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Press release from Business Wire

Renaissance Gold Reports First Quarter 2014 Results

Wednesday, November 13, 2013

Renaissance Gold Reports First Quarter 2014 Results

17:00 EST Wednesday, November 13, 2013

WHITE ROCK, British Columbia (Business Wire) -- Renaissance Gold Inc. (TSX: REN) (“RenGold”) reports financial results for the three months ended September 30, 2013, Quarter 1 (“Q1” of fiscal year 2014). Details of the Company's financial results are described in the unaudited condensed consolidated interim financial statements (the “Financial Report”) and corresponding management discussion and analysis for the same period. These and further details on each of RenGold's projects and activities can be found on the Company's website at www.rengold.com and on the Company's profile on www.sedar.com. All amounts presented are in Canadian dollars unless otherwise stated.

Selected financial data

The following selected financial data is derived from the Financial Report as prepared in accordance with International Financial Reporting Standards.

The consolidated net loss for the three months ended September 30, 2013 was $868,521 (2012 - $1,444,628).

Working capital at September 30, 2013 was $3,609,001 of which $3,633,132 is cash. There are no long-term liabilities.

Total assets at September 30, 2013 are $4,865,042 of which $3,891,288 are current assets and $973,754 are exploration and evaluation assets, equipment and reclamation bonds.

Operations

RenGold is an exploration stage business engaged in the acquisition and exploration of mineral properties located in Nevada and Utah. RenGold's press release dated October 29, 2013 announced the signing of a letter of intent to sell the Company's Argentine subsidiary to its current joint venture partner, Atala Resources Corporation. Currently, RenGold is in the process of closing its subsidiaries in Chile and Spain where exploration and evaluation activities have been discontinued. RenGold's business model is to identify and secure mineral resource properties for which it seeks suitable joint venture partners. Once partners are found, an exploration and option to earn-in agreement is entered into on the property enabling the earn-in partner to obtain an interest by conducting and funding exploration on that property.

The level of the Company's exploration expenditures are largely determined by the strength of the resource markets and by the status of the Company's projects in relation to those markets and its ability to obtain funding partners and investor support for its projects. The Company anticipates there will be less capital available for exploration joint ventures in the immediate future. RenGold is therefore concentrating activities in Nevada and Utah to upgrade current projects and define significant growth potential such as recently demonstrated for the Everson Deposit (RenGold press release October 22, 2013). In addition, RenGold recently announced funding for exploration in southern Nevada (south of 37 degrees latitude) in exchange for a royalty with Callinan Royalties Corporation (RenGold press release October 24, 2013). Taken together, the decreased expenditures, refocus on core activities in Nevada, the upgrading of projects and new funding allows RenGold to continue to provide opportunities to shareholders in a bear market.

RenGold has five properties under exploration earn-in agreements:

Project Funding partner

Nevada:

Gold Star Lynx Resources (US) Inc., a US subsidiary of Cassini Resources Ltd. (ASX:CZI)
 
Spruce Mountain Summit Mining Exploration, Inc., a US subsidiary of Sumitomo Corporation
 
Trinity Silver Liberty Silver Corp. (TSX: LSL)
Argentina:
Meridiano and Covadonga Atala Resource Corporation *

*The Company is in the process of selling its Argentina properties – see discussion below



The highlights of activity by RenGold and its funding partners on its exploration properties during the three months ended September 30, 2013 and to September 30, 2013 (collectively “Q1”), follow in alphabetical order.

Nevada projects with funding partners:

Gold Star   Lynx has been reviewing results and is considering additional drill targets. In order to maintain the property, Lynx is required to spend US$250,000 by February 2014.
 
Spruce Mountain On August 7, 2013, the Company announced the approval of a third round drill budget pursuant to the third year of an exploration earn-in agreement with Summit Mining Exploration, Inc. (“Summit”), a US subsidiary of Sumitomo Corporation. The US$525,000 budget will include 6,900 feet (2,104 meters) of reverse circulation drilling, following up critical targets defined by earlier drilling in 2011 and 2012 that include gold, silver and base metal mineralization. Drilling was completed in October 2013 and included 9 holes totalling 8,160 feet (2,487.2 meters) of RC drilling. Samples are now at the lab and final compiled results should be ready by January 2014.
 
Argentina projects with funding partners:
 
Atala On October 29, 2013, the Company announced that Atala Resources Corporation, a Canadian private company ("Atala"), has signed a letter of intent (the “LOI”) to purchase AuEx Argentina S.A. (“AuEx”), a wholly owned subsidiary of RenGold in exchange for cash, stock and a net smelter return (“NSR”) royalty. On signing a definitive agreement, Atala will issue RenGold 500,000 common shares of Atala and will pay $20,000 in cash. On completion of Atala raising $1 million, RenGold will receive an additional $30,000 in cash. If Atala raises an additional $1 million, RenGold will receive another $50,000 in cash. RenGold will retain a NSR royalty on all properties of 4% minus any underlying NSR royalty (including governmental and underlying ownerships) not to be less than 1% or greater than 3%. The purchase of AuEx will include the Covadonga and Meridiano properties currently subject to an earn-in agreement between Atala and RenGold as well as the El Monte, Gertrudis, and La Rosita properties.
 
