Goldsource Announces Positive Preliminary Economic Assessment on Eagle Mountain Gold Project, Guyana

Ioannis (Yannis) Tsitos, Goldsource's President stated: "We are extremely pleased with the PEA results for this relatively low-risk phase of development for the Eagle Mountain gold project. The results exhibit very attractive Rates of Return. The creativity of the phased construction approach, its modular design and the simplicity of the mining and processing of the low-strip ratio saprolite material have resulted in an optimized development scenario for this deposit. In addition, the inventory of potentially recoverable ounces of gold in the oversize materials and the underlying hard rock resource provide us with a significant 'blue-sky' potential for further development."

N. Eric Fier, CPG, P.Eng, Goldsource's Chief Operating Officer commented: "Through our experience, we have applied the responsible phased-approach business model to the Eagle Mountain gold project in order to minimize initial capital and project risk. This conceptual approach encompasses a "Phase I" starter open cut for mining at 1,000 tonnes per day ("tpd") with subsequent low impact and low cost gravity-only processing. Upon successful completion of Phase I, the Company plans to systematically install and operate three additional similar plants over a four-year schedule with a cumulative rate of 3,500 to 4,000 tpd. Conceptually, additional processing plants will be paid for through operating cash flow. The project has several potential opportunities to accelerate PEA-defined production once initial success in Phase I is achieved."

The Company cautions that the PEA is preliminary in nature in that it is based largely on Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

PRELIMINARY ECONOMIC ASSESSMENT HIGHLIGHTS

The PEA incorporates a gold price of $1,250 per ounce gold. Highlights of the Base Case economic estimates are as follows:

The Eagle Mountain mining and processing schedules are based on a phased-approach model with four phases proposed over four years. Phase I mining rates would be 1,000 tonnes per day (one 12-hour shift, 7-days per week) in year one ramping up to 4,000 tonnes per day by year four. Conventional open cut mining of soft weathered rock (gold mineralized saprolite) is proposed using a team of excavators, bulldozers and wheel-loaders to excavate and separate materials within the open cut with downhill gravity transport by slurry to the processing facility. The stripping ratio is low and estimated at an average of 0.9:1 (waste:ore) over mine life. No blasting or truck hauling is required for mineralized saprolite.

EAGLE MOUNTAIN MINERAL RESOURCE

In 2012, ACA Howe prepared on behalf of Eagle Mountain Gold Corporation ("EMGC"), now a subsidiary of Goldsource, a mineral resource estimate for the Eagle Mountain gold deposit, which had been tested by drill campaigns completed between 1947 and 2011. Neither EMGC nor Goldsource has completed additional drilling since this estimate was completed. ACA Howe has therefore reissued the resource without change for the purpose of the 2014 PEA.

Notes for mineral resource estimate:

MINE PLAN

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Goldsource Announces Positive Preliminary Economic Assessment on Eagle Mountain Gold Project, Guyana