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TSG.V ·

Tristar Drilling Extends Cds TWO Kilometers; Warrants Exercised

Drill Results Share Capital & Compensation

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January 6, 2017 Trading Symbol: TSG-TSX.V

TRISTAR DRILLING EXTENDS CDS TWO KILOMETERS; WARRANTS EXERCISED

TriStar Gold Inc. (the “Company” or “TriStar”) is pleased to announce that a total of 13.2 million warrants

for total proceeds of C$ 2.05 million have been exercised since October 1, 2016. This includes warrants

with expiration dates of December 21, 2016 (exercise prices of C$0.13 and C $0.20) and January 6, 2017

(exercise price of C $0.20). As at January 6 , 2017, the Company has 138,353,376 common shares issued

and outstanding.

The Company has now received all of the assay results from new drill holes in the Esperança South area of

the Castelo de Sonhos gold project. These assays confirm that gold mineralization now extends at least two

kilometers to the southwest beyond the resource area defined by the Company in 2014.

Table 1 shows the significant intervals for all the drill holes completed in Esperança South during the 2016

drill program.

Hole ID Thickness and gold grade Downhole depth Grade x Thickness

CSH-16-144(1) 3.10 m @ 3.90 g/t 121.80 ‒ 124.90 m 12.1 gm/t

CSH-16-145(1)

3.90 m @ 0.70 g/t

1.85 m @ 1.10 g/t

2.00 m @ 4.96 g/t

12.70 ‒ 16.60 m

163.40 ‒ 165.25 m

177.20 ‒ 179.20 m

Total: 7.75m @ 1.89 g/t 14.7 gm/t

CSH-16-146(1) 2.10 m @ 7.51 g/t 144.90 ‒ 147.00 m 15.8 gm/t

CSH-16-(1) 1.80 m @ 0.63 g/t

4.10 m @ 3.68 g/t

65.10 ‒ 66.90 m

182.30 ‒ 186.40 m

Total: 5.90m @ 2.75 g/t 16.2 gm/t

CSH-16-149 1.85m @ 3.28 g/t 67.2 – 69.05 m 6.1 gm/t

CSH-16-150 1.95m @ 1.95 g/t 21.85 – 23.80 m 3.8 gm/t

2016 Southwestern extension average: 3.78 m @ 3.03 g/t 11.4 gm/t

2014 resource area average: 4.14 m @ 2.43 g/t 10.1 gm/t

CSH-16-151

North of Esperança South, see Figure 2

2.00 m @ 1.12 g/t

2.00 m @ 0.71 g/t

63.80 ‒ 65.80 m

214.35 ‒ 216.35 m

Total: 4.00m @ 0.92 g/t 3.7 gm/t

Table 1. Significant gold intervals from all holes completed i n Esperança South in 2016. Drill holes were drilled

towards an azimuth of 140 degrees (except Hole CSH-16-151, which has an azimuth of 90 degrees), with a dip of 55

degrees. The downhole intersections are approximately true width of the mineralization. (1) indicates holes previously

released.

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Mr. Nick Appleyard, TriStar’s President and CE O, commented: “The results from the Esperança South

drilling have validated the exploration target model released earlier this year . We now know that in

Esperança South alone the strike length of near -surface mineralization is two kilometres longer than

reported in 2014. We are looking forward to continued drill results from the northern extension of Esperança

Center, and incorporating these results into the PEA scheduled for 2017.”

Figure 1 shows the new drilling on the south west limb of the Castelo de Sonhos deposit. The drill -tested

strike of mineralization has now been extended by approximately two kilometers, with grades and

thicknesses very similar to those in the 2014 mineral resource estimate. Infill dri lling will be required to

calculate a new resource estimate, it is anticipated that this drilling will be start early in 2017 using Reverse

Circulation (RC). Petrophysics and televiewer will be used in the RC holes to assist lithology logging, and

to provide marker horizons for defining the stratigraphy within the 250m-thick conglomerate band, subject

to a successful testing of the technology onsite in February.

Figure 1. The southwestern limb of the Castelo de Sonhos deposit, showing the footprint of the 2014 resource estimate

in blue, pre-2016 drill holes in light blue, and new 2016 drill holes in green.

Hole CSH-16-148 was abandoned when rods became stuck in the hole at 80m, well short of its target length;

this hole was re- drilled as CSH-16-150. Hole CSH-16-151 was drilled on the northern end of Esperança

South (Figure 2).

Both core drill rigs have been drilling the northern extensions of Esperança Center, the locations of the drill

holes are shown in Figure 2, this drilling will be completed in early January, with assay results expected

soon after.

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Figure 2. The Esperança Center portion of the Castelo de Sonhos deposit, showing the footprint of the 2014 res ource

estimate in blue, pre-2016 drill holes in light blue, and new 2016 drill holes in green.

Sample analysis procedures and QA/QC protocols

Sample preparation and analytical work for the Castelo de Sonhos drilling program were carried out by

SGS Geosol in Parauapebas, Para State (sample preparation) and Belo Horizonte, Minas Gerais (analysis),

an ISO 9001:2008 and 14001:2004 certified laboratory which employs industry -standard analytical

methods. As part of TriStar´s QA/QC protocol, standard samples and blanks were inserted into the sample

processing stream at a rate of one per 10 samples. Duplicate and alternate laboratory check samples also

form part of this sampling protocol.

TriStar's Vice-President, R. Mohan Srivastava (P.Geo.), is the QP for this press release and has prepared or

supervised the preparation of the scientific or technical information in this press release.

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About TriStar:

TriStar Gold is an exploration and development company focused on precious metals properties in the

Americas that have potential to become significant producing mines. The Company’s current flagship

property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture

Exchange under the symbol TSG. Further information is available at www.tristargold.com.

For further information, please contact:

TriStar Gold Inc.

Nick Appleyard

President and CEO

480-794-1244

[email protected]

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. No stock exchange, securities commission or other

regulatory authority has approved or disapproved the information contained herein.

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation

which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securit ies

Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology

such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results

“will” occur. Forward looking statements in this press release include, the scope and success of the planned exploration program

at the Castelo de Sonhos project and the Company's opinion that it has clear title to the Castelo de Sonhos property Such forward-

looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject

to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such

forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such

assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future re sults,

achievements or position expressed or implied by those forward -looking statements. Risks, uncertainties and other factors that

could cause the Company's plans to change include changes in demand for and price of gold and other commodities (such as fuel

and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic develop ments

in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that

actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company’s

projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the

possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connec tion

with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks

of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and min ing

business. Although management of the Company has attempted to identify important factors that could cause actual results to differ

materially from those contained in forward- looking statements or forward-looking information, there may be other factors that

cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise

any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable

securities laws.