Ashanti Gold Corp. Arranges Non-Brokered Private Placement and Appointment of CFO

August 17, 2016

VANCOUVER, BC – 8/17/2016 Ashanti Gold Corp. (“AGZ” or the “Company”) - (TSXV: AGZ) is pleased to announce it has arranged a non-brokered private placement of up to 5,000,000 units (the “Units”) at a price of $0.26 per Unit (the “Offering”) for gross proceeds of up to $1,300,000. Each Unit will consist of one common share of the Company (a “Share”) and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to acquire one additional share of the Company for a period of three years from the date of issuance at a price of $0.36 per share. In the event that the Company’s shares trade at a closing price of greater than $0.50 per share for a period of 10 consecutive days at any time after the closing of the Offering, the Company may accelerate the expiry date of the Warrants by providing notice to the shareholders thereof and in such case the Warrants will expire on the 30 th day after the date on which such notice is given by the Company.

Finder's fees may be payable to arm’s length parties that have introduced the Company to certain subscribers participating in the Offering. All securities issued in the Offering are subject to a four-month hold period, during which time the securities may not be traded. Closing of the Offering is subject to the approval of the TSX Venture Exchange.

The net proceeds from the Placement are intended to be used to fund the exploration costs related to the earn-in agreement on the Anumso property, pursuant to the letter of intent with Goldplat PLC announced on July 13, 2016, as well as for general corporate purposes.

This press release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the “1933 Act”) or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Appointment of CFO

The Company is pleased to announce that it has appointed Ann Fehr as CFO. Ms. Fehr is a chartered professional accountant with over 15 years’ experience in senior management and has worked in the mining sector since 2007. The Board would like to thank the outgoing CFO, Ming Jang, for his service to the Company.

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: 604-638-3690


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.

Cautionary Statement on Forward-Looking Information

This news release contains forward looking statements. There are risks associated with forward looking statements, in that actual results may vary from those stated, and the variance may be material. There is no assurance that the private placement announced will be successfully completed on the terms outlined, or at all. The formal agreement with Goldplat plc has not been executed, and there is no assurance that transaction will close as contemplated, or at all.

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