28 diamond core holes (5347 meters) were drilled on the Magambazi East and related targets (Fig. 1). 20 of these holes (4228 m or 79.1% of the total 5347 meters of drilling) were drilled on the main geophysical and geochemical anomaly considered to be an extension of the main Magambazi Hill mineralization zone. A single hole (MZD 28; 159 m or 3.0%) was drilled on a potential mineralization zone north of the main Magambazi mineralization trend and one hole (MZD 25; 201 m or 3.8%) was drilled on a potential mineralization zone south of the main mineralization zone (Figs. 1 and 2). Both these zones were delineated by ground geophysics and soil geochemistry producing well defined drill targets (Fig.2). Six holes (MZD 05, MZD 12, MZD 13, MZD 15, MZD 26 and MZD 27 totalling 445 m or 14.2%) were drilled on targets potentially related to the Magambazi Hill mineralization zones by faulting and / or folding (Fig. 2).

The Magambazi East Main Zone.
As previously reported elevated gold values were intersected in 8 out of the 10 holes reported on the main zone (MZD 01, MZD 02, MZD 03, MZD 04, MZD 06, MZD 07, MZD 09 and MZD 10) with values in MZD 01 of 4.2 g/t over 5 meters, MZD 04 with 10.8 g/t over 1 meter, MZD 06 with 2.62 g/t over 1 meter and MZD 10 with 1.60 g/t over 1 meter representing the best intersections. The highest sample value encountered was 24.7 g/t over 0.5 meters in MZD 01.

Of the additional 10 holes drilled on the main zone, one was abandoned (MZD 19) due to bad drilling conditions. Six of the remaining nine holes intersected gold values of 0.46 g/t or higher over intervals of more than one metre (Table 1) with the highest value 1.24g/t over 1m.

Based on the above results the Magambazi East mineralization zone define a NW-SE trend over approximately 500m. Mineralization along this zone is structurally controlled with an erratic spacing of mineralized shoots interpreted to be plunging at a steep angle in a NW direction along the flanks of a NW plunging synclinal structure.

A single hole (MZD 28) was drilled on a NW-SE trending geophysical and geochemical target with a potential strike distance of 330 m (Fig. 1 and Table 1) on the northern slopes of Magambazi hill. Three discrete Au enriched zones were intersected with values of 3.75g/t, 1.57 g/t and 1.56 g/t all over 1m intervals.

Hole MZD 25 was drilled to evaluate an E-W trending geophysical and geochemical anomaly to the south of Magambazi Hil (Fig. 1). Four distinct gold mineralized zones were intersected with best values of 0.5g/t over 4 m (including 1.31 g/t over 1 m) and 0.68 g/t over 2 m (Table 1). Based on the geophysical evidence and the drill results this zone has a strike distance of approximately 450 m in an E-W direction.

14% of the total meters drilled was dedicated to investigate targets potentially related to the Magambazi East mineralization but separated by faulting, thrusting and/or folding. A simplified interpretation of the geology is presented in Fig. 2. Although potential gold bearing garnet amphibolite were intersected in these holes as well as zones with significant amounts of sulphide and trace amounts of gold, none of these targets produced gold values above 0.2g/t.

The drilling program on the Magambazi East targets achieved the following:

Evaluation of the economic potential of the three mineralization zones will only be possible with closely spaced directional drilling to follow out the mineralization. Handeni Gold will continue its evaluation of the Magambazi East project based on a detailed interpretation of the available drill core and an intensive program of close spaced ground geophysics. The project will finally be ranked against 15 other already identified targets (the decision to continue drilling on its Kwandege project has already been taken) before a decision on a possible continuation of the drilling program on Magambazi East will be taken.

Intercepts are reported as drilling widths due to extreme folding of layers. More drilling will be needed to confirm true widths. For the holes reported for this phase of the assay program sampling was conducted along 1 meter continuous intervals of the core.

Splitting of samples (core saw) is conducted on site for each project and all samples submitted with QA and QC checks (approximately in the following variable sequence): Standard, 9 Samples, Blank, 1 Sample, Duplicate, 7 Samples, Standard. External laboratory checks are also conducted. Half core samples are retained on site. Samples were assayed at the SGS Laboratory in Mwanza, Tanzania by 50g gold fire assay. Samples are also submitted to ALS Chemex, Mwanza from where a < 75µm split of the pulverized material is sent to ALS Chemex in Johannesburg for analyses by fire assay and ICP-AES.

The drilling, sampling and quality assurance/quality control programs were overseen by a team consisting of Reyno Scheepers Pr. Sci. Nat., Ph.D. (CEO and a Qualified Person as designated by NI43-101), Bernard McDonald M.Sc. (Expl. Geol., VP Exploration) and George Rwekiti (M.Sc., Exploration Manager). SRK Consulting is externally monitoring the program.

This news release has been reviewed by Reyno Scheepers Pr. Sci. Nat., Ph.D. (CEO and a Qualified Person as designated by NI43-101).

For further information please contact:

Handeni Gold Inc.

Mr. Bob Dynes (Investor relations manager):

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

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