Ashanti Gold Signs Formal Option Agreement for Kossanto East

November 28, 2016

VANCOUVER, BC – 11/28/2016 Ashanti Gold Corp. (“Ashanti” or the “Company”) - (TSXV: AGZ) is pleased to announce it has signed a formal option agreement with Alecto Minerals PLC (“Alecto”), an AIM-listed public company, to earn an interest in the Kossanto East Gold Project (the “Project”) in western Mali, following upon a Letter of Intent announced on August 22, 2016 (http://www.ashantigoldcorp.com/news/2016/ashanti-gold-announces-mali-gold-project-earn-in-agreement). 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 following the date of TSXV approval (the “Option Period”). Ashanti has the right to extend the Option Period to complete PFS by an additional 12 months for a cash payment of US$280,000 (payable in 6 month tranches of US$140,000 each). Additionally, Ashanti may elect to pay in cash US$4.0M to Alecto within 90 days following the end of the Option Period in lieu of producing a PFS. Ashanti will be the operator of the exploration and development programs during the Option Period.

Upon completion of its earn in rights, Ashanti and Alecto will form a joint venture whereby each party will contribute proportionally to the Project’s continuing exploration and development with standard dilution clauses regarding Project funding. If either party’s interest is reduced to 10% or less (not including the Mali State interest), that interest will be converted into a 1.5% net smelter return royalty (the “NSR”) which the other party will have the right for one year to purchase by paying US$100,000 for each 0.1% of the NSR.

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.The Property hosts two principle drill-tested targets, Gourbassi East (“GE”) and Gourbassi West (“GW”) and several surface anomalies.Geochemical anomalies identified by previous explorers and Alecto led to drill testing, successful intersection of gold mineralization.Both areas remain open along strike and down dip and include impressive drill intercepts.One of the other target areas (Berola) has been tested with shallow Rotary Airblast Drilling (RAB) and returned positive, first-pass intercepts.

Gourbassi East is a NNW striking mineralised zone with significant gold grades (multi-meter intercepts at greater than 2 g/t) located within a body of felsic volcanics. The Gourbassi West prospect lies approximately 3.7 km WNW of Gourbassi East.Similar gold intercepts are associated with silicified sandstones and NNW striking zone of mineralization.

The Kossanto East Project is located within the highly gold-endowed West Mali Gold Belt which extends approximately 180 km in a north-south direction along the Mali-Senegal border.The Project lies near the intersection of the Senegal-Mali Shear Zone and the Main Transcurrent Shear Zone, two major structures within this district associated with numerous world class orogenic gold deposits.Over the last 20 years approximately 40M oz of gold have been discovered in proximity to these structures resulting in construction of at least 8 new mines, including the world class Loulo group of deposits, Sadiola, Yatela, Gounkoto, Segala, Tabakoto, and Sabodala.

Ashanti plans to commence field work before the end of the year.This work is aimed at advancing mapping of the GW and GE targets, key rock types, and structure which localizes mineralization.This work will help the Company plan the next phase of drilling that is anticipated to commence late in Q1 2017.

Paul Klipfel, Ashanti’s COO and Chief Geologist, said "We are very excited about this opportunity as we see extensive carbonate alteration, silicification, and multi-stage veining in felsic volcanic rocks.These are attractive features in any greenstone setting, but here they are very significant for their similarity to known mineralization at other deposits in this belt."

ABOUT ASHANTI GOLD

Ashanti is a gold-focused, exploration and development company with projects in the northern Ashanti Belt of Ghana and the Kinieba Belt of Mali.The Company targets 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: 604-638-3690

Qualified Person

The information presented in this Press Release has been reviewed by Dr. Paul Klipfel CPG of Mineral Resource Services Inc. and Qualified Person as defined by Canadian NI 43-101.Dr. Klipfel is not an Independent Person, as he is a shareholder of Ashanti.The data presented has been generated by historic explorers and is stated by them to be compliant with JORC rules of disclosure, however the Company has not independently verified such data, and readers are cautioned not to place undue reliance thereon.

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 news release includes "forward-looking statements", including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company and are considered “forward-looking information for the purposes of Canadian Securities laws.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. There is no assurance the Company will be successful in negotiating a final agreement with Alecto, that the Company will be successful in raising the funds necessary to earn any interest in the Project, that the Company will be successful in maintaining tenure to the Project due to political or legal changes that are at the discretion of the Malian government, that historic drill results will be verified by the Company, or that any economic resource will be located within the Project.

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