Ely Gold Announces Sale of Isabella Property to Gold Resource Corporation

VANCOUVER, Jan. 9, 2017

VANCOUVER, Jan. 9, 2017 /PRNewswire/ - Ely Gold & Minerals Inc. ("Ely Gold" or the "Company") (TSX-V: ELY, OTC: ELYGF) is pleased to announce its wholly-owned subsidiary, Nevada Select Royalty, Inc. ("Nevada Select") has executed a purchase agreement (the "Agreement") for the sale of its 100% owned Isabella property located in Mineral County, Nevada to Walker Lane Minerals Corporation, a wholly owned subsidiary of Gold Resource Corporation (NYSE MKT: GORO) (collectively "Gold Resource") for US$460,000. Nevada Select will retain a net smelter royalty ("NSR") of 2.5% on the property. The claims, which were acquired by Nevada Select through staking in September 2016, will consolidate and eliminate many mine claim gaps along Gold Resource's Isabella Pearl mineralized trend. Closing of the Agreement (the "Closing") has received Securities Exchange Commission approval and is expected early this week.

Terms of the Agreement include:

• a total sale price of US$460,000 to be paid, at Closing, as follows:
  -  US$100,000 cash;
  -  US$60,000 cash as a one-time advance royalty payment;
  -  US$300,000 in Gold Resource restricted common stock, which equated to 59,642 shares issued at the closing price on January 6, 2017 of $5.03 per share;
• Nevada Select will retain a 2.5% NSR on 153 unpatented mining claims;
• Gold Resource will receive Isabella property deeds at Closing, and will own 100% of all 153 claims.

Terms of the NSR retained by Nevada Select include:

• a 2.5% NSR on 153 unpatented claims;
• Gold Resource has the option to buy-down 0.5% of the NSR for US$500,000;
• The NSR will include a 2-mile area of interest ("AOI") on claims not already held by Gold Resource in their Isabella Pearl property package;
• The AOI royalty will be 2% and Gold Resource can buy-down 1% for US$1,000,000.

The Isabella property covers an area of approximately 2700 acres consisting of 153 unpatented mining claims in central Nevada's Walker Lane Mineral Belt. The claims are all contiguous to Gold Resource's 341 Isabella Pearl claims which they acquired in August of 2016 from an unrelated party. Gold Resource has retained several engineering firms out of Reno Nevada for additional engineering work, and is finalizing the Company's in-house mine scheduling/capital expenditure requirement estimates for the project and the resubmittal of the Environmental Assessment (EA) to the BLM for a mining operations permit at Isabella Pearl.

Trey Wasser, President and CEO of Ely Gold stated, "We are extremely pleased to complete our second transaction with Gold Resource and we hope to continue this partnership as they expand their Nevada operations. The Isabella claims were staked in September 2016 by Nevada Select. This transaction allows Gold Resource to consolidate properties along a very exciting mineralized trend in Nevada. The Isabella property adds an extremely valuable asset to our royalty portfolio"

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