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Press release from Marketwire

Continental Gold Drills 9.9 Metres at 53.11 g/t Gold & 109.9 g/t Silver and 3.5 Metres at 76.72 g/t Gold & 216.4 g/t Silver at the Buritica Gold Project

Tuesday, December 21, 2010

Continental Gold Drills 9.9 Metres at 53.11 g/t Gold & 109.9 g/t Silver and 3.5 Metres at 76.72 g/t Gold & 216.4 g/t Silver at the Buritica Gold Project07:00 EST Tuesday, December 21, 2010TORONTO, ONTARIO--(Marketwire - Dec. 21, 2010) -Continental Gold Ltd. ("Continental Gold" or the "Company") (TSX:CNL)(OTCBB:CGOOF) is pleased to announce further diamond drilling results from the Yaragua and Veta Sur Systems at its Buritica gold project in Antioquia, Colombia. To date, 45,000 metres of diamond drilling have been completed on the property as part of a program which will include an additional minimum of 60,000 metres in 2011. Highlights Among multiple vein and breccia intercepts, drill-holes BUUY-48 and BUUY-51 in the Yaragua System cut 3.5 m @ 76.72 g/t gold and 216.4 g/t silver and 2.7 m @ 60.53 g/t gold and 55.0 g/t silver, respectively An intercept of 126.9 g/t gold and 92.0 g/t silver over 0.4 m in BUUY -46 is the deepest mineralization drilled to date at Buritica and represents a newly discovered vein system The mineralized intersections in the Yaragua System extend the high grade vein system to over 500 metres along strike and 550 vertical metres. The Yaragua System remains open along strike to the west and at depth BUUY-44 intersected 9.8 m @ 13.93 g/t gold and 69.6 g/t silver in the Murcielagos family of veins in eastern portion of Yaragua Hole BUUY-130 cut 9.9 m @ 53.11 g/t gold and 109.9 g/t silver in the Veta Sur System approximately 35 metres above the previously reported bonanza grade intersections in holes Busy-79 (14.3 m @ 446 g/t Au and 166 g/t Ag) and Busy-131 (17.9 m @ 113.8 g/t Au and 112.4 g/t Ag), extending the central high grade core of this system Details Continental Gold's 100%-owned, 18,000-hectare Buritica gold project in Colombia is characterized by widespread, high-grade gold mineralization in multiple vein packages as well as extensive gold-in-soil anomalies. Drilling to date has focused on the Yaragua and Veta Sur vein systems where a mix of infill and step-out drilling has defined 17 individual veins along 550 metres of strike at Yaragua and 400 metres of strike at Veta Sur, both of which are open along strike to the west and at depth.Total surface and underground diamond drilling on the property since its discovery in 2008 is over 45,000 metres. The 2011 drilling program will begin with eight diamond drills totaling a minimum of 60,000 metres.Yaragua SystemThe Yaragua System consists of numerous semi-parallel, steeply-dipping base metal- carbonate type gold veins that occur within a 150-metre wide structural corridor over 500 metres of strike length and open to the west. Surface and underground drilling has tested up to 500 vertical metres of the system and the veins are open below this depth, some at bonanza grades. The underground diamond drill holes summarized in Table 1 tested various portions of the vein package along 400 metres of strike.BUUY-44, an oblique drill-hole, intersected substantial mineralized widths in the eastern part of the Yaragua corridor. These intersections appear to correlate with high grade sampling of a vein of the Murcielagos family or Vein B along about 90 metres on Level 3, some 60 metres to the east and 50 metres higher than the BUUY-44 intercepts, demonstrating a robust, potentially mineable vein in this area.Similarly, BUUY-46 was drilled at a steep angle to the southeast, testing the depth extension of mineralization in the western portion of Yaragua. It encountered several veins including the deepest mineralization seen to date on the property at elevations of 1110 - 1150 metres, more than 550 metres below the highest known Yaragua mineralization. The 126 g/t Au intercept indicates that the Yaragua system may generate high grades over substantial vertical extents, typical of world-class carbonate-base metal vein systems. The deep intercepts in BUSY-46 are to the south of the Murcielagos vein family and represent a newly discovered vein system.BUUY-47 through 51 were drilled on a single fence to test the western portion of the Yaragua vein family. All of the holes intersected multiple veins, including 3.50m @ 76.72 g/t gold with 216 g/t silver and 2.70m @ 60.53 g/t gold with 55 g/t silver on the San Antonio Vein or Vein C subzones. These intercepts were the deepest to date in these subzones and extended the vertical extent of high grade gold grade to over 350 metres. Other tabulated intercepts in the drill fence are correlated with Vein B and the Murcielagos family of veins. Moreover, the Yaragua breccia intercepts in each of the drill holes exhibited multiple intervals of lower grade (2-3 g/t gold) mineralization.All intersections on this fence of drill holes were within or to the west of the north-south trending Diatreme Fault zone and confirm that the vein package is open to west of the fault zone. New underground development is planned for early 2011 to provide drill platforms for testing the veins along this new western extension.Table 1 – Yaragua System Diamond Drilling ResultsHole