KEY HIGHLIGHTS:

• Hole MTC-23-060 intercepted multiple near-surface lenses in the bulk tonnage MC Main Zone including 24.9 metres of 1.05 grams of gold per tonne and 41.8 m of 0.92 g/t Au at the Montclerg Gold Project.
• Hole MTC-23-062 returned one of the highest-grade intercepts drilled to-date within the bulk-tonnage style Main Zone of 3.09 g/t Au over 12.8 m and 1.16 g/t Au over 12.8 m near surface.
• Assay results (8 holes) from the Aljo Mine Target remain pending.
• Drilling is planned to resume in the first quarter with a primary focus at Montclerg and testing high-priority targets across the Goldarm Property.

GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports further gold assay results from the recently completed 2023 Phase 2 drill program at its Montclerg Gold Project, located 40 kilometres (“km”) east of Timmins, Ontario (see Tables 1-2 and Figures 1-6). The results released today are from two infill holes and two step-out 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.

In the Phase 2 drill program the Company completed a total of 3,613 m from 15 holes (7 at Montclerg and 8 at Aljo). The program focused on step-out and in-fill drilling at Montclerg and tested a spectrum of targets at Aljo located within the Goldarm Property east of Timmins, Ontario. The Company eagerly anticipates releasing the remaining 8 holes from Aljo in the coming weeks as several zones of gold mineralization were observed in core logging.

“To date, our Phase 2 drill program at Montclerg has been a resounding success, proving a robust gold system with multiple high-grade and bulk tonnage gold zones across the Main zones, as well as the Footwall zones,” stated Brian Skanderbeg, President and CEO of GFG. “The consistency of the results from both step-out and infill drilling demonstrate not only the strong continuity of the system but also the significant expansion potential at depth and along strike. In addition to strong results, the infill drilling has been critical in confirming the geometry and coherence of these mineral systems at shallow depths.

Moreover, we await the assay results from Aljo with great anticipation, as the core logging has indicated several promising zones of gold mineralization. Our team is highly motivated by these findings, and we are looking forward to continuing to unlock the value of our strategically located assets for our shareholders.”

Table 1: Most Recent Montclerg Gold Project Assay Results from the 2023 Phase 2 Drill Program

*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 unless otherwise stated. True width is estimated to be 50 to 90% of drilled length.

Commentary on Assay Results

Anders Carlson, Vice President, Exploration of GFG commented, “These results demonstrate both the grade upside within the Upper Main Zone as well as our commitment to drilling significant step-out holes at depth along the Lower Footwall Zone where we believe we can further expand this gold system. Along with the results today, the high-grade zone intersected earlier in the program in MTC-23-059 yielding 4.79 g/t Au over 12.8 m remains the deepest hole drilled to-date at Montclerg and we’re very pleased with the structural and grade continuity observed thus far.”

MTC-23-058 was drilled to test the dip extension of the Lower Footwall Zone (see Figures 3-5). The hole intersects approximately 13 m of weak to moderate sericite-ankerite-silica alteration in mafic volcanic rocks with up to 15% disseminated arsenopyrite and pyrite. Quartz-carbonate veins and veinlets are present throughout the zone yielding 0.79 g/t Au over 9.2 m and 2.99 g/t Au over 0.9 m. This zone is observed between two high-grade intercepts in MTC-23-057 and MTC-23-059 that graded 10.21 g/t Au over 2.7 m including 16.20 g/t Au over 1.5 m and 4.79 g/t Au over 12.8 m including 10.05 g/t Au over 4.3 m, respectively. This hole, while lower grade than those around it, confirms the increased thickness of the Lower Footwall Zone below 350 vertical metres, supporting our belief that the local change in geology has had a positive impact on overall gold endowment at depth.

MTC-23-060 was drilled to infill an area of the Main Zone and to test the upper extent of the Lower Footwall (see Figures 3-5). The hole intersected approximately 80 m of moderate to strong sericite-ankerite-silica alteration in the felsic volcanic-hosted Upper and Lower Main zones yielding intercepts of 1.05 g/t Au over 24.9 m and 0.92 g/t Au over 41.8 m, respectively, with up to 5% disseminated arsenopyrite and pyrite. Further downhole, the Lower Footwall Zone was intersected yielding intercepts of 1.95 g/t Au over 0.5 m and 0.97 g/t Au over 3.2 m within 7 m of weak to moderate ankerite and silica-altered mafic volcanic rocks. This hole fills a gap in drilling within the Main Zone and was successful in defining the upper extent of the Lower Footwall Zone, increasing our confidence in the overall geological model.

MTC-23-062 targeted an area in the Upper Main Zone which hosted high-grade gold in historical holes drilled at oblique angles and infill the Upper Footwall (see Figures 3-6). The hole intersects 1.16 g/t over 12.8 m and 3.09 g/t Au over 12.8 m in the Upper Main Zone including a high-grade core of 9.76 g/t Au over 2.9 m. This represents one of the highest-grade intercepts drilled to-date within the bulk-tonnage style Main Zone and lies 60 m below surface. Further downhole, an intercept yielding 2.41 g/t Au over 4.1 m including 8.20 g/t Au over 0.9 m is interested in the Upper Footwall Zone. These higher-grade infill holes are important as they show upside to the overall resource grade while allowing us to define the upper margins of the Lower Footwall Zone.

MTC-23-064 is a 150 m step-out to the east of MTC-23-058 along the Lower Footwall Zone as noted above (see Figures 3-5). The hole intersected approximately 7 m of weak to moderate sericite-ankerite-silica alteration in mafic volcanic rocks with up to 7% disseminated arsenopyrite and pyrite. Quartz-carbonate veins and veinlets are present throughout the zone yielding 0.66 g/t Au over 5.3 m. The hole also intersects a hanging wall zone of mineralization 250 m up-hole from the Lower Footwall Zone that grades 1.84 g/t Au over 1.8 m in similarly altered mafic volcanic rocks. The presence of the Lower Footwall Zone, albeit low-grade in this hole, is important for understanding the geological model and testing it beyond the current limits of the known deposit area. The intercepts observed over the course of the 2023 Phase 2 drill program including the deep, high-grade intercept of MTC-23-059 yielding 4.79 g/t Au over 12.8 m show that this system can be extended significantly at depth.

Outlook

Brian Skanderbeg, CEO of GFG commented, “As we look ahead to 2024, our Company is buoyed by the success and the growth opportunities that have emerged within the Goldarm Property. With this optimism, we are gearing up to resume drilling activities later in Q1 at Goldarm with a particular focus on Montclerg, Aljo and initial first pass drilling on several targets across Goldarm.

In tandem, at the Pen and Dore Gold Projects, our team is actively exploring avenues to progress these projects. Our strategic approach is not only aimed at unlocking the inherent value of these district-scale land positions but also at capitalizing on the diverse mineral potential they hold, encompassing gold, volcanogenic massive sulfide, and nickel-copper prospects. We remain steadfast in our commitment to responsibly advance our portfolio and deliver value to our stakeholders.”

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

Figure 2: Goldarm Property Plan View Map

Figure 3: Montclerg Gold Project Plan View Map

Figure 4: Montclerg Gold Project MC Central Plan View Map

Figure 5: Montclerg Gold Project Cross Section Map

Figure 6: MTC-23-062 High Grade Gold Zone of 9.76 g/t Au over 2.09 m (74.0m to 76.9 m)

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 unless otherwise stated. True width is estimated to be 50 to 90% of drilled length.
**Calculated at a 5 g/t cut-off.

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 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.