Compass Gold Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 2, 2016) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Compass Gold Corporation (the "Company") (TSX VENTURE:CVB.H) announces its intention to carry out a non-brokered private placement of up to 10,000,000 Units at a price of $0.05 per Unit for gross proceeds to the Company of up to $500,000 (the "Offering").

Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share for a period of nine months at a price of C$0.06 per common share.

The proceeds of the Offering will be used for general working capital purposes.

All securities issued under the Offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The Company may pay finders fees and/or commissions to eligible persons in connection with the Private Placement in accordance with the policies of the Exchange.

Closing of this Offering is subject to the receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE BOARD OF COMPASS GOLD CORPORATION

James Henderson, Chairman