KEY HIGHLIGHTS:

• Drilling at the Montclerg Gold Project continues to return high-grade and bulk tonnage intercepts demonstrating continuity within an expanding gold system.
• Hole MTC-23-054 returned multiple gold zones with a highlight of:
  • 9.97 grams of gold per tonne over 8.1 metres in the Upper Footwall zone, yielding one of the best gram-metre intervals drilled to-date at Montclerg within 60 m from surface.
• MTC-23-046 intercepted multiple zones 1 km east of the MC Central zone with a highlight of 1.93 g/t Au over 10.6 m including 4.94 g/t Au over 1.9 m.
• MTC-23-048 intersected several shallow mineralized zones at MC Central with a peak of 4.09 g/t Au over 4.1 m including 6.28 g/t Au over 2.3 m.
• Assay results from the remaining 5 holes are pending and will be announced as they are received.
• Achieved nearly 90% drilling hit rate since acquiring the Montclerg Gold Project in late 2021.
• Drilling is planned to resume in the third quarter with a focus on Montclerg and testing high-priority gold targets across the Goldarm Property.
• In addition to the planned 10-12,000 m of drilling, GFG has initiated its summer exploration activities across the Goldarm Property which include regional geophysical and geochemical surveys, prospecting, mapping and significant data compilation aimed at generating new regional targets.

GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports new high-grade gold assay results from its recently completed 13-hole 2023 Phase 1 drill program at the Montclerg Gold Project, located 40 kilometres (“km”) east of Timmins, Ontario. (see Table 1 and Figures 1-3). The results released today are from eight drill holes completed along the Montclerg gold system where GFG has continuously proven and grown a robust gold system since the Company acquired the asset in October 2021.

The Phase 1 drill program was designed to complete infill drilling to confirm continuity in the Montclerg Central area and drill significant step-out holes to determine if gold mineralization occurs over one km to the east. The Phase 1 drill program was higher risk by design as the Company believes that the opportunity to discover new zones of gold mineralization at depth and along strike at Montclerg is high.

“Over the past year, we have successfully consolidated the Goldarm property, resulting in an extensive and highly prospective regional land holding in an incredibly well-endowed and infrastructure-rich region,” stated Brian Skanderbeg, President and CEO of GFG. “Our strategy is two-fold: first, to advance and grow the Montclerg gold system into a system of critical mass, and second, to generate, develop, and systematically test a pipeline of priority drill targets across the Goldarm property. Our drilling efforts to date have primarily focused on the shallow portions of the system, where we have demonstrated strong continuity and grade. As we expand our exploration to depth and along strike, we continue to intercept high grades and outline new zones of gold mineralization, showcasing Montclerg’s strong potential for new discoveries both at depth and to the east. The same holds true for the Aljo Mine target and our other fully permitted regional targets. Our progress thus far underscores our commitment to maximizing the value of our assets and driving long-term growth for our stakeholders.”

Table 1: Initial Assay Results from the 2023 Phase 1 Drill Program at the Montclerg Gold Project

*Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off. True width is estimated to be 50 to 90% of drilled length.
** Holes MTC-23-047, 049, 050, 051 had no significant gold assays.

Commentary on Assay Results

Drill hole MTC-23-045 was designed as a significant northeastern step-out hole testing stratigraphy more than 700 m from the core of MC Central. The hole successfully intersected two new zones of gold mineralization. The upper zone lies along a mafic-felsic volcanic contact returning 2.00 g/t Au over 5.5 m, including 3.83 g/t Au over 1.2 m. Mineralization within the mafic volcanic unit consists of thin microfractures infilled with quartz carbonate with up to 3% pyrite and arsenopyrite. Mineralization within the felsic volcanic was typical of the MC Central panel, with up to 15% thin extension veins with arsenopyrite halos. The lower zone lies entirely within the footwall of the felsic volcanic unit returning 1.23 g/t Au over 6.7 m including 3.18 g/t Au over 1.0 m and is characterized by up to 7% extensional quartz-carbonate veining with up to 5% fine-grained disseminated arsenopyrite and pyrite.

The presence of considerable gold mineralization this far east of the MC Central bodes well for potential extension of the Montclerg system along strike. The nature of alteration and mineralization observed is very similar to that of the Upper and Lower Main zones at MC Central.

Drill hole MTC-23-046 was drilled to test the Montclerg Footwall zones 1 km east of MC Central. The hole was designed to test the mafic stratigraphy south of the gabbro where limited drilling has been completed. The drill hole successfully intersected 1.93 g/t Au over 10.6 m, including 6.63 g/t Au over 0.9 m and also including 4.94 g/t Au over 1.9 m in mafic volcanic rocks. The zone appears similar to the Lower Footwall zone at MC Central. The zone is characterized by strongly ankerite-altered mafic volcanics with fine-grained disseminated pyrite and arsenopyrite with up to 15% quartz-carbonate veining.

