Ashanti Gold Announces Mobilization on Kossanto East

Vancouver, British Columbia--(Newsfile Corp. - May 17, 2017) - Ashanti Gold Corp. (TSXV: AGZ) ("Ashanti" or the "Company") is pleased to announce it has begun mobilization to drill on the Kossanto East project in Mali (the "Project").

The Project is a 66.41 km² concession in the prolific Kenieba Inlier, the northwestern-most exposure of Birimian rocks in West Africa. The Project has six known pods of mineralization. Two have been partially explored by past operator, Alecto Minerals PLC. Ashanti's plan is to extend out and add data points to the existing geological model and to drill untested mineralization pods. The Kenieba Inlier is a major geological province for gold mineralization. Over the last twenty five years more than 40M ounces of gold has been discovered in proximity to key structures resulting in the construction of multiple mines, including the world class Loulo, Sadiola, Yatela, Gounkoto, Segala and Tabakoto (see Figure 1).

Currently, the Company is in the process of building a camp on site for its crew (see Pictures 1 - 3), and the anticipated work will include both diamond and reverse circulation drilling for end-May going into June.

Picture 1

To view an enhanced version of this graphic, please visit:
http://orders.newsfilecorp.com/files/853/26833_picture1.jpg

Picture 2

To view an enhanced version of this graphic, please visit:
http://orders.newsfilecorp.com/files/853/26833_picture2.jpg

Picture 3

To view an enhanced version of this graphic, please visit:
http://orders.newsfilecorp.com/files/853/26833_picture3.jpg

Figure 1. Geologic map of the Kenieba Inlier, the most northwest extent of Birimian rocks in West Africa. The Kossanto East Project is situated at the convergence of the Main Transcurrent Shear Zone and the Senegal-Mali Shear zone offering a rich structural environment for the formation of gold deposits. (map adapted from Lawrence, et al., 2013; Economic Geology v.108,pp. 199-227. Gold ounces from Annual Reports and various on-line sources.)

To view an enhanced version of this graphic, please visit:
http://orders.newsfilecorp.com/files/853/26833_figure1.jpg

Ashanti has the right to earn 65% of Alecto's interest (after including the Mali State carried interest of 10%, Ashanti ownership of the property upon completion of the earn-in agreement will be 58.5%) in the Project by completing a Preliminary Feasibility Study ("PFS") within 36 months with the right to extend the Option Period to complete PFS by an additional 12 months for a cash payment of US$280,000.

ABOUT ASHANTI GOLD

Ashanti is a gold-focused, exploration and development company with projects in the northern Ashanti Belt of Ghana and the Kenieba Belt of Mali. The Company targets premier projects where it has a competitive advantage due to past work experience of the team and specific project know-how.

On Behalf of the Board of Directors of
ASHANTI GOLD CORP.

"Tim McCutcheon"

Tim McCutcheon
CEO

For further information, please contact:
Ashanti Gold Corp.
2300 - 1177 West Hastings Street
Vancouver BC, V6E 2K3
Phone: 604-638-3847

Qualified Person and Quality Control/Quality Assurance

Dr. Paul Klipfel, CPG (AIPG certification #10821), Ashanti's COO and Chief Geologist is a Qualified Person as defined by Canadian NI 43-101 and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Klipfel is responsible for all aspects of the work including the Quality Control/Quality Assurance programs. Dr. Klipfel is not an Independent Person, as he is a shareholder of Ashanti.

Cautionary Statement on Forward-Looking Information

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.