GGD.TO · 2018-06-30 12:00:00

GoGold Reports Results for Quarter ending

Corporate Updates

June 30, 2018

Trading Symbol: TSX: GGD

Shares Outstanding: 171,776,481

HALIFAX

Aug. 14, 2018

/CNW/ -

GoGold Resources Inc. (TSX: GGD) ("GoGold", "the

Company")

reports the sale of 382,150 silver equivalent ounces in the quarter that generated

revenue of

$6.3 million

, which represents a 35% increase over the same period in 2017. The

average realized silver price of

$16.46

in the quarter ending

June 30, 2018

compared to

$16.26

the same period in 2017. (All amounts are in U.S. dollars)

The Company stacked 447,193 tonnes on the leach pad which represents a 52% increase from the

third quarter of 2017. Management foresees an increase in production in future quarters due to the

higher stacking rates and more fresh tailings coming under leach. Adjusted cash costs per silver

equivalent ounce for the quarter were stable at

$10.30

per silver equivalent ounce which was up only

7% from the second quarter 2017.

Year to date the Company has net income of

$26.4 million

and total comprehensive income of

$38.7

million

for the nine months ended

June 30, 2018

. The Company reports a net loss of

$3.6 million

for

the three months ended

June 30, 2018

which is driven predominately by an inventory net realizable

value adjustment of

$3.7 million

recorded in the quarter.

As a result of the sale of

Santa Gertrudis

November 2017

the company's working capital has

improved by

$50.9 million

$40.6 million

during fiscal 2018. Shareholders equity has also improved

$39.4 million

$127.2 million

during the year. The Company remains in strong financial condition

with

$11.9 million

in cash, a royalty on

Santa Gertrudis

that management believes could be sold for

$12

-15 million, inventory stacked on the heap leach pad with recoverable metal worth approximately

$40 million

, and no debt. In addition to the strong balance sheet, Parral is generating earnings

before interest, taxes, and depreciation and has a mine life of approximately 10 years.

Summarized Consolidated Financial Information

Three months ended

June 30

Nine months ended

June 30

(in thousands USD, except per share amounts)

2018

2017

2018

2017

Revenue

6,289

4,651

17,524

12,601

Production costs, except amortization and depletion

6,348

2,753

14,236

6,986

Mine site EBITDA

(59)

1,898

3,288

5,615

Net (loss) income

(3,626)

(355)

26,370

916

Basic net earnings per share

(0.02)

0.00

0.15

0.01

Adjusted for discontinued operations associated with the sale of Santa Gertrudis.

Production costs in the quarter ended June 30, 2018 includes a negative net realizable value adjustment of $2,412.

Earnings before interest, taxes, depreciation and amortization

Key Performance Indicators

Three months ended

June 30

Nine months ended

June 30

2018

2017

2018

2017

Total tonnes stacked

447,193

293,047

1,248,503

887,072

Adjusted AISC per silver equivalent ounce

14.09

20.17

15.58

12.54

Adjusted cash cost per silver ounce

3,4

6.09

2.24

8.11

0.14

Adjusted cash cost per silver equivalent ounce

10.30

9.62

11.20

8.82

Realized silver price

16.46

16.26

16.13

16.45

Key performance indicators are unaudited non-GAAP measures

Gold is converted using actual realized prices

Using Gold as a by-product credit

Adjusted for net realizable value adjustment, see reconciliation in MD&A

This news release should be read in conjunction with the condensed consolidated interim financial

statements for the three and nine months ended

June 30, 2018

, notes to the financial statements,

and management's discussion and analysis for the three and nine months ended

June 30, 2018

which have been filed on SEDAR and are available on the Company's website.

Mr.

Robert Harris

, P.Eng. is the qualified person as defined by National Instrument 43-101 and is

responsible for the technical information of this release.

