KEY HIGHLIGHTS:

• Hole MTC-23-057 returned the deepest high-grade Lower Footwall intercept to-date at the Montclerg Gold Project yielding 10.21 grams of gold per tonne over 2.7 m including 16.20 g/t Au over 1.5 metres from 330 m below surface.
• Hole MTC-23-056 intersected multiple zones at MC Central highlighted by 0.92 g/t Au over 33.0 m in the Lower Main Zone and 5.78 g/t Au over 1.1 m in the Lower Footwall Zone.
• The Phase 1 drill program was highly successful with additional highlight intercepts of (see news release dated June 27, 2023)
  • Hole MTC-23-054 returned multiple gold zones with a highlight of 9.97 g/t Au over 8.1 m 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 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 4.10 g/t Au over 4.1 m.
• Drilling is planned to resume in mid-September with a primary focus at Montclerg and testing high-priority targets across the Goldarm Property.

GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports the final gold assay results from its 13-hole 2023 Phase 1 drill program at the Montclerg Gold Project, located 40 kilometres east of Timmins, Ontario (see Tables 1-2 and Figures 1-6). The results released today are from five 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 MC Central area and drill significant step-out holes up to one km to the east. Overall, the drill program was successful in proving continuity along strike and at depth in the MC Central and proving the potential for additional discoveries over a km east of MC Central.

“Our Phase 1 drill program at Montclerg was a resounding success, revealing the potential to intersect high-grade gold and to grow the system in all directions. With our strategic focus on expanding the Upper and Lower Footwall Zones, coupled with the Upper and Lower Main Zones, we have effectively broadened the gold system both along strike and up-dip,” stated Brian Skanderbeg, President and CEO of GFG. “The Phase 1 drill program was pivotal in bolstering our understanding that the Montclerg geology remains consistent, while still holding untapped opportunities. As we move forward, anticipate our sustained commitment to Montclerg Central, recognizing its depth and surface potential. Moreover, we remain committed to step-out drilling at depth and to the east of Montclerg and testing regional targets on our Goldarm Project for the next discovery. Drilling is set to resume in the coming weeks, and we are confident that we can continue to demonstrate further success.”

Table 1: Final 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 with a minimum 0.5 gram-metre product. 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 at a minimum 5 gram-metre product. 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-23-052 was drilled to test the mafic volcanic corridor 1.3 km east of MC Central. The hole was centered on an 800 m wide gap in drilling and intersected 1.09 g/t Au over 0.6 m with weak to moderate quartz-carbonate veinlets rimmed by pyrite. The presence of significant alteration and sulphide coupled with gold mineralization shows that this new area hosts potential for additional mineralized zones within the eastern basalt panel that will be tested in future drill campaigns.

Drill hole MTC-23-053 was designed to test the up-dip extension of the Upper Footwall Zone. One zone was intersected yielding 1.27 g/t Au over 0.8 m. The mineralization is characterized by strongly altered massive mafic volcanics with a 0.1 m wide smokey quartz vein with a strong mineralized halo of arsenopyrite and pyrite.

Drill hole MTC-23-055 tested the up-dip extension of the Upper Footwall Zone and intersected 1.70 g/t Au over 2.8 m. The mineralization is characterized by strongly altered massive mafic volcanics with up to 15% quartz-carbonate veins and up to 10% arsenopyrite and pyrite.

Drill hole MTC-23-056 was designed to test the Main Zone and the up-dip extension of the Lower Footwall Zone. Three mineralized intervals were intersected within this hole. A broad zone was intersected in the MC Main Zone grading 0.92 g/t Au over 33.0 m. The Main Zone is characterized by sericite-altered felsic volcanics with up to 30% quartz-carbonate veins and up to 3% arsenopyrite and pyrite. The Lower Footwall Zone yielded 4.05 g/t Au over 1.0 m and is characterized by strongly altered mafic volcanics with up to 8% arsenopyrite and pyrite and 20% quartz-carbonate veins. Additional mineralization was intersected down-hole in the Lower Footwall Zone yielding 5.78 g/t Au over 1.1 m and is characterized by strongly altered mafic volcanic, 2% quartz-carbonate veins and up to 5% pyrite and arsenopyrite.

Drill hole MTC-23-057 tested the down-dip extension of the Lower Footwall Zone. Three mineralized intervals were intersected in this hole. A narrow zone was intersected in the Main Zone yielding 2.25 g/t Au over 2.3 m. The Main Zone is characterized by sericite-altered felsic volcanics with up to 3% quartz-carbonate veins and up to 5% arsenopyrite, pyrite and pyrrhotite. The Lower Footwall Zone yielded a high-grade intercept of 10.21 g/t Au over 2.7 m including 16.20 g/t Au over 1.5 m and is characterized by strongly altered mafic volcanic, minor veining and up to 20% arsenopyrite and pyrite (see Figure 6).

This hole is of particular significance as it is the deepest high-grade intercept of the Lower Footwall at Montclerg to-date. The intercept lies at a vertical depth of 330 m and clearly demonstrates continuity of the gold system at economic grades and widths.

Anders Carlson, Vice President, Exploration commented, “The presence of high-grade drill intersections at economic widths below 300 vertical metres at Montclerg is very encouraging for extending this gold system at depth. The upcoming Phase 2 drill program will take aim at larger step-outs along the Lower Footwall Zone to better test the overall gold endowment at Montclerg.”

2023 Exploration Program

For the remainder of the year, 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. In addition, starting in a couple of weeks, the Company plans to resume exploration at the Goldarm Project with approximately 5,000 m of drilling. The Phase 2 program is expected to be completed before year-end. In addition to the Phase 1 and 2 drill programs, GFG is advancing an extensive surface exploration across the Goldarm Property which covers 30 km of the Pipestone and North Pipestone deformation zones. The 2023 exploration budget is approximately C$3.0 million and is fully funded.

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

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Figure 2: Goldarm Property Plan View Map

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Figure 3: Montclerg Gold Project Plan View Map

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Figure 4: Montclerg Gold Project MC Central Plan View Map

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Figure 5: Montclerg Gold Project Cross Section Map

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Figure 6: MTC-23-057 High Grade Gold Zone

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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 with a minimum 0.5 gram-metre product. 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 at a minimum 5 gram-metre product. 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 (“km”) 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.