Asante Gold Project Status Update - Grants Incentive Options

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 12, 2017) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Asante Gold Corporation (CSE:ASE)(CSE:ASE.CN)(CNSX:ASE)(OTC:ASGOF)(FRANKFURT:1A9) ("Asante Gold" or the "Company") updates the shareholders with respect to the current status of our various projects and option agreements. Asante Gold also announces the granting of 800,000 incentive share purchase options to consultants and advisors at a price of $0.15 per share for a term of 5 years.

KUBI MINING LEASE ACQUISITION

On August 9, 2016 Asante Gold announced the terms for the acquisition of the Kubi Mining Lease and eight prospecting licenses (please see: http://www.asantegold.com/news/asante-gold-acquires-kubi-mining-leases-and-eight-prospecting-licenses-in-ghana).

A Special Committee of the Board and the dis-interested Shareholders of the Company have approved the acquisition. Final closing of the Kubi Mining Lease acquisition is subject to receipt of the consent of the Minister of Lands and Natural Resources of Ghana, which is currently being sought.

Asante Gold is continuing discussions with the third parties that control the eight prospecting licenses to effect their finalization and transfer to the Company. With the recent change in Government now completed, we expect the process to proceed smoothly.

KUBI GOLD JV - CLOSING DEADLINE NOT MET - ONGOING DISCUSSIONS

On October 17, 2016, the Company announced that it had entered into an agreement with BXC Company Ghana Limited ("BXC") to form the Kubi Gold JV, a 50:50 joint venture to develop the Kubi Mining Lease in Ghana towards production and to purchase a 30% equity interest in Asante Gold.

On March 2, 2017 BXC completed the purchase of $700,000 of a $1.25 million private placement offering by the Company, priced at $0.18 per unit. Each unit consisted of one common share and one-half of a share purchase warrant. Each whole share purchase warrant is exercisable to acquire an additional common share for a two year period at a price of $0.25 per share. BXC currently holds 3,888,889 shares and 1,944,445 warrants in the capital of Asante Gold.

Unfortunately, due to the already extended closing and the uncertainty of knowing when requisite governmental approvals would be obtained, and the ongoing financing needs of the Company, the parties have agreed to allow the agreement to expire. The Company and BXC, however, are continuing to co-operate on the basis that governmental approvals may be obtained in due course and a new joint venture formed. The Company notes that there can be no guarantee offered or implied that closing of a joint venture with BXC will ultimately occur. Asante Gold is currently considering other financing alternatives to bring Kubi to an early production decision.

KEYHOLE OPTION

On September 8, 2016 Asante Gold announced the acquisition of up to 100% interest in the Keyhole Option properties that cover an extensive area of past alluvial gold mining. The Special Committee of the Board has approved the acquisition, and the initial payment of 250,000 shares from treasury. Recent drill testing at Keyhole discovered up to 13.1g/t gold over a 3 metre interval in a shear zone. A further program of trenching and detailed ground geophysics has commenced to extend the discovery and test for additional sub parallel shears. Please see: http://www.asantegold.com/news/asante-acquires-strategically-located-keyhole-gold-project-ghana and http://www.asantegold.com/news/asante-gold-intersects-13-1-gpt-gold-over-3-0m-at-keyhole-option-ghana).

BETENASE OPTION

Asante Gold is continuing discussions with the third party that controls the Betenase Permit to effect its finalization and transfer to the Company. The Option and Sale Agreement, announced on August 10, 2015, allows Asante Gold to acquire up to a 100% interest in the Permit subject to a 1% NSR royalty to third parties. The permit adjoins to the east of the Kubi Mining Lease. A maiden drill program in December 2015 to test a few of the outlined ground geophysical targets gave results to 3.14 g/t gold over 4.0 metres (please see: http://www.asantegold.com/news/asante-options-perseus-mining-s-betanase-concession-kubi-area-ghana & http://www.asantegold.com/news/gold-mineralization-discovered-at-betanase-kubi-obuasi-area-ghana).

SENECA NSR ROYALTY INTEREST

Asante Gold has received notice from NSS Resources Inc. that a significant part of their Seneca property claims, Harrison Lake area, British Columbia have expired. The decreased size of the property may negatively impact the potential future value of the Issuers' 2% NSR which it holds on the remaining Seneca claims.

On behalf of the Board,

Douglas R. MacQuarrie, President and CEO

About Asante Gold Corporation

Asante Gold has the right to buy 100% of the Kubi Mining Lease and is exploring the Keyhole, Fahiakoba and Betenase concessions, all adjoining or along strike of major gold mines near the centre of Ghana's Golden Triangle.

Additional information is available on our web site at: www.asantegold.com

This news release contains statements of forward-looking information (or "FLI") including those in respect of future exploration, joint venture, development, permitting and mining at Kubi and the other properties in which Asante Gold has an interest, financings, requisite shareholder approvals and timing for closing of the options. FLI involves risks and uncertainties which could cause actual results to vary from the FLI. The risk factors that could cause actual results to differ materially include: the risk of failure to obtain sufficient financing; the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineralization; the possibility that future exploration, development or mining results will not be consistent with Asante Gold's expectations; accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production and operations; the availability and costs of suitable toll milling facilities; fluctuating prices of metals and other commodities; currency fluctuations; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; regulatory restrictions, including environmental regulatory restrictions and liability and the lack of any assurance that Asante Gold will receive all of the necessary governmental title and approvals to proceed with the development of its projects. The material factors and assumptions on which the FLI is based include the extensive Kubi drilling database and current mineral resource estimate, the previously successful permitting, mining, trucking and milling operations at Kubi, the local availability of skilled labor, plant and machinery, and the positive results from previous metallurgical tests on the Kubi Main deposit mineralization. Asante Gold undertakes no obligation to update FLI except as required by applicable law. Such information represents management's best judgment based on information currently available. Readers are advised not to place undue reliance on FLI.

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.