Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) (the “Company”) is pleased to report that underground development commenced as scheduled on November 22, 2012 at its 100%-owned Buriticá project in Antioquia, Colombia. Two working fronts are being advanced simultaneously with an initial goal of providing underground drilling access in order to grow the measured and indicated portion of the mineral resource estimate prepared in accordance with National Instrument 43-101 (“NI 43-101”) for both the Yaraguá and Veta Sur vein systems ahead of a pre-feasibility study in H1 2014. Images reflecting recent development activities at Buriticá are presented below.

As announced on October 22, 2012, the first development face is a 4.5 x 5.0 metre tunnel located in the Higabra Valley at an elevation of 1,150 metres above sea-level. The tunnel will be driven into the hillside for approximately 1,000 metres in a northwest direction before turning due east where it will hit the projection of the Yaraguá vein system, allowing underground infill and depth extension drilling to commence (Figures 1 and 2). Presently, 14.4 metres of steel arch-supported development in oxidized basalts has been completed. It is anticipated that the development will transition shortly into primary basalts, a strong working index host rock for development, and development pace will pick up considerably, as the required installation of steel arches will cease at that time. Underground diamond drilling from this tunnel is expected to commence in Q3 2013.

The second development face is a 3.5 metre x 3.5 metre ramp beside the Veta Sur vein system located at an elevation of 1,700 metres above sea-level (Figure 3). To date, 19.2 metres of steel arch-assisted development has been completed in oxidized andesitic rock. Over the next 10 days, development is expected to pass out of the oxidized rock into primary andesite, with a significant increase in development pace anticipated. Underground definition drilling into the Veta Sur vein system is expected to commence in February 2013.

Furthermore, the Company is planning to initiate a bid process for the construction of a six kilometre switchback road, with construction expected to commence in Q3 2013. The road will connect the existing main paved Buriticá road that traverses the Buriticá project at approximately 1,800 metres above sea-level, with the future infrastructure site in the Higabra Valley at approximately 1,000 metres above sea level (Figure 4).

“I am pleased with the progress to date and impressed with the ability of our development contractors, Mincivil S.A., Estyma S.A., and Latinco S.A., to responsibly and expeditiously mobilize large development-related equipment down difficult terrain,” commented Mark Moseley-Williams, President and COO. “Prior to the calendar year-end, we will announce our 2013 development and exploration plan and, on a go-forward basis, provide regular updates, including photos on our website.”

About Continental Gold

Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc. For additional technical information on the Buriticá project, please refer to the technical report entitled “2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia”, dated November 15, 2012 with an effective date of October 22, 2012, prepared by Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website atwww.continentalgold.com.

In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental commenced construction of the access tunnel in H2 2012, initially providing access for underground drilling and eventually used for commercial production. A Phase IV drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.

The scientific and technical information contained in this press release has been reviewed and approved by Mark Moseley-Williams, President and Chief Operating Officer of the Company, who is a qualified person within the meaning of NI 43-101.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, and timing of the commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms “inferred mineral resources,” “indicated mineral resources,” “measured mineral resources” and “mineral resources” used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves (the “CIM Standards”). The CIM Standards differ significantly from standards in the United States. While the terms “mineral resource,” “measured mineral resources,” “indicated mineral resources,” and “inferred mineral resources” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute “reserves” by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

To view “Figure 1: Future Infrastructure Site and One-kilometre Underground Access Tunnel in the Higabra Valley”, “Figure 2: One-kilometre Underground Access Tunnel in the Higabra Valley”, “Figure 3: Ramp Accessing Veta Sur System”, and “Figure 4: Six-kilometre Switchback Road Connecting Existing Main Paved Road with Future Infrastructure Site in the Higabra Valley”, please visit the following link:http://media3.marketwire.com/docs/continental_gold_fig01-04.pdf

Recent Development Activities at Buriticá:

To view the Steel arch-assisted development and mobilization of jumbo drills at the one-kilometre underground access tunnel in the Higabra Valley, please visit the following link: http://www.marketwire.com/library/20121206-continental_gold_dec6_pic01.jpg

To view the Steel arch-assisted development at the ramp accessing the Veta Sur System, please visit the following link: http://www.marketwire.com/library/20121206-continental_gold_dec6_pic02.jpg