Contact Gold Corp. (TSX-V: C) (OTCQB: CGOLF) is pleased to announce that it has closed the first tranche of the previously announced non-brokered private placement, resulting in the issuance of 57,600,000 units of the Company at a price of $0.05 per Unit for gross proceeds of $2,880,000. All $ amounts herein are expressed in Canadian dollars.

The net proceeds of the Offering are expected to be used to undertake further drilling at Contact Gold’s Green Springs gold project & continued exploration at the Pony Creek gold project, each located in Nevada, and for general working capital purposes.

The Company expects the second tranche to close on or about November 29, 2021.

Each Unit consisted of one common share in the capital of the Company and one half of one Common Share purchase warrant, with each Warrant entitling the holder to purchase an additional Common Share at a price of $0.075 per share for a period of 24 months from the closing date. In the event that at any time between four months and one day following the closing date and the Expiry Date, the Common Shares trade on the TSX Venture Exchange at a closing price which is equal to or greater than $0.15 for a period of ten consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date such notice is provided.

The Offering included subscriptions by several insiders of the Company, including certain officers and directors, for an aggregate of 12,770,420 Units.

Participation in the Offering by the officers and directors was considered a “Related Party Transaction” under Policy 5.9 of the TSXV, which adopts Multilateral Instrument 61-101  as a policy of the TSXV. In completing such transactions, Contact Gold relied on the applicable exemptions from the valuation requirement and minority security holder approval requirements available under Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that the participation in the private placement by insiders did not exceed 25% of the Company’s market capitalization. A material change report will be filed in connection with the participation of Insiders in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.

Finder fees paid in cash in connection with the closing of this first tranche of the Offering totaled $51,088.74. No finders fees are expected to be payable relating to the second tranche.

The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period in Canada. The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws. Offers and sales in the United States will be limited to institutional accredited investors. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

The closing of the Offering remains subject to the final approval of the TSXV.

About Contact Gold Corp.

Contact Gold is an exploration company focused on making district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin and Cortez gold trends which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 140 km² of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.