Steppe Gold Development Update

Toronto, ON – Steppe Gold Limited (TSX: STGO, 2J9:FF) (the “Company” or “Steppe Gold”) is pleased to announce the progress that has been made over the last month at Altan Tsagaan Ovoo (“ATO”) Gold Project in Mongolia.

HIGHLIGHTS

-     The ATO Development is continuing to progress well with project CAPEX remaining under budget.

-     The ATO crushing circuit is now fully operational with first ore being crushed to specification.

-     Approximately 30,000t of ore has now been mined from the ATO1 Deposit and stacked on the ROM pad for crushing.

-     Cell 1 of the heap leach pad has been completed and stacking of crushed ore onto Cell 1 will commence in the coming days.

-     ADR Plant construction is well underway with concrete foundations currently being poured. The prefabricated ADR plant is in storage awaiting delivery to site for installation.

DEVELOPMENT UPDATE - ATO

The Company continues to push hard to complete the bulk of site construction by the end of 2018 with first gold production in the first half of 2019.

The ATO crushing circuit has now been successfully commissioned and is composed of a jaw crusher followed by two cone crushers producing a 25mm crushed product. The crushing circuit can produce up to 300tph, which is well over the required capacity.

Approximately 30,000t of ore has been mined from the ATO1 Deposit and stockpiled on the ROM pad for crushing. This material will be stacked on Cell 1 of the heap leach operation, which has now been completed and is ready for ore. Stacking of Cell 1 will commence in the coming days.

The ADR plant concrete foundations are now being poured and ADR construction will continue through December. The prefabricated ADR plant is in storage awaiting delivery to site for installation upon completion of siteworks and building.

The Company currently has 140 operational and construction personnel on site.

A selection of photos has been included below demonstrating activities on site:

Jaw Crusher

Crusher & Conveyor

Crusher Site

Stacking Ramp

Crusher Site

Cell 1 Complete

Open cut operating on the ATO1 Deposit

Open cut mining at ATO1 Deposit. Foreground is ATO4-Mungu Deposits, background on the right is the ATO2 Deposit.

ABOUT STEPPE GOLD

Steppe Gold is a precious metals exploration and development company with an aggressive growth strategy to build Steppe Gold into the premier precious metals company in Mongolia. The Company owns 100% of the advanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leach development is currently underway. The Company also owns 80% of the exciting Uudam Khundii Gold Project where an active exploration program is underway and making new discoveries.

Steppe Gold is based in Mongolia with its head office in Ulaanbaatar. We are almost entirely staffed by Mongolians and are purely focused on developing precious metals assets in Mongolia. Mongolia is our home. We are extremely proud of the efforts our employees, contractors and consultants are making for shareholders and stakeholders in their efforts to sustainably develop and expand the gold sector in Mongolia. This is already creating increased employment and business opportunities as Steppe Gold grows into the premier precious metals Company in the country. Mongolia is open for business, pro mining development and one of the last great frontiers where giant mineral deposits can be found and developed.

CONTACT INFORMATION

THE COMPANY’S HEAD OFFICE:

Shangri-La office, Suite 1201, Olympic street 19A, Sukhbaatar District 1,

Ulaanbaatar 14241, Mongolia

Tel: +976 7732 1914

TORONTO OFFICE:

90 Adelaide Street. W, Suite 400 Toronto, ON M5H 3V9,

Canada

Tel: +1 647 697 0577

TRANSFER AGENT:

Lori Winchester

Senior Relationship Manager, Client Management

Phone: +1 416 607-7898

Cell: +1 416 671-4558

Email: lori.winchester@tmx.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info@resource-capital.ch

www.resource-capital.ch