Greco, Business Development, tel: +1 416-822-6483; E-mail: [email protected]

Florian Riedl-Riedenstein, Director; European Investor Relations, E-mail: [email protected]

This news release contains statements of forward -looking information (or "FLI") including those in respect of future

exploration, joint venture, development, permitting and mining at Kubi and the other properties in which the

Company has an interest. FLI involves risks and uncertainties which could cause actual results to vary from the FLI..

The Company undertakes no obligation to update FLI except as required by applicable law. Such information

represents management's best judgment based on information currently available. Readers are advised not to place

undue reliance on FLI.

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the

adequacy or accuracy of this release.