VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 23, 2012) – Abzu Gold (“Abzu” or “Company”) (TSX VENTURE:ABS)(OTCQX:ABZUF) is pleased to announce it has signed a strategic investment proposal (“Proposal”) with Stonehouse Construction Pte Ltd (“SHC”). Pursuant to the Proposal and subject to completion of due diligence by SHC and TSX Venture Exchange (the “Exchange”) and shareholder approval, SHC will purchase 16,666,667 units (the “Units”) of Abzu for $0.15 per Unit. Each Unit will consist of one common share and one common share purchase warrant with each warrant exercisable into an additional common share for a period of 12 months at $0.20. Pursuant to the Proposal the parties have agreed that SHC will assume operational management of Abzu’s Nangodi project, which Abzu is earning an interest in pursuant to an option agreement with Kinross Gold.

In addition, SHC will be entitled to appoint two directors to Abzu’s board of directors. SHC will also have the right of first refusal on providing certain mining assets and services to Abzu on competitive market terms. The Proposal is subject to a six week due diligence period during which time the parties will negotiate and finalize the formal agreements and Abzu will commence the process for shareholder and exchange approval. All securities issued pursuant to the private placement will be subject to a four month hold period.