Nevada properties being prepared for joint venture
 
During the three months ended September 30, 2013, and up to the date of this MD&A, RenGold conducted reconnaissance exploration programs to prepare these projects for joint venture.
 
Everson On October 22, 2013, the Company announced the results of recent mapping and rock chip sampling support new targets with the potential to significantly expand the Everson Gold Deposit at the Buffalo Canyon Project, Nye County, Nevada. RenGold acquired the property when it became open to staking in late 2012. Based on 40 reverse circulation drill holes in an area 500 meters by 600 meters (about 1,640 by 1,970 feet), the potential quantity of gold in the Everson target area is about 350,000 ounces. This estimate is based on a range from 25,000,000 to 26,000,000 tons at a grade from 0.012 to 0.013 ounces per ton (0.373 to 0.404 grams per ton). The potential quantity and grade is conceptual in nature, and as there has been insufficient exploration to define a mineral resource it is uncertain if future exploration will result in the target being delineated as a mineral resource. The Company is currently looking for joint venture partners.
 
Sinter On August 14, 2013, the Company announced trench sampling and drilling results that confirm the presence of a shallow zone of gold-silver mineralization. The Sinter property lies in the northern part of the Velvet District near other shallow epithermal gold prospects at RenGold's Bunce property and at the historic Velvet Mine, a gold-silver producer in the early 1900's. RenGold consolidated the Sinter property by leasing a mile-square private section from Newmont USA Limited, a wholly owned subsidiary of Newmont Mining Corporation in 2010. This section adjoins 33 claims controlled by lease and staking, all of which combined comprise a total area of approximately 1190 acres (480 hectares). The property is available for joint venture.
 
Work has continued on data compilation and target definition at the Company's projects being prepared for joint venture. Arabia, Big Gossan, Bunce, Fireball Ridge, Fourth of July, Golden Shears, JPW, King Solomon, Leonid, Reef, Rose Mine, and Wood Hills South are currently available for joint venture.
 

Generative

 
Generative exploration is the core of RenGold's business. Property submittal evaluations and generative programs in Nevada and Utah are ongoing but the current focus is on upgrading projects with quality drill intercepts. RenGold's technical team employs leading edge exploration techniques and technology for ore deposit vectoring including: proprietary remote sensing, spatial probability modeling and multivariate statistical analysis. Data is combined with field geology and alteration mineralogy for the purpose of target selection, property acquisition and joint venture development.
 
Callinan On October 24, 2013, the Company announced that it has signed an exploration alliance agreement (the "Agreement") with Callinan Royalties Corporation ("Callinan"). The purpose of the Agreement is to fund prospect generation activities in order for RenGold to attract joint venture partners to projects, while allowing Callinan to generate and acquire royalties.
 
The initial geographic focus will be southern Nevada but may expand to other jurisdictions. The Agreement will be for an initial three year term and calls for Callinan to fund $150,000 of generative exploration during the first year of the Agreement with the option to fund up to $100,000 in each of the two subsequent years.
 
In return for such funding, RenGold will grant Callinan the option to receive a 0.5% NSR royalty on any new projects acquired as a result of the generative exploration work. In addition, Callinan has the option of funding another $150,000 on any of the new projects in exchange for an additional 1.0% (1.5% total) NSR royalty.
 
If RenGold proposes that additional value can be generated after spending $150,000, Callinan may elect to contribute subsequent funding with RenGold on an equally shared basis with no change to Callinan's royalty interest. RenGold may also propose exploration on their existing mineral properties. Callinan will have the option to fund $150,000 in exploration on those projects in return for a 1.5% NSR royalty.

Qualified Person

All technical data disclosed in this press release, including sampling, analytical and test data have been reviewed by the Company's qualified person Mr. Eric M. Struhsacker, M.Sc., and Certified Professional Geologist as recognized by the American Institute of Professional Geologists.

Renaissance Gold Inc.

Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada and Utah. Projects are placed into exploration earn-in agreements with industry partners who provide exploration funding. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire new precious metal exploration projects that are then offered for joint venture.

Renaissance Gold Inc.

By: Richard L. Bedell, President and CEO

For further information, contact:

Richard L. Bedell, 775-337-1545 or rbedell@rengold.com

Eric M. Struhsacker, 775-337-1545 or estruhsacker@rengold.com

This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Renaissance Gold Inc. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Renaissance Gold Inc's management on the date the statements are made. Except as required by law, Renaissance Gold Inc. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
rbedell@rengold.com
or
Eric M. Struhsacker, 775-337-1545
estruhsacker@rengold.com

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