About GoGold Resources

GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on

operating, developing, exploring and acquiring high quality projects in

Mexico

. The Company's Parral

Tailings project produces silver and gold at a low cash cost. Headquartered in

Halifax, NS

, GoGold

is building a portfolio of low cost, high margin projects. For more information visit

gogoldresources.com

CAUTIONARY STATEMENT:

The securities described herein have not been, and will not be, registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and

may not be offered or sold within

the United States

or to, or for the benefit of, U.S. persons (as

defined in Regulation S under the U.S. Securities Act) except in compliance with the registration

requirements of the U.S. Securities Act and applicable state securities laws or pursuant to

exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to

buy of any of GoGold's securities in

the United States

This news release may contain "forward-looking information" as defined in applicable Canadian

securities legislation. All statements other than statements of historical fact, included in this release,

including, without limitation, statements regarding the Parral tailings project, future operating

margins, future production and processing, and future plans and objectives of GoGold, constitute

forward looking information that involve various risks and uncertainties. Forward-looking information

is based on a number of factors and assumptions which have been used to develop such information

but which may prove to be incorrect, including, but not limited to, assumptions in connection with the

continuance of GoGold and its subsidiaries as a going concern, general economic and market

conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the

Parral project. There can be no assurance that such information will prove to be accurate and actual

results and future events could differ materially from those anticipated in such forward-looking

information.

Important factors that could cause actual results to differ materially from GoGold's expectations

include exploration and development risks associated with GoGold's projects, the failure to establish

estimated mineral resources or mineral reserves, volatility of commodity prices, variations of

recovery rates, and global economic conditions. For additional information with respect to risk

factors applicable to GoGold, reference should be made to GoGold's continuous disclosure

materials filed from time to time with securities regulators, including, but not limited to, GoGold's

Annual Information Form. The forward-looking information contained in this release is made as of the

date of this release.

Cautionary non-IFRS Measures and Additional IFRS Measures

The Company believes that investors use certain non-IFRS and additional IFRS measures as

indicators to assess mining companies. They are intended to provide additional information and

should not be considered in isolation or as a substitute for measures of performance prepared with

IFRS. Non-IFRS and additional IFRS measures do not have a standardized meaning prescribed

under IFRS and therefore may not be comparable to similar measures presented by other

companies.

Additional IFRS measures that are presented on the face of the Company's consolidated statements

of comprehensive income include "Operating income (loss)". These measures are intended to

provide an indication of the Company's mine and operating performance. "Cash flow from operating

activities before changes in non-cash working capital" is a non-IFRS performance measure that

could provide an indication of the Company's ability to generate cash flows from operations, and is

calculated by adding back the change in non-cash working capital to "Net cash used in operating

activities" as presented on the Company's consolidated statements of cash flows. Per ounce

measures are calculated by dividing the relevant mining and processing costs and total costs by the

ounces of metal sold in the period. "Cash costs per ounce" and "all-in sustaining costs per ounce" as

used in this analysis are non-IFRS terms typically used by mining companies to assess the level of

gross margin available to the Company by subtracting these costs from the unit price realized during

the period. These non-IFRS terms are also used to assess the ability of a mining company to

generate cash flow from operations. There may be some variation in the method of computation of

these metrics as determined by the Company compared with other mining companies. In this

context, "cash costs per ounce" reflects the cash operating costs allocated from in-process and dore

inventory associated with ounces of silver and gold sold in the period. "Cash costs per ounce" may

vary from one period to another due to operating efficiencies, grade of material processed and

silver/gold recovery rates in the period. "All-in sustaining costs per ounce" include total cash costs,

exploration, corporate and administrative, share based compensation and sustaining capital costs.

For a reconciliation of non-IFRS and IFRS measures, please refer to the Management Discussion

and Analysis dated

August 10, 2018

for the three and nine months ended

June 30, 2018

, as

presented on SEDAR.

SOURCE

GoGold Resources Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2018/14/c2592.html

%SEDAR: 00029249E

For further information:

Steve Low, Corporate Development, GoGold Resources, T: 416 855

0435, E: [email protected]

CO: GoGold Resources Inc.

CNW 08:30e 14-AUG-18

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