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Corvus Gold JV Partner Completes 2012 Exploration Drilling Program, Awaits Gold Production Numbers, Terra Project, Alaska

Vancouver, B.C……..Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) announces that the Company’s joint venture partner and operator WestMountain Index Adviser, Inc. (“WestMountain”) has received final results (Table 1) from its four hole, 2012 resource expansion drill program at the Terra Project, Alaska. The high grade “Ben Vein” zone was again intercepted on a 100 metre step-out drill hole to the south of prior drilling, thereby extending the known system to 1,500 metres. Additionally, a hole in the “Fish Vein” zone, 2 kilometres to the north of the Ben Vein, representing a step out of 100 metres to the north of previous high-grade drill intersections, indicates the presence of gold in a previously untested mineralized structure.

Table 1: Terra Project Summer 2012 Drill Results*
(Intervals calculated using a 1 g/t gold cutoff grade and maximum of 0.5 m of internal waste)


Drill Hole
From (metres)
To (metres)
Interval (metres)
Gold
(g/t)
Silver (g/t)
Vein Zone
WGC-12-36
85.20
85.50
0.30
33.00
18.30
Ben Zone
 
122.38
123.00
0.62
21.55
10.72
 
129.54
130.35
0.81
84.24
28.35
 
181.00
181.50
0.50
5.72
1.40
 
192.53
193.00
0.47
11.10
2.20
 
406.5
407.50
1.00
19.38
10.65
WGC-12-37
147.75
148.15
0.40
27.00
17.90
 
174.1
175.40
1.30
10.48
28.08
WGC-12-38
55.50
56.50
1.00
3.10
1.40
 
70.70
71.00
0.30
4.26
3.20
 
272.00
273.00
1.00
5.58
5.00
 
288.00
288.50
0.50
8.49
1.20
WGC-12-39
64.50
66.00
1.50
2.23
1.97
Fish Zone

* Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

As part of the summer exploration and development program funded by Westmountain, an on-site bulk sample gold mill commenced initial operation. Final production numbers are anticipated later next month. Under the Company’s existing joint venture agreement, WestMountain will fund all operations at the project while Corvus’s subsidiary, Raven Gold Inc. (“Raven Gold”) receives 49% of the gold production at no cost until WestMountain completes the required work commitments to earn its initial 51% interest, as well as payments on its precious metals net smelter return royalty. The 2012 exploration and development program should significantly advance the Terra Project, where there is currently an inferred resource of 428,000 tonnes at a grade of 12.2 g/t gold (168,000 contained gold ounces) and 23.1 g/t silver (318,000 contained silver ounces), at a cutoff grade of 5.0 g/t gold, on the Ben Vein. WestMountain has indicated their intention to prepare an updated resource estimate by year end.

Jeff Pontius, Corvus CEO, stated: “The initiation of gold production from the Terra Project is a very exciting event and continues Corvus’s strategy of monetizing non-core projects to support the development of our 100% wholly owned North Bullfrog Project in Nevada. Continued exploration success at Terra by our partner will add value to our shareholders as it represents significant downstream cash flow growth potential.”

About the Terra Project

Terra Gold Corporation (“Terra Alaska”), a subsidiary of WestMountain, is Raven Gold’s joint venture partner on the Terra project. Terra Alaska has the right to earn a 51% interest in the Terra Gold Project from Raven Gold by spending a total of USD 6.0M. Terra Alaska can further increase its ownership to 80% with an additional USD 3.05M investment bringing to a total of USD 9.05M capital investment over a four-year period until the end of 2013 with their 2012 work commitment being approximately USD 1M. Raven Gold is entitled to an NSR of between 0.5% and 5% on all precious metal production and a 1% NSR royalty on all base metal production.

The Terra Gold Project is a high-grade gold vein system. The project’s primary focus is the Ben Vein, where 28 drill holes completed to date have returned 111 vein intersections of over 3 g/t gold. Initial metallurgical work has indicated a high recovery rate via gravity circuit, illustrating potential for near-term production. Given the high-grade nature of the gold veins, coupled with the favourable mining configuration and gravity recovery characteristics, the deposit may be amenable to near-term gold production. Further information on the Terra Project can be found at:

http://www.corvusgold.com/projects/alaska/terra/.

Qualified Person and Quality Control/Quality Assurance

WestMountain has advised the Company that all exploration work on the Terra property has been carried out under their direct control and supervision. All sample shipments are sent to ALS Chemex in Anchorage, Alaska, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assay. ALS Chemex’s quality system complies with requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. WestMountain has its own quality assurance/quality control programs in place. WestMountain has advised that the technical information provided by WestMountain and contained in this news release was reviewed by Greg Schifrin, CEO, a Qualified Person as defined in NI 43-101.

All of the foregoing information has been provided by WestMountain, the parent company of the operator, Terra Gold. Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has reviewed, but not independently verified, the WestMountain information that forms the basis for this news release and has approved the disclosure herein. Mr. Pontius is not independent of the Company, as he is the CEO and holds common shares and incentive stock options in Corvus.

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