IDFromToIntervalGoldSilverZincSubzone(m)(m)(m)(g/t)(g/t)(ppm)BUUY-44166.51703.513.0422.38407176.21869.813.9369.67711Murcielagosincluding180183.93.926.43152.813637family188.8189.40.631.513483BUUY-4601.61.67.851.6885Yaragua Breccia6.459.953.56.25152.514514204.7205.50.835.193817200Murcielagos family363.2363.60.4126.919210900New vein397.5399.92.46.98361190New veinBUUY-47808337.143.9842Murcielagos family90.6596.25.557.056.312291107.51168.55.513.72569including108.5113.65.17.973.8919184.95185.30.35111.926347Vein B231.52364.515.517.4788Vein C243.6244.450.8545.9311901BUUY-481114.83.85.9231.62708Murcielagos family57.77921.33.024.85431Breccia12012448.4451180New vein200.52043.576.72216.42374Vein CBUUY-4960.173.513.46.545.16646breccia/ Murcielagosincluding64.570.5612.766.2108328586113.754.91823New Vein16116768.4511.31623Vein Cincluding165167222.9327.24213BUUY-5047.749.51.823.7412.19379Murcielagos family58.661.653.054.115.2931New Vein78.1581.253.15.012.52804Vein BBUUY-5199.6116.416.84.113.93053brecciaincluding100.5102.5213.756.8390412613154.11.91053Murciellagos family134144.410.43.63.53567184.83185.320.4949.38541247Vein B233235.72.760.5355761Vein C266.8268.31.59.48.4981280.3286.66.36.429.62798Sofiaincluding280.3282.11.815.98245134288.8289.10.321.241278196(a)BUSY- sequence drilled from the surface, BUUY- sequence from underground(b)True widths not known but estimated at 50% or higher of the quoted intercept(c)Grades are uncut & an external grade cutoff of 1.0 g/t Au used to determine intersection thickness & gradeVeta Sur SystemDrilling continued on the Veta Sur family of veins which has been intersected along 400- metres of strike length to a maximum depth of 350 metres (1300 metre elevation). The Veta Sur System is open to the west and at depth. Table 2 summarizes recent results, which are highlighted by 9.90m @ 53.11 g/t gold and 109 g/t silver in the main vein in hole Busy-30. This intersection is on the same section approximately 35 metres vertically above the previously reported bonanza grade gold intersections in holes Busy-79 and 131. Infill drilling on a 25-metre grid and step-out drilling continue on the Veta Sur system and a large amount of additional data will be reported in the coming weeks.Table 2 – Veta Sur System Diamond Drilling ResultsHoleFromToIntervalGoldSilverZincSubzoneID(m)(m)(m)(g/t)(ppm)(ppm)Busy-127147.50152.605.103.06101.5417181.30197.3016.004.8916.0613Veta Surincluding184.50185.501.0021.9939.0439and188.80190.701.9010.1938.6322223.20224.501.309.288.35213Busy-130163.50173.409.9053.11109.91594Veta Surincluding168.80172.503.70135.33267.53441205.35206.100.7521.8422.0234(a)BUSY- sequence drilled from the surface, BUUY- sequence from underground(b)True widths not known but estimated at 50% or higher of the quoted intercept(c)Grades are uncut and an external grade cutoff of 1.0 g/t Au used to determine intersection thickness and grade"Our Company has made significant progress since listing on the TSX in April of this year," commented Ari Sussman, President and CEO of Continental Gold Ltd. "The mineralized systems at Buritica continue to grow both laterally and vertically. The high-grade intercept in BUUY 46 validates our plan to begin construction of a production scale ramp at the valley floor in 2011. The underground access from the ramp will enable the Company to drill test the vertical extent of Buritica up to 1000 metres." Technical Information The results of the Company's drilling program have been reviewed, verified and compiled by Vice President Exploration, Stuart Moller P.Geol., a qualified person for the purpose of NI 43-101. Mr. Moller has over 30 years of mineral exploration experience and is a Licensed Professional Geologist in the Province of British Colombia and a Fellow of the Society of Exploration Geologists.The company utilizes an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one half shipped to a sample preparation lab in Medellín run by SGS Colombia. Samples are then shipped for analysis to SGS certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME laboratories in Vancouver and/or Inspectorate Labs in Reno. About Continental Gold Limited Continental Gold Limited is an advanced-stage exploration company with eight gold projects covering 200,000 hectares in Colombia. Spearheaded by a management team with over 40 years of exploration and mining experience in South America, the Company has begun an aggressive exploration program on its extensive portfolio of properties with a focus on its flagship high-grade gold project, Buritica and the highly prospective Berlin gold project. Additional details on the Buritica project and the rest of Continental Gold's suite of gold exploration properties is available at www.ContinentalGold.com.Forward-Looking Statements"This press release contains or refers to forward-looking information, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions, and is based on current expectations that involve a number of business risks and uncertainties. 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."To view the first figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/cnl1221fig1.pdf.To view the second figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/cnl1221fig2.pdf.To view the third figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/cnl1221fig3.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Elina ChowContinental Gold LimitedDirector, Investor Relations+1 416.643.7638info@continentalgold.comwww.continentalgold.com