Castle Peak Completes Detailed Sampling of Gold Anomalies in Preparation of Drilling

Vancouver, British Columbia--(Newsfile Corp. - August 16, 2016) - Castle Peak Mining Ltd. (TSXV: CAP) ("Castle Peak" or the "Company"), is pleased to announce that the field crew has completed the pre-drilling sampling program at the Akorade Project located in the southern Ashanti Belt, Ghana. A total of 328 auger samples have been submitted to the laboratory for analysis (includes 30 control samples) taken from five prospects. Results will be made available once they have been received, reviewed and compiled with the pre-existing dataset.

A total of 85 samples were collected to further refine the Akoko Trend. The objectives of this sampling were to extend the known anomalous trend and to define a core target area to be considered for drill evaluation. The current anomalous gold zone measures approximately 1,000m in length with two parallel zones with an aggregate width of 150m to 200m. This trend crosses the Enyinase and Great Yorkshire (Simpa) Prospecting Licences and is currently anchored by a near surface mineral resource on an adjacent property. The expression of the mineralized trend is further defined as both a near surface and deep conductor in our airborne VTEM (Versatile Time Domain Electromagnetic) survey. Additional support for the prospective mineralized trend resulted from previously completed 4m auger sampling (200m line spacing, 50m sample spacing) initially defining the co-incident geophysical trend with a +70ppb gold anomaly. There is no guarantee that mineralization on an adjacent property continues onto Castle Peak's land position.

A total of 54 samples were collected at the Dansuom geophysical anomaly (Dansuom North). This sampling was undertaken as a proof of exploration concept in the Dansuom area and to de-risk the exploration drilling target. Previous drilling on the original Dansuom target (now Dansuom Central) intersected sheared granitoid and mafic volcanic units with associated auriferous veining and auriferous pyrite halos to the mineralized veins. This structure gave a specific signature in a gradient induced polarisation (I.P.) survey which has been used to identify additional potential mineralized structures in the area, the largest of which is Dansuom North (600m x 200m).

A total of 61 samples were collected at the POW A1/3 prospect with a cluster of nine samples in the northeast unable to be collected due to swampy terrain. The objectives of this sampling were to better define and refine the 1,000m by 75m anomaly focusing on the core 300m section that previously returned auger soil values ranging from 0.1 gram per tonne ('g/t') to 0.3 g/t gold. This geochemical anomaly occurs coincident with an inferred fault juxtaposing magnetic and non-magnetic volcanic units in close proximity to a small volume intrusive body.

Two earlier stage prospects also received detailed sampling as these are considered to have discovery potential. The Dompem New (DO_New) prospect is an inferred dilational zone adjacent to the structural boundary between Tarkwaian rock units and Birimian rock units. The prospect is defined by abundant quartz boulders over a strike length of 130m and width of 70m within a zone of elevated soil samples; previous limited soil sampling values ranged from 16 parts per billion ('ppb') to 70 ppb gold. The objective of the current sampling, 51 samples collected, is to better understand gold distribution in relation to the veining prior to trenching or drilling. Prospect K4, on the Kedadwen concession, is a cluster of geochemical gold-in-soil anomalies, ranging from +40ppb Au to >300ppb Au, located within an inferred granitoid unit bounded by faults to the north and south. Field evaluation resulted in the location of a sizeable field, 10mx 80m, of up to meter-scale quartz and tourmaline boulders and of a single decimeter scale boulder of grey vein material and silicified host rock with pyrite, arsenian pyrite and chalcopyrite mineralization; a weak arsenic anomaly occurs in the area. The vein boulders exhibit multiple pulses of fluid flow with tourmaline laminations and brecciated tourmaline and quartz re-healed with quartz. The K-4 prospect may be indicative of an area of repeated structural activity and high fluid flow. This area had 32 samples collected with the objective to better understand the gold distribution in relation to the boulder distribution.

Maps, descriptions and additional information about these prospects and our other prospects and anomalies will be made available on our website which is currently being refreshed (www.castlepeakmining.com).

Castle Peak continues to evaluate and prioritize targets immediately adjacent to it's current high grade Apankrah Deposit, a discovery by Castle Peak consisting of an inferred resource of 275,000 tonnes @ 8.6 g/t Au for 76,000 ounces*. Partners are currently being sought in order to expand and advance this deposit.

*Mineral resources are reported with an effective date of June 1, 2013 at a cut-off grade of 2 grams per tonne ('g/t') gold ('Au'). Cut-off grades are based on a price of $1,400 USD/oz Au. All figures are rounded to reflect the relative accuracy of the estimate. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources have been classified according to CIM Standards on Mineral Resources and Reserves. There are no known environmental, political, legal or other risks that could materially affect the potential development of the mineral resource at this time.

Technical Disclosure

Castle Peak's technical disclosure in this news release has been reviewed and approved by Darren Lindsay, P.Geo., Castle Peak's President and CEO, who serves as a Qualified Person under the definition in National Instrument 43-101 ('NI 43-101'). The exploration activities reported in the release were supervised by Henry Sowah, Castle Peak's Exploration Manager. Auger soil sampling reported herein was collected as approximately 2kg samples at roughly 4m depth at sites located using handheld GPS. Soil sampling reported herein was collected as approximately 2kg samples at roughly 1m depth at sites located using handheld GPS. Castle Peak inserted control samples every tenth sample (one of field duplicate or blank standard material). Samples were analyzed for gold by fire assay and ICP analytical methodologies at SGS Laboratories in Tarkwa, Ghana. The Akorade Project represents early stage exploration properties and as such there is no guarantee mineral resources will be discovered or defined; however, the properties do include an inferred mineral resource, the Apankrah Deposit with an effective date of June 1, 2013, as described in the "NI 43-101 Technical Report on The Apankrah Project, Western Region, Ghana" dated June 1, 2013, prepared by Simon Meadows Smith (IOM3) a Qualified Person as defined by NI 43-101. A copy of the report is filed under the Company's profile on SEDAR at www.sedar.com and the Castle Peak website.

About Castle Peak

Castle Peak Mining Ltd. is a Canadian-based junior exploration company focused on advancing greenfields and early stage gold projects. Castle Peak has discovered the high grade Apankrah deposit and believes there is potential for additional discovery of gold resources. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world.

On behalf of the Board of Castle Peak Mining Ltd.:

"Darren Lindsay"
President and Chief Executive Officer

For additional information please visit www.castlepeakmining.com or contact:
Darren Lindsay, President and CEO
Tel: 604 345 1926
Email: darrenl@castlepeakmining.com

FORWARD-LOOKING STATEMENTS

Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding the Offering and the proposed use of proceeds. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Annual MD&A filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither 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 NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

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