Bandera Gold Signs Option Agreement with Tiberius Gold Corp. and Advances its Project Diversification Strategy

Edmonton, AB, April 24, 2013-Bandera Gold Ltd ("Bandera") (TSXV:BGL.V - News) is pleased to announce that it has signed an Option Agreement (the "Agreement") with Tiberius Gold Corp. ("Tiberius") to earn up to a 100% interest in certain mining properties owned by Tiberius (the "Properties").

The Properties are comprised of 8 claims (Lynx 28, Lynx 29, CUD 1, CUD 2, Taylor 1 Fr., Lynx 28, Lynx 29 and Christine), totaling 619 hectares, located in the SE section of the province of Manitoba within a region known as the Bissett Gold Camp area. All of these claims are positioned within a "belt" roughly 3 kilometres south of the San Gold mine operations located next to the town.

Access to the Properties is garnered by taking the Quesnel Lake Road (Caribou Lake Road) south from the Highway 304 connector between Manigotagan and Bissett. All road systems are maintained and remain open 12 months of the year. The travel time from Winnipeg to the Properties is well within 3.5 hours.

The entire region is steeped in mining history with a host of old shafts, trench works and adits dotting the landscape. The exploration work began in the area in the early 1900's with the Eva shaft (just north of the Lynx claims) being dug to a depth of 80 feet in approximately 1918. A significant amount of primary exploration work was completed during this time period with the result being that a series of surface veins were located.

This preliminary 1918 work in the area was poorly recorded and most of the data was lost in time. Subsequent explorers have provided information ranging from cryptic notations to diamond drilling on the veins in the area.

Under the terms of the Agreement, Bandera will issue 2,000,000 common shares and 1,000,000 warrants to Tiberius to earn a 20% interest in the Property. Each warrant entitles Tiberius to purchase an additional common share at an exercise price of $0.22 per share for a period of 24 months.

The warrants will include a provision that in the event that the common shares of Bandera trade at or above $0.15 per share for 15 consecutive trading days, Bandera may, upon notice to the holders of the warrants, shorten the exercise period to 30 days after which the warrants will lapse.

Bandera can earn an additional 20% interest in the Property each year over the next 4 years (or accelerated at Bandera' s option) by incurring exploration expenditures of not less than $250,000/year on the Property, and issuing an additional 2,000,000 common shares/year and 1,000,000 warrants/year to Tiberius, for each 20% interest. If Bandera exercises each of the options over the next 4 years it will own 100% interest in the Properties.

Stephen Roehrig, President and CEO of Bandera Gold comments: "Bandera believes the Tiberius Properties have the potential to provide our shareholders with a home-court advantage through the acquisition of a project that is located in close proximity to an established producing mine. We are pleased to complete this Agreement and begin advancing our project diversification strategy."

The Option Agreement is subject to approval of the TSX Venture Exchange and the shareholders of Tiberius.

On Behalf of the Board

Stephen Roehrig

President and CEO

For further information please contact:

Stephen Roehrig, President and CEO (780) 465-4129

Web: www.banderagold.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Information provided herein contains forward--looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward--looking statements. The outcome of any regulatory or legal proceedings, including any criminal or civil matters, is uncertain, and Bandera makes no assurances in that regard.