KEY HIGHLIGHTS:

• First pass drilling at the Aljo Mine Target successfully returned high-grade gold intervals at shallow depths across multiple vein systems along with broader intervals of low-grade mineralization.
  • ALJ-22-002: 3.03 grams per tonne gold over 12.9 metres including 59.80 g/t Au over 0.60 m and 6.58 g/t Au over 4.3 m including 27.4 g/t Au over 1.0 m
• Hole MTC-22-044 successfully confirmed gold mineralization continues 1 km to the east of MC Central intersecting two broad zones:
  • MTC-22-044: 0.99 g/t Au over 9.7 m and 0.82 g/t Au over 7.7 m
• Since acquiring Montclerg just over a year ago, GFG has completed over 11,000 m of drilling from 47 holes and achieved approximately a 90% drilling hit rate.
• The Phase 1 2023 drill program has begun and is expected to consist of approximately 3,000 m of drilling. The program will focus on infill and step-out drilling on and around the Montclerg Gold Project.
• In 2023, the Company plans to complete three drill programs totalling 10-12,000 m of drilling. Additional exploration activities are scheduled across the Goldarm Property that include regional geophysical and geochemical surveys, mapping and significant data compilation and analysis.

GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports continued high-grade gold assay results from its 2022 Phase 2 drill program at the Montclerg Gold Project, located 40 kilometres east of Timmins, Ontario. (see Tables 1-2 and Figures 1-4). Today’s results from the final five drill holes from the 2022 Phase 2 program demonstrate strong continuity and further expansion east of the Montclerg gold system and the high-grade potential at Aljo.

Overall, the Phase 2 drill program successfully achieved its objectives of growing and demonstrating continuity at Montclerg, extending gold mineralization at least 1 km to the east and outlining the significant opportunity present at Aljo for a second robust gold system on the Goldarm Property.

“The final drill holes from our 2022 Phase 2 drill program were higher risk by design. We are very pleased to prove that this underexplored region is extremely prospective and has immense potential to host multiple gold deposits,” stated Brian Skanderbeg, President and CEO of GFG.

“Drilling east of the Montclerg gold system is very limited; so we are excited to intersect two significant zones of gold mineralization one km away from the MC Central target. Much more work and drilling is on-going and will be a priority in this new target area. Looking 30 km to the east at the Aljo target, our first pass drilling returned the highest-grade assays to date on the Goldarm Property. Drilling returned high-grade intervals at shallow depths across multiple vein systems and broader intervals of lower grade mineralization. We are very optimistic that we can continue our previous successes as we embark on our largest drilling campaign in our history.”

Table 1: Recent Assay Results from the 2022 Phase 2 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.

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 in three phases at multiple permitted and drill ready targets on the Goldarm Property. The Phase 1 2023 drill program has started with a goal to complete approximately 3,000 m of drilling from 12-14 holes at the Montclerg Gold Project and is expected to be completed near the end of April. 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.

Commentary on Assay Results

MTC-22-043 – was drilled to test the shallow felsic mineralization 40 m west of hole MTC-21-012 (see press release dated April 28, 2022), which intersected several zones of mineralization including 1.48 g/t Au over 22.6 m and 8.46 g/t Au over 5.0 m. The hole successfully intersected Upper Main and Lower Main Zones with a notable interval of 2.06 g/t Au over 7.5 m. Mineralization is hosted in massive and fractured felsic volcanics with patchy silica, moderate to strong sericite alteration and quartz veining up to 20%. Sulphides are dominantly disseminated with pyrite ranging from trace to 2% and arsenopyrite ranging from trace to 5%.

MTC-22-044 – was the most significant eastern step-out hole drilled to date. The hole was drilled approximately 1 km east of the MC Central area to confirm stratigraphy and test gold mineralization continuity, specifically the high-grade Lower Footwall Zone. The hole successfully intersected two significant zones and is highlighted by 0.96 g/t Au over 9.7 m and 0.82 g/t Au over 7.7 m. The lithology and mineralization in this hole are similar in character to the Upper Footwall Zone in the MC Central area and demonstrate prospectivity to the east. The mineralized zone is hosted in grey-green mafic volcanic stratigraphy that exhibits variable textures including brecciation, flow banding and hyaloclastite intervals. Sericite and carbonate alteration are patchy to pervasive and moderate to strong in intensity. Quartz and quartz-carbonate veining comprise up to 20% of the rock and are irregular to chaotic in nature. Pyrite occurs as trace to 12% in veins, disseminations and in breccias. Arsenopyrite comprises up to 8% and is mostly proximal to or within veining. Follow-up drilling is warranted and is on-going in the 2023 Phase1 drill program.

ALJ-22-001 – was drilled to test 35 m east of the known Aljo Mine workings. The hole successfully intersected 1.06 g/t Au over 10.3 m. Sporadic and irregular veinlets of quartz veins up to 10% and trace wispy carbonate veins occur in clusters. Strong sericite and carbonate alteration occur as vein halos. Pyrite, pyrrhotite and chalcopyrite occurs as disseminations throughout the host rock and within veins in trace amounts.

ALJ-22-002 – was drilled 25 m east of historical drilling which returned 83.63 g/t Au over 1.8 m ⁽¹⁾, on the Southern Aljo trend. The hole successfully intersected several intervals of high grade: 1) 3.03 g/t Au over 12.9 m including 59.80 g/t Au over 0.6 m; 2) 1.32 g/t Au over 14.9 m; and 3) 6.58 g/t Au over 4.3 m including 27.40 g/t Au over 1.0 m. These intervals are hosted in green to purple brecciated mafics. Silica-carbonate alteration is weak to intense and occurs as fracture fill or vein halos. Quartz and quartz-carbonate veins and breccias comprise up to 20% of the intervals. Sulphides are present with pyrite and pyrrhotite occurring as disseminations and veins in the host rock from trace up to 10%.

ALJ-22-003 – was drilled to test the historically defined “grey zone” and Kingswood Shear. The hole successfully intersected three zones of low-grade mineralization highlighted by 0.30 g/t Au over 14.4 m. Sericite-carbonate alteration is moderate to intense. Quartz and quartz-carbonate veining occurs as fracture fill and isolated veinlets up to 15% in brecciated rock. Pyrite is disseminated and within the veins from trace to 2% while pyrrhotite occurs in trace amounts within the mineralized veins.

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: Aljo Target Plan View Map⁽¹⁾

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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. 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.