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BRON.V ·

Damara Extinguishes Debt by Issuance of Shares

Share Capital & Compensation

110-2300 Carrington Road, West Kelowna, BC V4T 2N6

Telephone (250) 768-1168 Fax (250) 768-0020 Web Site: www.damaragoldcorp.com

NEWS RELEASE

Damara Extinguishes Debt by Issuance of Shares

March 7, 2017 TSX-V: DMR

DAMARA GOLD CORP. (TSX-V:DMR) (“Damara” or the “Company”), reports that as announced on

January 17, 2017, the Company has issued a total of 4,287,323 common shares at a price of $0.05

per common share to extinguish debt in the aggregate of $214,366 effective March 6, 2017 (the “Debt

Settlement”. As previously disclosed with the completion of the Debt Settlement, Colorado Resources

Ltd now holds a 19.71% interest in the common shares of Damara.

As Damara and Colorado have two common directors the Debt Settlement constituted a “related party

transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security

Holders in Special Transactions (“MI 61-101”), which is incorporated into Policy 5.9 of the Exchange

Corporate Finance Manual.

The independent board members of the Company dete rmined that neither the value of the shares

issued to Colorado, nor the aggregate debt settled in connection with the Debt Settlement exceeded

25% of the Company’s market capitalization as of the date hereof. The Company relied on the

exemptions from the valuation and minority shar eholder approval requirements of MI 61-101

contained in sections 5.5(a) and 5.7(a) of MI 61-101 as neither the fair market value of the Debt

Shares nor the debt exceeds 25% of the Company’s market capitalization.

The common shares are subject to a four month plus one day hold period that will expire on July 7,

2017.

About Damara

Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors

seasoned in the mineral exploration industry with extensive and successful international experience

with a focus on identifying and acquiring prospective and under-explored gold properties worldwide.

ON BEHALF OF THE BOARD OF DIRECTORS OF DAMARA

“Larry Nagy”

Larry Nagy, Chief Executive Officer

For additional information visit Damara’s website at www.damaragoldcorp.com or contact:

Damara Gold Corp.

Larry Nagy

Chief Executive Officer or

Terese Gieselman

Chief Financial Officer

Ph: (250-768-1168)

NR: 17-02

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of

the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements Regarding Forward-Looking Information

Certain statements contained in this news release may co ntain forward-looking information within the meaning of

Canadian securities laws. Such forward- looking information is identified by wo rds such as “estimates”, “intends”,

“expects”, “believes”, “may”, “will” and include, without limitation, statements regarding the company’s plan of

110-2300 Carrington Road, West Kelowna, BC V4T 2N6

Telephone (250) 768-1168 Fax (250) 768-0020 Web Site: www.damaragoldcorp.com

business operations (including plans for progressing asse ts), estimates regarding mine ral resources, projections

regarding mineralization and projected expenditures. There ca n be no assurance that such statements will prove to

be accurate; actual results and future events could differ materially from such statements. Factors that could cause

actual results to differ materially in clude, among others, metal prices, risks inherent in the mining industry,

financing risks, labour risks, uncertain ty of mineral resource estimates, equipment and supply risks, title disputes,

regulatory risks and environmental co ncerns. Most of these factors are ou tside the control of the company.

Investors are cautioned not to put undue reliance on forwar d-looking information. Except as otherwise required by

applicable securities statutes or re gulation, the company expressly disclaims any intent or obligation to update

publicly forward-looking information, whether as a result of new information, future events or otherwise.