Contango ORE Raises US$5.3 Million From Warrant Exercises and Reports AGM Results

Contango ORE, Inc. (OTCBB: CTGO) (“CORE” or the “Company”) announced that certain holders of outstanding warrants issued in 2013 have exercised 587,500 warrants resulting in $5.3 million in cash net to the Company (including $0.8 million exercised by entities controlled by the Company’s President, Brad Juneau). The holders of these warrants were offered a 10% discount to early exercise the warrants for cash to provide the Company with financial flexibility. In addition, in an unrelated transaction, 62,500 warrants were exercised in a cashless exercise at their original $10 exercise price, leaving 580,999 warrants of the Company outstanding.

The drilling conducted by Peak Gold, LLC, a joint venture between the Company and Royal Alaska, LLC (“Royal”), a wholly owned subsidiary of Royal Gold, Inc. managed by Royal (the “Joint Venture”) in the North Peak resource area of the Joint Venture’s gold exploration project in Tetlin, Alaska is wrapping up for the season, with 19 core holes drilled in the 2016 Phase I, 62 holes in Phase II and 37 holes in Phase III. Total meters drilled in 2016 was 20,522.8 (67,335 ft). The North Peak area remains open to expansion on the northwest and southeast portions, as the last holes drilled were still in gold bearing skarn.

The following table shows the most recent significant intercepts drilled on the project for which assay results have not been previously released and there are 9 core holes drilled for which assay results are still pending. Sample intervals are calculated using 0.5 grams per tonne (gpt) lower cut off for gold with no internal waste less than cutoff grade that is greater than 3 meters in thickness. Intercepts shown are drill intercept lengths. True width of mineralization is unknown.

The data below includes 21 new drill holes from TET16274 and TET16301 and their locations are shown on the accompanying base map:

The Company held its annual meeting of stockholders on November 17, 2016 and the following directors were elected:

Additionally, the Company’s Board of Directors re-appointed the following officers of the Company:

The Company also announced that it filed its Form 10-Q for the quarter ended September 30, 2016 with the Securities and Exchange Commission.

The Company reported a net loss of $1.0 million or ($0.24) per basic and diluted share for the three months ended September 30, 2016 compared to a loss of $0.5 million or $(0.12) per basic and diluted share for the same period last year. During the three months ended September 30, 2016, $0.6 million of the net loss was attributed to non-cash expenses compared to $0.2 million for the same period last year.

Brad Juneau, the Company’s President commented, “We are pleased with the large number of warrants recently exercised, which dramatically changed the Company’s cash position, which now exceeds $6 million as of November 17, 2016. We remain encouraged by the Joint Venture’s drilling results and technical expertise provided by Royal Gold. We look forward to releasing a resource estimate of the Joint Venture’s Alaskan gold deposit in the Spring of calendar year 2017.”

ABOUT CORE

CORE is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals through Peak Gold, LLC, its joint venture company with Royal Alaska, LLC. Additional information can be found on our web page at www.contangoore.com.