The observed mineralization in MTC-23-046 correlates well with a broad interval of low-grade gold intersected in MTC-22-044 approximately 75 m down-dip and to the west (see news release dated April 11, 2023). The continuity and moderately higher grades in MTC-23-046 demonstrate the potential for additional mineralized zones in this area that lies 1 km east of MC Central.

Drill hole MTC-23-048, was designed to test a gap within the Main Zone within the felsic volcanics as well as the extension of the Upper Footwall zone to the east. A broad zone was intersected in felsic volcanics which returned 0.50 g/t Au over 13.9 m. The zone consists of strong sericite-ankerite alteration with up to 15% quartz carbonate veins associated with halos of up to 2% arsenopyrite and pyrite. The Upper Footwall zone was intersected where expected, yielding an intercept of 4.09 g/t Au over 4.1 m including 6.28 g/t Au over 2.3 m. Strongly ankerite-altered mafic volcanics were intersected with up to 10% fine disseminated arsenopyrite and pyrite, and minimal veining. The mafic-hosted Upper Footwall zone observed (4.09 g/t Au over 4.1 m) extends the mineralized envelope modestly to depth.

Drill hole MTC-23-054, was designed to test the up-dip extension of the Upper Footwall zone. Two zones were intersected yielding 1.15 g/t Au over 3.8 m and 9.97 g/t Au over 8.1 m. The first zone is characterized by strongly altered massive mafic volcanics with up to 10% arsenopyrite and pyrite, and 3% thin, irregular quartz-carbonate veins. The second zone occurs within a strongly altered mafic flow-top breccia with up to 15% arsenopyrite and pyrite and up to 3% quartz-carbonate veining.

This high-grade intercept from the Upper Footwall zone within the MC Central significantly extends mineralization towards the surface and stands out as one of the best intercepts drilled to-date along the Montclerg trend.

Anders Carlson, Vice President, Exploration commented, “As a newcomer to the Montclerg Gold Project, I have been impressed by the local high-grade nature of this gold system and recognize the impact of local and regional faulting as major controls on mineralization. As we move forward with future drill programs at Montclerg, it will be vital to understand the nature of gold mineralization to assess gold recoveries while accelerating our appreciation of the system’s scale through step-out drilling and refinement of the geological model.”

2023 Exploration Program

In 2023, the Company’s focus will be on defining and growing the Montclerg gold deposit and testing five high-priority gold and gold-copper targets within its Goldarm Property. For the year, the Company plans to complete 10-12,000 m of drilling at multiple permitted and drill ready targets on the Goldarm Property. In addition to the planned drill programs, GFG will continue to complete extensive surface exploration across the Goldarm Property which covers 30 km of the Pipestone and North Pipestone deformation zones and is surrounded by significant gold mining infrastructure. The 2023 exploration budget will be approximately C$3.0 million and is fully funded.

Figure 1: Regional Map of GFG Gold Projects in the Timmins Gold District

https://www.globenewswire.com/NewsRoom/AttachmentNg/34d8ce0d-4dd8-4a31-adec-29f8dbc0a425

Figure 2: Goldarm Property Plan View Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/21932618-6cb7-47f8-b1dd-6f448c36e766

Figure 3: Montclerg Gold Project Plan View Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/dc00808d-6e6c-444f-a076-ac6a55113b28

Table 2: GFG Drill Hole Assay Highlights from the Montclerg Gold Project

*Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off. True width is estimated to be 50 to 90% of drilled length.

About the Goldarm Property

The Goldarm Property is a large and highly prospective land package east of the Timmins Gold Camp (see Figures 1-2). The consolidated Goldarm Property covers approximately 30 kilometres of the Pipestone Deformation Zone and the North Pipestone Deformation Zone. Within the Goldarm Property, there are several highly prospective gold targets such as the Aljo Gold Mine region, the Carr target and the Montclerg Gold Project which is the most advanced target. The Montclerg Gold Project covers 10 km of the highly prospective Pipestone Deformation Zone and is located 48 km east of the prolific Timmins Gold Camp and is adjacent to multiple current and historic gold mines (see Figure 1).

About GFG Resources Inc.

GFG is a North American precious metals exploration company focused on district scale gold projects in tier one mining jurisdictions, Ontario and Wyoming. In Ontario, the Company operates three gold projects, each large and highly prospective gold properties within the prolific gold district of Timmins, Ontario, Canada. The projects have similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold. The Company also owns 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 km southwest of Casper, Wyoming, U.S. In Wyoming, the Company has partnered with Group 11 Technologies Inc. through an option and earn-in agreement to advance the Company’s Rattlesnake Hills Gold Project with a technology that could revolutionize the gold mining industry.