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TSXSymbol: STGO

TotalBasicSharesO/S(M): 42.9

MATTHEWWOODChairman,PresidentandCEO

BATAATUMUR-OCHIRDirectorandVicePresidentMongolia

ANEELWARAICHDirectorandExecutiveVicePresident

PATRICKMICHAELSDirector

DR.ZAMBABATJARGALDirector

LEWISMARKSDirector

SHELDONVANDERKOOYDirector

CONTACTINFORMATION

THECOMPANY’SHEADOFFICE:

Shangri-Laoffice,Suite1201,Olympicstreet19A,SukhbaatarDistrict1,Ulaanbaatar14241,MongoliaTel:+97677321914

TORONTOOFFICE:

90AdelaideStreet.W,Suite400Toronto,ONM5H3V9,CanadaTel:+16476970577

TRANSFERAGENT:

LoriWinchesterSeniorRelationshipManager,ClientManagement

Phone:+1416607-7898Cell:+1416671-4558Email:lori.winchester@tmx.com

Toronto, ON – Steppe Gold Limited (TSX: STGO) (the “Company” or“Steppe Gold”) is pleased to announce the progress that has beenmadeoverthelastmonthatAltanTsagaanOvoo(“ATO”)GoldProjectinMongolia.

HIGHLIGHTS➢ TheATOdevelopment isprogressingwellwith theprojectCAPEXremaining

underbudget.

➢ The ATO crushing circuit is nearing construction completion and will bemovingintocommissioninginthecomingweeks.

➢ Heapleachpadconstructioniswellunderwaywithsignificantadvancesmadeoverthelastmonth.

➢ Major ADR Plant equipment has been delivered toMongolia with site works andconstructioncommenced.

➢ Bankable feasibility study for a proposed150,000oz goldper annumoperationonfreshrockoresisongoing.

➢ The Stage 3 drilling programon the ATO2 oxide zone has been completedwith atotalof14drillholesfor752.3meters.

➢ InfilldrillinghasnowbeencompletedoverallknownoxidemineralizeddepositsattheATOProject.ThisincludesATO1,ATO2,ATO3andMungu.

➢ SRKhas completeda reporton the structural aspects andadditional targetingofthe ATO Project. This has delivered a number of new targets for immediate andfuture drill testing. The first of these targets will be drill tested in the comingmonth.

➢ TheStage3drillingprogram targetedat theATO4-Mungu trendhas commencedwith8drillholesbeingcompletedfor2,228.0metersofdrilling.AlldrillingrigsarecurrentlyoperatingontheATO4–Mungutrend.

➢ Further visible gold has been seen from drill core on the ATO – Mungu trend.Drillingresultsarepending.

DEVELOPMENTTheCompany ispushinghard foracompletionofsiteconstructionbytheendof2018withfirstgoldinthefirsthalfof2019.Allmaterialsforthecrusherandleachpadhavebeendeliveredtositeandconstructionisnowunderway.

CAPITALIZATION

BOARDOFDIRECTORS

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TheATOcrushingcircuitisnearingconstructioncompletionwithfinalworknowunderway.ThecrusherwillbecommissionedinitiallyonminedATO1oreinthecomingweeks.Thismaterialwillbeusedasoverlinerfortheheapleachpadsandstackingofthepadshouldcommenceoverthenextmonth.

Heapleachpadconstructioniswellunderwaywithsignificantadvancesbeingmadeoverthelastmonth.Cell-1isexpectedtobecompletedwithinthenexttwoweeksandearthworkhasnowcommencedonCell-2.

Miningcampaccommodationandrestaurantisfullyoperationalwith106peopleonsite.Themajorityof theADRplantequipmenthasbeendeliveredtoMongoliaandsiteworkshavecommenced inpreparationforconstructionnextweek.

