KEY HIGHLIGHTS:

• Hole MTC-23-059, a 150-metre step-out hole down-dip, returned 4.79 grams of gold per tonne over 12.8 metres including 10.05 g/t Au over 4.3 m at the Montclerg Gold Project.
• Hole MTC-23-063 returned 3.38 g/t Au over 5.8 m near surface.
• Assay results from 12 holes remain pending.
• Drilling is planned to resume in February with a primary focus at Montclerg and testing high-priority targets across the Goldarm Property.
• Completed a first pass till sampling program consisting of 224 samples across the Dore Gold Project (“Dore”), located south of the Pen Gold Project and adjacent to IAMGOLD, Evolution and Newmont.

GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports initial gold assay results from its recently completed 2023 Phase 2 drill program from its Montclerg Gold Project, located 40 kilometres east of Timmins, Ontario (see Tables 1-2 and Figures 1-6). The results released today are from three 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.

In the Phase 2 drill program the Company completed a total of 3,613 m from 15 holes (7 at Montclerg and 8 at the Aljo Mine Target). The Phase 2 drill program focused on step-out and in-fill drilling at Montclerg and to test a spectrum of targets at Aljo located within the Goldarm Property east of Timmins, Ontario. In addition to the results today, the Company is optimistic that the remaining 12 holes will return strong results as significant mineralized zones were observed.

“Our Phase 2 drill program, which focused on expanding the potential of Montclerg through strategic step-outs and in-fill drilling, while also testing several targets proximal to the Aljo mine environment was highly successful,” stated Brian Skanderbeg, President and CEO of GFG. “At Montclerg, the assays confirm a robust gold system plunging beyond 400 m and remains open for expansion. In particular, hole MTC-23-059, a 150-metre step-out, exceeded our expectations hitting the zone as predicted and with increased thickness and more intense alteration, which speaks volumes about the continuity and potential growth at Montclerg. Looking ahead, we are excited to advance our exploration efforts at Goldarm and to continue developing regional targets across our properties in 2024. It’s an exciting time for GFG as we delve deeper into the potential of our assets and strengthen our position in the Timmins Gold District.”

Table 1: Initial Assay Results from the 2023 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 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.

Commentary on Assay Results

Anders Carlson, Vice President, Exploration commented, “Hole MTC-23-059 demonstrates a meaningful change in the thickness of the Lower Footwall Zone from 2-5 m to over 10 m within an even broader alteration and veining envelope. This change is an exciting development and confirms this as a viable target for defining future underground resources.”

Drill hole MTC-23-059 was drilled to test the down-dip extension of the Lower Footwall Zone at MC Central (see Figures 3-6). The hole intersected approximately 22 m of moderate to strong sericite-ankerite-silica alteration in mafic volcanics with up to 35% disseminated arsenopyrite and pyrite. Quartz-carbonate veins and veinlets are present throughout the zone yielding 4.79 g/t Au over 12.8 m including 10.05 g/t Au over 4.3 m. This intercept is the best zone drilled in the Lower Footwall Zone to-date and represents a 150 m step-out from high-grade zones intersected during the Phase 1 2023 drill program (MTC-23-057 – 10.21 g/t Au over 2.7 m).

Drill hole MTC-23-061 was drilled to infill gaps in the Main and Upper Footwall zones while testing the up-dip extension of the Lower Footwall Zone as it approaches the ultramafic contact (see Figures 3-6). The hole was successful in intersecting significant grade in each of the three zones with the most encouraging results coming from the Lower Footwall Zone where two closely spaced zones were observed yielding 4.45 g/t Au over 2.5 m and 3.15 g/t Au over 3.3 m. Seeing this up-dip continuity of the Lower Footwall Zone is important as it allows us to maximize the extent of the zone before it terminates against the upper ultramafic contact.

Drill hole MTC-23-063 was drilled to test the up-dip extension of the Upper Footwall Zone (see Figures 3-6). The hole yielded an intercept of 3.38 g/t Au over 5.8 m including 8.18 g/t Au over 1.8 m in carbonate and silica-altered mafic volcanics hosting up to 15% arsenopyrite and pyrite with associated quartz-carbonate veining. This intercept successfully pulls the Upper Footwall Zone closer to surface in an area that lacked drill density.

Dore Gold Project Till Sampling Program

From September to November, the Company collected 224 bulk till samples across the 212 square kilometre Dore land package with the objective of defining new gold targets. The Dore project is an underexplored region that is near several multi-million-ounce gold deposits and mines such as the Cote Gold Project and Newmont’s Borden gold mine (see Figure 1). The till samples will be analyzed with the goal of outlining new large-scale gold anomalies. The Dore property hosts two major gold-bearing shear-hosted structures, the Rideout and Rundle deformation zones, that are very underexplored on our property. The till survey will be followed-up by significant compilation and targeting over the winter in order to generate new prospecting targets for the 2024 summer field season. We expect this to lead to our first-ever drilling campaign at Dore in Q4-2024.

Anders Carlson, Vice President, Exploration commented, “The Swayze Greenstone Belt has become increasingly desirable to mid-tiers and majors with commercial production set at Cote for Q1-2024 and a recent up-tick in overall exploration activity. We’re pleased to be strategically located and are excited to advance our Dore project through aggressive exploration programs over the next 24+ months.”

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-23-059 High Grade Gold Zone (424.2 m to 437.0 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.