Ashanti Gold Intersects New High-Grade Zone at Gourbassi East, Kossanto East Project, Mali; 47 metres of 3.29 g/t gold (including 12 metres of 8.89 g/t gold), and 41m @ 2.22 g/t gold

Vancouver, British Columbia--(Newsfile Corp. - August 2, 2017) - Ashanti Gold Corp. (TSXV: AGZ) ("Ashanti" or the "Company") is pleased to announce its first assay results from the recently completed 53 Reverse Circulation ("RC") hole, 6073 metre drill program that tested mineralization on the Kossanto East Project (the "Property") in western Mali (see July 10, 2017 press release) (Figure 1).

The targets Gourbassi East and Gourbassi West showed mineralized areas on the Property from historical exploration and thus were the initial focus for Ashanti's first drill campaign. At Gourbassi East, gold mineralization occurs within two adjacent zones with a collective strike length of approximately 900m. The results from the first seven drill holes reported herein, are from the centre of the mineralized zone where it is interpreted to be 50-100m wide (Figures 2 and 3). The extent of mineralization is not known as gold mineralization is open along strike to the northwest and to the southeast as well as down dip, where it has been tested to approximately 125m. Mineralization occurs as veins and stockwork within a zone of silicified and carbonate-altered quartz-eye rhyolite. Altered host rocks are traceable at the surface to the northwest and southeast. Multiple structural controls on mineralization are apparent.

Drilling returned excellent grades and widths, including (see Table 1):

• 41 m @ 2.22 g/t Au including 12 m @ 3.22 g/t Au (GERC102)

• 34 m @ 1.72 g/t Au (GERC104)

• 47 m @ 3.29 g/t Au including 12 m @ 8.89 g/t Au (GERC105)

• 10 m @ 1.82 g/t Au (GERC106)

Dr. Paul Klipfel, Ashanti's COO and Chief Geologist says: "We are extremely pleased with these results. They support our contention that we have identified and are working on an important new gold discovery. "

Table 1: Highlights of Gold Intercepts GERC101 to GERC107

*Intervals are intercept widths in drill hole and not true widths. There is insufficient geologic information to determine true widths at this stage of the project. Drill holes are oriented to provide the best intercept for the interpreted dip direction of mineralization.

Tim McCutcheon, Ashanti's CEO says: "Geologically, we are in the right place, at the intersection of two major gold-bearing shear zones. It appears that others agree, as ground adjacent to the Kossanto East property to the east and west is being explored by major companies, Randgold and Acacia, respectively. We eagerly await the balance of our assay results on this exciting project."

Figure 1: Regional geologic map of the Kedougou-Kenieba Inlier, the most northwesterly exposure of Birimian rocks in the West African craton. The Kossanto East property lies between two regional structures, the Senegal-Mali Shear Zone and the Main Transcurrent Shear Zone both of which feature prominently in localizing mineralization for numerous gold deposits. Structural relationships on the property suggest that structures parallel to these shear zones pass through the property and control mineralization.

To view an enhanced version of Figure 1, please visit:
http://orders.newsfilecorp.com/files/853/28265_a1501621037455_84.jpg

Figure 2: Top map is historic drilling (blue collars) and Ashanti current drilling (red collars). Bottom map is a detailed view of the area showing the location of drill holes reported here.

To view an enhanced version of Figure 2, please visit:
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Figure 3: Section 3850 showing drill holes, trenches, gold intercepts and interpreted mineralized zone.

To view an enhanced version of Figure 3, please visit:
http://orders.newsfilecorp.com/files/853/28265_a1501621038033_16.jpg

The Company advises that drill holes are oriented to intersect stratigraphy at an optimal angle, however true widths cannot be determined as detailed information on the true orientation of stratigraphy at the point of intersection of the drill hole is not available. Quality control is monitored by the insertion of blind certified standard reference material and blanks at a rate of 1/20 samples. Blind duplicate splits are inserted into the sample stream at the rate of 1/50 samples. In addition, the laboratory inserts their own certified standard and blank samples at the rate of 1/20 samples. All samples have been analyzed by SGS Laboratories in Bamako, Mali an internationally known testing company.

About Kossanto East Project

The Kossanto East Project is a 66.41 km² concession in the prolific Kedougou - Kenieba Inlier, the northwestern most exposure of Birimian rocks in West Africa and host to the Loulo and Sadiola group of world class gold deposits (Figure 1). Ashanti is earning a 65% stake in the property from Alecto Minerals PLC. The Property hosts two principle historically drill-tested targets, Gourbassi East and Gourbassi West (Figure 2) and several surface anomalies identified in surface samples and Rotary Airblast (RAB) drill holes. Geochemical anomalies identified by previous explorers and Alecto Minerals PLC led to drill testing and successful intersection of gold mineralization. The results reported here are from Gourbassi East. Further results from Gourbassi East and Gourbassi West are anticipated in the coming weeks.

ABOUT ASHANTI GOLD

Ashanti is a gold-focused, exploration and development company with advanced projects in the northern Ashanti Belt of Ghana and the Kenieba Belt of Mali. The Company targets projects where existing work demonstrates attractive potential for near-term mine development and 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.