DRAGlobalhasbeenappointedandhasbeguntomanageandundertakeabankablefeasibilitystudyfortheconstructionanddevelopmentexpansionoftheATOGoldProjectto150,000ozgoldperannumutilizingaCILplant forgoldandsilverproduction.Thestudywillbebasedonexisting fresh rockoresatATO1,ATO2andATO4,inadditiontothepotentialbeingseenattheATO4–Mungutrend.Thisstudyisongoing.Aselectionofphotoshasbeenincludedbelowdemonstratingactivitiesonsite:

Crusher construction

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Crusher construction

Barren & Pregnant Pond excavation

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Barren & Pregnant Pond excavation

Cell 1 Embankment lining

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Cell 1 HDPE lining

Cell 1 HDPE lining

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Cell 1 compaction

Cone Crusher construction

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Greg Wood, VP Operations, Grant Smith, GM Processing and Aruinbat Edenebataar, Senior Mining Engineer on Cell 1

Cell 1 HDPE Lining continuing

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Cell 1 HDPE lining continuing

ADR Plant topsoil removal

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Overview cells 1 and 2

(more overleaf)

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Hopper, bin construction complete

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8 meter stacking ramp for cell 1 under construction

Liner being laid on cell 1

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Liner being laid on cell 1

Cell 1 60% complete

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Cell 2 conditioning underway

Overview Cell 1 and 2

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ATODRILLINGTheCompanyhasnowcompletedatotalof99drillholesfor16,157.5meterssinceacquiringtheprojectinlate2017.Explorationresultshavebeenexcellentandtheydemonstratethehigh-gradepotentialof theATOGoldProject.

TheStage3drillprogramhascommencedwiththreediamondcoredrillingrigsinitiallycompletingtheoxidezone drill out at the ATO2 deposit. A total of 752.3meters in 14 drill holes have been completed by theCompanyatATOwithresultspending.

TheCompanyhasnowmovedallthreedrillingrigsontotheexcitingATO4–Mungutrendandtodateatotalof3,270.3metershavebeencompletedin22drillholes.ThisdrillprogramcontinuestodeliversuccesswithvisiblegoldbeingidentifiedalreadyinATO-348.Thisisincrediblyencouragingsoearlyintheprogramwithallresultspending.

Drill rigs on Mungu Gap

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Visible gold in ATO-348

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Visible gold in ATO-348

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ATO-4 to Mungu Gap long section

The company has also commissioned a structural review report by SRK. This has been completed and hashighlightedanumberofhigh-levelundrilledtargetsclosetoknowndepositswhichhavenotbeendrill tested.Thefirstofthesetargetsisexpectedtobedrilledoverthecomingmonth.

ABOUTSTEPPEGOLD

SteppeGoldisapreciousmetalsexplorationanddevelopmentcompanywithanaggressivegrowthstrategytobuild Steppe Gold into the premier preciousmetals company inMongolia. The Company owns 100% of theadvanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leachdevelopment iscurrentlyunderway.TheCompanyalsoowns80%of theexcitingUudamKhundiiGoldProjectwhereanactiveexplorationprogramisunderwayandmakingnewdiscoveries.MatthewWood,ExecutiveChairmansaid“OverthesummermonthstheCompanyhasexperiencedsomedelaysto itsdevelopmentschedulefromelementsoutsideofthecompany’scontrol.Theseelementsarenowlargelyresolved and the Company is proceeding full speed ahead with the ATO mine development. Steppe GoldcontinuestoreceiveverystrongsupportforthedevelopmentoftheATOGoldProjectfromfederal,stateandlocalstakeholdersinMongoliawiththeATOmineisalreadyaddingsignificantlytothelocalSoumandDornodeconomy.Steppe Gold is based in Mongolia with its head office in Ulaanbaatar. We are almost entirely staffed byMongoliansandarepurelyfocusedondevelopingpreciousmetalsassetsinMongolia.Mongoliaisourhome.Weareextremelyproudoftheeffortsouremployees,contractorsandconsultantsaremakingforshareholdersandstakeholders in their efforts to sustainably develop and expand the gold sector in Mongolia. This is alreadycreating increased employment and business opportunities as Steppe Gold grows into the premier preciousmetalsCompanyinthecountry.Mongoliaisopenforbusiness,prominingdevelopmentandoneofthelastgreatfrontierswheregiantmineraldepositscanbefoundanddeveloped.”