DAU.V · 2017-01-04 12:00:00

Desert Gold is Granted Commercial Gold Exploitation License at its Byumba Permit in Northern Rwanda

Permits & Approvals

TSX-V: DAU

Frankfurt: QXR2

OTC Pink: DAUGF

For Immediate Release

Desert Gold is Granted Commercial Gold Exploitation License at its

Byumba Permit in Northern Rwanda

January 4, 2017 Surrey, British Columbia; Desert Gold Ventures Inc. ("Desert Gold"

and or “the Company") (TSXV: DAU) today announced a major step forward in the

development of the Company's Byumba Gold project in Northern Rwanda. In Q1 of

2016, the Company applied for a commercial mining license at its Byumba gold deposit.

Along with the mining license application, the Company submitted a Plan of Operation

(“PLO”) to the Rwandan Ministry of Natural Resources (“MINIRENA”). The Company

is pleased to announce that MINIRENA, in co-operation with the State Department of

Geology and Mines (“DNGM”), has accepted the Company’s proposal and on December

13, 2016 issued Desert Gold a commercial gold mining license.

Details of Mining License Application

• The new title under the exploitation license will be named Rutare

• The mining license is valid for a period of 10 years with an option to renew

• The Rutare permit covers a 375 hectare block (as shown in map below) and

encompasses the entire gold prospect

• The Rutare permit is located a two hour drive from the capital Kigali accessible

by paved highway

Rutare Exploitation License Boundary Map

Table 1 sets out the Company's mineral resource estimate prepared in accordance with

National Instrument 43-101 ("NI 43-101") which shows ore tonnage of approximately 5.5

million tons at an average grade of 1.48 g/t of gold for a total resource of 265,000 oz Au

using a cut off grade of 0.5 g/t Au.

Summary of Mineral Resource Estimates Prepared in Accordance with NI 43-101

Notes to Mineral Resource Estimate:

• The effective date of the Byumba mineral resource estimate is January 11, 2010.

• Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the

uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be

upgraded to proven and probable mineral reserves.

The Company plans to release a Supplemental Plan of Operation (“SPLO”) later this

quarter that will outline the details of the development at Rutare. The decision to proceed

into production is currently not based on a feasibility study of mineral reserves

demonstrating economic and technical viability. Rather, the decision was based on the

existing data from the 2010 inferred resource, the 2012 drilling campaign and a series of

internal studies conducted by the Company’s engineering and technical team. Over time

the Company aims to demonstrate economic viability as defined under Companion Policy

43-101CP, 4.2(6) – Production Decision.

Desert Gold CEO Sonny Janda commented, "Our goal is to develop the first commercial

gold mine in the country and to become a leading producer in the region. As such, we are

working closely with the Rwandan government and local partners to finalize the

development plan at Rutare. This plan will not only focus on the exploitation of the

existing Byumba resource at Rutare but will also incorporate more drilling for expansion

and growth of the area over time. Moreover, the Company is evaluating other mineral

prospects in the region. We are working closely with our partners in Rwanda to identify

the most prospective opportunities and incorporate them into our larger vision. The

issuance of the gold mining license is a significant milestone for the company. I would

like to thank the Rwandan government and its supporting departments for their active

participation helping Desert Gold throughout the licensing process."

Shaun Dyke, M.Sc. (Eng); P.Geo (#20044), a Qualified 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

"Jared Scharf"

___________________________

Jared Scharf

Director

+1 (858) 247 – 8195

About Desert Gold

Desert Gold Ventures Inc. is an advanced e xploration and development company which holds

mining assets in Mali and Rwanda.

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

www.SEDAR.com under the company’s profile.

This news release contains forward-l ooking statements respecting the Compan y's ability to successfully obtain an

exploitation license for its Byumba permit. These forward-looking statements entail various risks and uncertainties that

could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements

are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ

materially from those contained in such statements, including the inability of the Company to successfully complete and

obtain the necessary permits to develop its operations. These uncertainties and risks include, but are not limited to, the

strength of the capital markets, permitting risk, the price of gold; operational, funding, and liquidity risks; the degree

to which mineral resource estimates are reflective of actual mine ral resources; and the degree to which factors which

would make a mineral deposit commercia lly viable are present; the risks a nd hazards associat ed with mining

operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure

materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are

urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to

update the reasons why actual results could differ from such statements unless required by law.

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.

This news release 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 de scribed herein have not been and will not be registered under the united states

securities act of 1933, as amende d, and may not be offered or sold in the unite d states or to the ac count or benefit of a

U.S person absent an exemption from the registration requirements of such act.

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