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DAU.V ·

Desert Gold Announces Renewal of its Djimbala Permit in Western Mali

Corporate Updates

8338 120 Street | British Columbia | Canada | V3W 3N4 | Office +1 (604) 245 6802 | Fax +1 (604) 592 6882

For Immediate Release

TSX.V: DAU

Frankfurt: QXR2

OTC: DAUGF

Desert Gold Announces Renewal of its

Djimbala Permit in Western Mali

Surrey, British Columbia, January 20, 2017, DESERT GOLD VENTURES INC. (“Desert Gold” or the

“Company”) (TSX.V: DAU/FF:QXR2/OTC:DAUGF) is pleased to announce the successful renewal of

the Company’s Djimbala Gold permit in western Mali. The permit is now valid until December 21, 2018.

The Djimbala permit is situated in the Yanfolila

Gold Belt in an area that hosts regional scale

fundamental structures. These structures are

essential in the formation of gold deposits in

West Africa and make the whole permit highly

prospective for the discovery of significant gold

resources.

The prospect is located 30km north of the

Kordieran Project, 40 km north of Avnel Gold’s

Kalana Mine and adjacent to Gold Field’s

Komana Project.

The conceptual target on the strategic Djimbala

project is orogenic-style gold mineralization,

similar to gold mines and other projects in the

Yanfolila Gold Belt. A number of prospects

surround the permit and the structures hosting

the Faliko (Gold Fields), Salona (Gold Fields)

and Niechilela (Gold Fields) prospects extend

into the Djimbala permit. The project has

artisanal gold workings in altered sedimentary

host rock and in elluvial deposits. Seven of the

artisanal workings occur within the sampled

area. The sampling program covers the first of 4

areas prioritized for follow-up exploration. A

total of 1,120 surface soil samples were

collected in the firs t phase of sampling on

Djimbala. The sample lines are oriented north-

south and spaced 200 meters apart. Samples

were collected every 50 meters along these lines,

and at an average depth of 30 centimeters.

8338 120 Street | British Columbia | Canada | V3W 3N4 | Office +1 (604) 245 6802 | Fax +1 (604) 592 6882

The sampling highlights a strong correlation between anomalous gold values and geological structures

identified on aeromagnetic maps. 9 exploration targ ets were identified on the grid. Please refer to the

geochemistry map below. 3 Samples analyzed over 1 gram per tonne of gold with the highest gold value

being 22.6 grams per tonne. The table below summarizes the distribution of gold values.

Number of samples Gold Assay Values (ppb)

539 <10

499 10 to 29

19 50 to 99

16 100 to 999

3 1000 to 22 600

- Total number of samples 1,120

- The Company plans to do detailed infill soil sampling over the 9 exploration targets.

8338 120 Street | British Columbia | Canada | V3W 3N4 | Office +1 (604) 245 6802 | Fax +1 (604) 592 6882

Sample Protocol

Samples were taken from the B soil horizon, genera lly 30cm to 50cm below surface. 2kg of unscreened

material was gathered in the field, placed in calic o bags with unique ticket num bers and shipped to ALS

Mali SARL Bamako laboratory for analysis. The sampl es were assayed by means of fire assay with an

atomic absorption finish. As part of the quality assu rance and quality control program, a standard, blank

and duplicate sample were inserted within every 20 samples submitted to the laboratory. Plots of the

assay results from the standard reference material show that the assay data can be accepted.

Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualif ied Person as defined in NI 43-101, has reviewed

and approved the scientific and technical information contained in this release.

ON BEHALF OF THE BOARD

s/"Jared Scharf"

Jared Scharf, Director

+1 (858) 247-8195

For further information please visit our website www.desertgold.ca or information available on www.SEDAR.com

under the company’s profile.

Certain statements contained in this release may constitute "for ward–looking statements" or "for ward-looking information" (coll ectively

"forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These

statements relate to future events or futu re performance. The use of any of the wo rds “could”, “intend”, “expect”, “believe”, “ will”,

“projected”, “estimated”, “anticipates” and similar expressions a nd statements relating to matters that are not historical fact s are intended to

identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future

events. Actual future results may differ ma terially. In particular, this release cont ains forward-looking information relating to the business of the

Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is ma de as of the

date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future

events or otherwise, except as required by applicable securities laws. Because of the risks, un certainties and assumptions cont ained herein,

investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forwar d-looking

information contained herein.

Neither the TSX Venture Exchange nor its regulation services provi der (as that term is defined in the policies of the TSX Ventu re Exchange)

accepts responsibility for the adequacy or accu racy of this release. This news releas e does not constitute an offer to sell or a solicitation of an

offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the

united states securities act of 1933, as ame nded, and may not be offered or sold in the united states or to the account or bene fit of a U.S. person

absent an exemption from the registration requirements of such act.