News Releases

Columbus Gold Corporation Extends Loan With Columbus Silver

September 22, 2010

Vancouver, British Columbia, Canada. September 22, 2010. Columbus Gold Corporation (CGT: TSX-V) (the “Company”) has extended its loan agreements with Columbus Silver Corporation (“Columbus Silver”). In connection therewith, the Company and its wholly-owned subsidiary Columbus Gold (U.S.) Corporation (“Gold US” and together with the Company, “Columbus Gold”), located at Suite 307-475 Howe Street, Vancouver, British Columbia, V6C 2B3 have renewed convertible loan documents with Columbus Silver and its wholly-owned subsidiary, Columbus Silver (U.S.) Corporation, which loans may be converted into common shares of Columbus Silver at the Company’s election. Under the loan documents, Columbus Gold may convert up to CDN$850,000 (owed directly to the Company by Columbus Silver Corporation) and US$540,465 (owed by Columbus Silver (U.S.) Corporation to Gold US, and thus indirectly to the Company) into common shares of Columbus Silver at a conversion price per such share of CDN$0.10. Prior to the aforementioned transaction, Columbus Gold held 4,620,000 common shares of Columbus Silver, representing 14.2% of Columbus Silver’s issued and outstanding share capital, and also 1,620,000 warrants which, on a fully diluted basis with Columbus Gold’s shares of Columbus Silver, represented approximately 18.2% of Columbus Silver’s issued and outstanding share capital, as well as the prior loan documents which were also convertible. Assuming the full conversion of the extended loan amounts into common shares of Columbus Silver, Columbus Gold has acquired the right to acquire 33% of the common shares of Columbus Silver, and would hold approximately 40% of Columbus Silver’s issued and outstanding share capital upon conversion of the loans, or 42% including the full conversion of the loans as well as Columbus Gold’s outstanding warrants. The aforementioned transactions were conducted privately; both Columbus Gold Corporation and Columbus Silver are listed for trading on the TSX Venture Exchange. Columbus Gold conducted the transactions to facilitate Columbus Silver’s ultimate repayment of the loans and in consideration of the conversion feature; Columbus Gold has no plans to acquire ownership of, or control over, additional securities of Columbus Silver. The foregoing transactions have been completed pursuant to the accredited investor exemption under National Instrument 45-106, based on the net asset position of Columbus Gold.


Robert F. Giustra
President & CEO, Director

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.

For more information contact:

Ray Lagace
Investor Relations
604-638-3474 or

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”), respecting the Company’s investment plans, and the Company’s fully diluted share position in Columbus Silver. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to obtain alternate financing; changes in the market; decisions respecting whether or not to convert the loan documents; non-performance by contractual counterparties; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; the price of Columbus Silver’s trading shares; the ability to locate sufficient financing for ongoing operations; and general market conditions. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.