KEY HIGHLIGHTS:

• Drill results from the Montclerg Gold Project continue to intersect high-grade and bulk tonnage gold intercepts demonstrating continuity and a robust gold system.
• Hole MTC-22-035 returned multiple gold zones:
  • 9.85 grams of gold per tonne over 16.0 metres in the Upper Footwall zone, 30 m from hole MTC-21-005 that graded 4.82 g/t Au over 26.0 m.
• MTC-22-034 intercepted multiple zones above 170 m depth with highlights of 1.34 g/t Au over 15.1 m and 5.26 g/t Au over 9.3 m.
• Assay results from the remaining 13 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 February with a focus on Montclerg and testing high-priority gold targets across the Goldarm Property.

GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) announces new high-grade gold assay results from its recently completed 17-hole 2022 Phase 2 drill program at the Montclerg Gold Project, located 40 kilometres east of Timmins, Ontario. (see Table 1 and Figures 1-4). The results released today are from four drill holes in the MC Central target where GFG has continuously proven and grown a robust gold system since the Company acquired Montclerg in October 2021.

During the Phase 2 drill program, the Company completed a total of 17 holes (3,541 m) on the Goldarm Property located east of Timmins, Ontario. The Phase 2 drill program was designed to complete infill drilling to advance Montclerg towards resource, step-out holes to grow the Montclerg gold system and to begin testing high-priority gold targets within the Goldarm Property such as the Aljo Gold Mine target (“Aljo”). Of the 17 holes completed, 14 holes were completed at Montclerg and three holes at Aljo. In addition to the great results today, the Company is optimistic that the remaining holes will return strong results as significant mineralized zones were observed.

“With each hole and drill program since consolidating Goldarm, we are strengthening our understanding of local and regional ore controls and growing the footprint of the system,” stated Brian Skanderbeg, President and CEO of GFG. “The results today include our best drill intercept to date at Montclerg and we are pleased to continue to hit multiple zones of gold mineralization with strong continuity at both shallow and deeper levels.”

Skanderbeg added, “The presence of multi-million-ounce gold systems on all sides of our Goldarm Property and the success we have had at Montclerg clearly demonstrate that the Timmins East region is becoming a new gold camp. Despite a long history of mining and exploration in the district, there remains much to be discovered. We are excited to receive the remaining assay results as the majority of the holes host significant mineralization and alteration over broad intervals.”

Table 1: Initial 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.

Commentary on Assay Results

Drill Hole MTC-22-031 was drilled to test the Lower Footwall Zone’s western and depth continuity. Pervasive carbonate alteration and moderate to high strain within the mafic volcanics marks mineralization. Gold mineralization is associated with trace to 20% pyrite and trace to 10% arsenopyrite disseminations with moderate quartz veining of the host rock. This zone returned 2.78 g/t Au over 7.4 m and includes 7.83 g/t Au over 2.3 m. The hole confirmed western strike continuity of Lower Footwall mineralization as well as continuity of the Upper Main Zone to the west of MTC-22-001.

Drill Hole MTC-22-034 was designed to test the Upper and Lower Main Zones 30 m below MTC-22-023. The hole demonstrated depth continuity with strong to moderate silica, and patchy to pervasive sericite alteration of the felsic volcanics. Mineralization is associated with trace to 5% quartz veining, trace to 5% disseminated arsenopyrite and trace to 1% pyrite in the wall rocks. The zone returned 1.34 g/t Au over 15.1 m.

The Upper Footwall Zone was intercepted further downhole and comprises strong carbonate and weak silica alteration of mafic volcanics. It exhibits moderate brecciation and shearing and trace to 30% quartz veining. Disseminated pyrite, 5 to 20%, and lesser arsenopyrite, trace to 10%, occur in the wall rocks. The zone returned 8.96 g/t Au over 5.4 m confirming the extension of the Upper Footwall Zone at depth.

Drill hole MTC-22-035 was drilled 30 m down-dip of hole MTC-22-005 to test the depth continuity of the Lower Footwall Zone that returned 4.82 g/t Au over 26.0 m (see news release dated February 10, 2022). The Upper Main Zone mineralization comprises patchy to strong silica and minor sericite alteration of felsic volcanics with irregular quartz veining. Disseminated pyrite, trace to 1% and arsenopyrite, trace to 5%, occur throughout the wall rock. The Main Zone mineralization returned 2.31 g/t Au over 13.2 m, including 4.07 g/t Au over 5.1 m.

Further downhole, mineralization of the Lower Footwall Zone comprises strong to pervasive carbonate alteration and patchy sericite altered mafic volcanics. There is localized blocky texture and fracturing with quartz veining ranging from 0.5 to 20%. Disseminated pyrite, 2 to 30%, and lesser arsenopyrite, trace to 5%, occur in the wall rocks. This zone returned 9.85 g/t Au over 16.0 m including 14.99 g/t Au over 7.5 m. This confirms that the Lower Footwall Zone identified in hole MTC-22-005 continues to extend to depth, with significant widths interpreted to reflect the intersection between moderately north-dipping Upper Footwall Zone mineralization and sub-horizontal mineralization associated with the Lower Main Zone.

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

https://www.globenewswire.com/NewsRoom/AttachmentNg/aa0df48e-fe00-4145-87e6-0e7ed1a266a1

Figure 2: Goldarm Property Plan View Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/24ecb11a-2c70-4e4a-9a9c-8d013a65baac

Figure 3: Montclerg Gold Project Plan View Map

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Figure 4: Montclerg Gold Project Cross Section Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/5e4de5ce-6372-4129-8afe-9375ba1d7fee

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.