POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR SALAVE UNDERGROUND

February 11, 2019 - Black Dragon Gold Corp. (ASX/TSX-V: BDG) (“Black Dragon” or the “Company”) is pleased to announce the positive results of the Preliminary Economic Assessment (“PEA”) completed on its 100% owned Salave Gold Project (“Salave” or “Project”) located in Asturias in northern Spain. The PEA is based on the recently completed Mineral Resource Estimate completed by CSA Global (See October 25, 2018 News Release). All figures are in United States Dollars unless otherwise stated.

Paul Cronin, Managing Director and CEO commented,

“The completion of the PEA is a major milestone on the path to development of the Salave Project and the metrics support our belief that Salave can potentially generate strong returns for shareholders. It forms the first step in our permitting process, presenting a new optimised process on a zero- discharge basis that minimises the visual and surface impact of the project.

The robust results of this PEA underline the potential economic viability of the current Salave resource to be mined over an initial 14 year mine life, and our successful drilling campaign last year indicates strong potential for growth in mine life at Salave.

This study concludes that Salave can produce over 1.1Moz (560 kt of concentrate averaging over 59 g/t Au), providing a number of marketing options for export and refining, minimising the need for additional plant and equipment, and hence reducing the Project’s footprint. The relatively low upfront capex also opens alternative financing opportunities which will ensure that both shareholders and the local community benefit from the success of this Project.”

KEY PEA OUTCOMES

• Pre-Tax NPV at 5% discount rate: ranges between US$ 239.2 and US$ 353.2 million with base case at US$ 296.2 million.
• After-Tax NPV: ranges between US$ 184.7 and US$ 273.9 million with base case at US$ 230.0 million
• Pre-Tax Internal Rate of Return (“IRR”): between 23% and 35 with base case at 28%
• After-Tax Payback: 3.8 years
• Pre-Production Capital Cost, including contingency: US$ 95.3 million
• Life of Mine (“LOM”) Sustaining Capital Cost: US$19.3 million
• Estimated Average LOM Total Cash Cost: $675-783 / ounce (oz) Au
• Estimated Average LOM All-In Sustaining Costs (“AISC”): $699-807/oz

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