Cortez Gold Corp (TSX VENTURE:CUT) ("Cortez" or the "Company") announces that,
further to its news release of August 3, 2011 and as a result of a review by the
British Columbia Securities Commission, the Company is issuing this news release
to further clarify its disclosure and to retract certain historical technical
disclosure regarding the Petlacala Project contained in its amended management
discussion and analysis for the financial year ended February 28, 2011 that was
filed on SEDAR at www.sedar.com on August 2, 2011 (the "Amended 2011 MD&A").


The Amended 2011 MD&A continued disclosure of a 2005 estimate by the Exploration
Department of Servicios Industriales Penoles of a potential that the Company
designated as being a historical estimate (the "Petlacala Historical Estimate
Disclosure"), and which also applied the terms "potential resource" and "ore
resources". The Petlacala Historical Estimate Disclosure does not comply with
the historical estimates disclosure requirements set out in NI 43-101. The
Petlacala Historical Estimate Disclosure contained in the Amended 2011 MD&A and
any subsequent disclosure of the Company should not be relied on. The Company
previously retracted the Petlacala Historical Estimates Disclosure in its August
3, 2011 news release, and the Company is further amending and re-filing the
Amended 2011 MD&A to reflect such retraction. With this retraction of the
Petlacala Historical Estimates Disclosure, the Company confirms that the
technical report on the Petlacala Property dated July 16, 2010 that was filed on
SEDAR at www.sedar.com on July 19, 2010 (the "Petlacala Report") remains a
current technical report under National Instrument 43-101.


At this time the Company does not have data and information about any historical
resource estimates suitable for disclosure under NI 43-101. In the event the
Company receives a material mineral resource estimate on any of its existing
mineral properties, it will promptly disclose the results and file a supporting
technical report if required by NI 43-101.


The Company has determined not to proceed with the Phase II program at this
time. The exploration results from the Phase I drilling program, coupled with
the significant property payments due, do not support proceeding with the
proposed Phase II program. The Company intends to focus on whether an
alternative exploration approach would be more effective, or whether
opportunities for the joint venture or sale of its interest in the Petlacala
property exists before determining whether to proceed with additional work on
this property. In addition, after initial review of the technical information
available on the Real de Guadalupe Property, the Company has determined that it
will not proceed with any exploration on this property at this time. The Company
is currently focusing on opportunities for the joint venture or sale of its
interest in the Real de Guadalupe property. The Company intends to focus its
efforts on the acquisition and development of the Matehuala, Mexico processing
plant announced February 17, 2011. The Company is reviewing other opportunities
for the Petlacala and Real de Guadalupe projects. 


Piotr Lutynski, P. Eng., an independent consultant, is the qualified person (as
defined in NI 43-101) who approved the scientific and technical information
contained in this news release.


ON BEHALF OF THE BOARD of Cortez Gold Corp.

Robert Eadie, President & Chief Executive Officer