TSX-V: DAU

TSXV: DAU

Market Price: $0.07
| Gold

: XAU/USD

Market Price: $2,638.73

DjimbalaMage geologySurrey, British Columbia, January 20, 2017, DESERT GOLD VENTURES INC. (“Desert Gold” or the “Company”) (TSX.V: DAU/FF:QXR2/OTC:DAUGF) is pleased to announce the successful renewal of the Company’s Djimbala Gold permit in western Mali. The permit is now valid until December 21, 2018

The Djimbala permit is situated in the Yanfolila Gold Belt in an area that hosts regional scale fundamental structures. These structures are essential in the formation of gold deposits in West Africa and make the whole permit highly prospective for the discovery of significant gold resources.

The prospect is located 30km north of the Kordieran Project, 40 km north of Avnel Gold’s Kalana Mine and adjacent to Gold Field’s Komana Project.

The conceptual target on the strategic Djimbala project is orogenic-style gold mineralization, similar to gold mines and other projects in the Yanfolila Gold Belt. A number of prospects surround the permit and the structures hosting the Faliko (Gold Fields), Salona (Gold Fields) and Niechilela (Gold Fields) prospects extend into the Djimbala permit. The project has artisanal gold workings in altered sedimentary host rock and in elluvial deposits. Seven of the artisanal workings occur within the sampled area. The sampling program covers the first of 4 areas prioritized for follow-up exploration. A total of 1,120 surface soil samples were collected in the first phase of sampling on Djimbala. The sample lines are oriented north- south and spaced 200 meters apart. Samples were collected every 50 meters along these lines, and at an average depth of 30 centimeters.

The sampling highlights a strong correlation between anomalous gold values and geological structures identified on aeromagnetic maps. 9 exploration targets were identified on the grid. Please refer to the geochemistry map below. 3 Samples analyzed over 1 gram per tonne of gold with the highest gold value being 22.6 grams per tonne. The table below summarizes the distribution of gold values.

Number of samples Gold Assay Values (ppb)
539 <10
499 10 to 29
19 50 to 99
16 100 to 999
3 1000 to 22 600

-  Total number of samples 1,120

-  The Company plans to do detailed infill soil sampling over the 9 exploration targets.

DjimbalaMap GoldSoil

Sample Protocol

Samples were taken from the B soil horizon, generally 30cm to 50cm below surface. 2kg of unscreened material was gathered in the field, placed in calico bags with unique ticket numbers and shipped to ALS Mali SARL Bamako laboratory for analysis. The samples were assayed by means of fire assay with an atomic absorption finish. As part of the quality assurance and quality control program, a standard, blank and duplicate sample were inserted within every 20 samples submitted to the laboratory. Plots of the assay results from the standard reference material show that the assay data can be accepted.

Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific and technical information contained in this release.

ON BEHALF OF THE BOARD

s/"Jared Scharf"
Jared Scharf, Director
+1 (858) 247-8195

For further information please visit our website www.desertgold.ca or information available on www.SEDAR.com under the company’s profile.

Certain statements contained  in this release  may constitute "forward–looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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 does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.