Compass Gold to Undertake Shares for Debt Settlement

VANCOUVER, BRITISH COLUMBIA, Oct 29 (MARKET WIRE) --
Compass Gold Corporation (the "Company") (NEX Board: CVB.H) announces
that, subject to the acceptance for filing by the TSX Venture Exchange,
the Company has agreed to issue a total of 3,840,555 units at the price
of $0.09 per unit in satisfaction of debts owing to various third party
creditors in the aggregate amount of C$345,650. Each unit will consist of
one common share in the capital of the Company and one common share
purchase warrant. Each warrant will entitle the holder thereof to
purchase one additional common share in the capital of the Company at
price of C$0.12 per common share for a period of two years from the date
of issue of the units. None of the units will be issued to insiders of
the Company or their associates. The Company expects that the proposed
debt settlement will enable the Company to continue to fund its on going
general and administrative expenses without the need for additional
financing.

On completion of the proposed debt settlement, it is expected that one of
the lenders, Transocean Finance Pty Ltd. ("Transocean"), will
beneficially own or control a total of 1,670,555 common shares of the
Company and 1,555,555 share purchase warrants, representing approximately
14.3% of the Company's then issued and outstanding shares on a
non-diluted basis or 27.7% of the Company's issued shares calculated on a
partially diluted basis assuming the exercise of Transocean's warrants.

In addition, on completion of the proposed debt settlement, it is
expected that one of the lenders, Tisia Nominees Pty Ltd. ("Tisia"), will
beneficially own or control a total of 1,396,111 common shares of the
Company and 1,396,111 share purchase warrants, representing approximately
12.0% of the Company's issued and outstanding shares on a non-diluted
basis or 24.0% of the Company's issued shares calculated on a partially
diluted basis assuming the exercise of Tisia's warrants.

ON BEHALF OF THE BOARD OF DIRECTORS COMPASS GOLD CORPORATION

Marshall Auerback, President and CEO

This press release includes "forward-looking statements" including
forecasts, estimates, expectations and objectives for future operations
that are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of Compass Gold Corporation.
Statements regarding future fund raising and capital expenditures are
subject to all of the risks and uncertainties normally incident with the
raising of capital including, but are not limited to, financing risks,
inflation and costs of goods and services. Investors are cautioned that
any such statements are not guarantees of future performance and that
actual results or developments may differ materially from those projected
in the forward-looking statements. Such forward-looking information
represents management's best judgment based on information currently
available. No forward-looking statement can be guaranteed and actual
future results may vary materially. Compass Gold Corporation does not
assume the obligation to update any forward-looking statement, except as
required by applicable law.

Neither the TSX Venture Exchange nor
its regulation services provider accepts responsibility for the adequacy
or accuracy of this release.

Contacts:
Compass Gold Corporation
Darren Devine
604-638-8067

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