CVB Compass Gold Corporation

Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Company"), which
is focused on gold exploration on six properties in Mali, Africa's third largest
gold producer issued the following letter: 


Dear fellow Compass shareholders, 

I would like to take this opportunity to firstly start by warmly thanking you
for your continuing support in what is currently a very difficult operating
environment in terms of market sentiment and gold price. Whilst we are unable to
see what is ahead of us in terms of the future of the gold sector as a whole,
Compass remains very positive in its outlook moving forward. 


In the short time since my appointment as CEO, the Company has been very active
on both the corporate and technical fronts and managed to continue to operate on
a very low capital base. Ensuring the Company has sufficient funds to meet its
listing and tenement commitments and keeping our Mali based technical team
together have been, and remains, our highest priority. 


Despite these very difficult conditions we have made significant inroads on a
number of fronts as follows:


Current Status on Merger & Acquisition Process 

As discussed in the Company's announcement of 3rd October 2012 Compass has been
very active in investigating the potential of attaining exposure to the
Australian Stock Exchange (the "ASX") through either i) a Initial Public
Offering on the ASX, ii) a merger with an existing ASX listed entity; or iii) a
transaction which would see the sale of the Compass Gold asset portfolio to an
ASX listed company and a return of capital to Compass shareholders in the form
of the ASX listed entity's shares. 


In a backdrop of continuing negligible market support and no indication of
access to capital from TSXV investors currently, it remains the unanimous view
of the Compass board of directors that exposure to the ASX to provide access to
new capital and a new market which we note has recognised and rewarded recent
Mali gold exploration successes will be beneficial for the Company and its
shareholders. 


I can now report to you that these investigative activities, which have been
ongoing for approximately 6 months, will, in the Company's reasonable
expectation shortly be coming to a conclusion. We have over several weeks had a
number of parties undertaking due diligence on the Company and its assets with a
view to a business combination with Compass. Resulting from that exercise we are
now down to the last groups and a decision will be made shortly which group we
will choose to undertake to announce a proposed transaction with, the details of
which management of the Company reasonably anticipates to be announced shortly
and which will be subject to a number of conditions precedent including but not
limited to shareholder and regulatory approval and financing. The reader should
note that there is no assurance that such a proposed transaction will in fact be
announced or if announced be concluded.


Joint Venture Opportunities 

In addition to investigating the possibility of a transaction to gain exposure
to the ASX, Compass has also been active in seeking, and in some cases accepting
approaches from established mining houses looking at the potential of joint
venturing on one or all of the properties within the Compass exploration project
portfolio. Initial feedback from due diligence undertaken by one of these
groups, following a Bamako office and site visit from senior technical members
of that group was very positive. Whilst it needs to made clear that there is no
guarantee that a commercial joint venture agreement will eventuate from the
activities of these groups, we do however, anticipate further discussion around
commercial terms with that particular group regarding the possibility of a joint
venture on one or more of the projects over the next 4 to 6 weeks. 


Compass has viewed it as critical that during and after any potential M&A
activities involving the Compass assets that the resultant structure relating to
a transaction, what ever form it is in, allows, without hindrance, the
opportunity for a larger established mining entity with funding on hand, to
propose and if attractive, undertake a joint venture on any of the Compass
exploration permits. We view interest in joint venturing with the Company on its
permits very favourably, particularly in these difficult market conditions where
raising equity capital results in significant dilution to existing shareholders.


Technical Progress - Target Generation A Priority 

Despite a very low capital base to work from, we have managed to retain the
professional services of the Mali based technical team, which we regard very
highly. During the last 6 months the team has been very active in a number of
areas on all of the Company's gold exploration permits. Whilst technical work
has had to be restricted to low capital-intensive activities (effectively
non-drilling activities), office based data processing and interpretation
activities in addition to low cost fieldwork including mapping and sampling has
resulted in some significant advances in knowledge on all of the Company's
permits. 


The group has now had the opportunity to re-interpret all of the current
aeromagnetic and geochemical data gathered over the past 4 years in addition to
combining this with historical data over all of the Compass properties. With
this newly re-interpreted information the team has narrowed down areas of prime
interest and within those areas generated and refined specific targets ready for
drill testing when capital becomes available. 


Of primary importance has been the prioritisation and ranking of these drill
targets which, tying into my site visit to Mali in February 2013 will allow us
the opportunity to be able to deploy capital when available, very efficiently
and effectively to drill test these now refined targets. 


In closing I again on behalf of myself and the board & management of Compass
Gold thank you for your continuing support for the Company and I look forward to
be able to present to you further details of a proposed transaction in the very
near term. 


Ian Spence, President & CEO

About Compass Gold 

Compass Gold Corporation, a Tier 2 mining issuer listed on the TSX Venture
Exchange, is focused on gold exploration in Mali, Africa's third largest
producer of gold. Compass, through its wholly owned subsidiary, Africa Mining
SARL, owns a 100% interest in six gold exploration permits (Yanfolila, Dandoko,
Moussala, Kolondieba, Solabougouda and Sirakourou), covering an aggregate of
1,138 sq kms in key gold-producing regions in southwest Mali, West Africa.
Further information is available at www.compassgoldcorp.com.


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. 


Forward-Looking Information 

This news release may include "forward-looking statements" including forecasts,
estimates, expectations, and objectives for future operations including but not
limited to its ability to conclude a business combination with a third party,
sale of assets, return of capital or initial public offering and a secondary
listing on the ASX as a result of aforementioned and its ability to fund the
exploration of its assets through the raising of equity or debt capital or
through funding by a joint venture partner that are subject to a number of
assumptions, risks, and uncertainties, many of which are beyond the control of
Compass Gold Corporation including but not limited to capital markets and
commodities risks and continued exploration success on its exploration permits.
There can be and are no actual or implied guarantees that any of the above
activities will be completed or completed on terms acceptable to the Company and
its shareholders or approved by any regulatory authority having jurisdiction.
Such forward-looking information represents management's best judgment based on
information currently available. No forward-looking statement can be guaranteed
and actual future results may vary materially. Risks and uncertainties about
Compass Gold's business are more fully discussed in the company's disclosure
materials, including its MD&A, filed with the securities regulatory authorities
in Canada and available at www.sedar.com and readers are urged to read these
materials. Compass Gold does not assume the obligation to update any
forward-looking statement, except as required by applicable law.


COMPASS GOLD CORPORATION

Ian Spence, President & CEO 

FOR FURTHER INFORMATION PLEASE CONTACT: 
Compass Gold Corporation
James Henderson
Chairman
+61 2 88 233 100
info@compassgoldcorp.com


Compass Gold Corporation
Ian Spence
President & CEO
+61 2 88 233 100
info@compassgoldcorp.com
www.compassgoldcorp.com

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