• Hole K-22-157 intersected 3.53 g/t Au over 6 metres from 37 metres including 5.71 g/t Au over 3 metres in altered and sulphidised gabbro.
• The mineralization was intersected in just the third diamond drill hole at the Midway target.
• Midway lies between the Appleton Fault Zone and the Dog Bay Line, approximately 2.7km North of Big Vein and 1.4km southwest of the Cracker gold occurrence.
• The new discovery at Midway, along strike from the Cracker gold occurrence, opens up a potential second gold mineralized system subparallel to the Appleton Fault Zone.

Labrador Gold Corp. (TSX-V:LAB) (OTCQX:NKOSF) (FNR: 2N6) is pleased to announce a new discovery of near surface gold mineralization from diamond drilling at the Midway target at its 100% controlled Kingsway project near Gander, Newfoundland. This hole was drilled as part of the Company’s ongoing 100,000 metre drill program and represents a new target for gold at Kingsway.

Hole K-22-157 was drilled to test anomalous gold values at the Midway target and intersected 3.53 g/t Au over 6 metres from 37 metres including 5.71 g/t Au over 3 metres. Midway lies between the Appleton Fault Zone and the Dog Bay Line, two major structures in the region, approximately 2.7km north of Big Vein and represents a different mineralized system. The gold mineralization was intersected in just the third diamond drill hole at Midway. The mineralization is hosted by a strongly altered and sulphidised gabbro that intruded the siltstone and sandstone. Higher gold grades are associated with increased pyrite and arsenopyrite abundance and strong potassic feldspar, carbonate and silica alteration.

“The gold mineralization intersected at Midway represents a different style of mineralization than what we see at Big Vein. It is similar to that found at the Cracker gold occurrence approximately 1.4 kilometres northeast of Midway,“ said Roger Moss, President and CEO of the Company. “This new discovery at Midway, in addition to the gold mineralization at Cracker, opens up a potential second mineralized system at Kingsway. We know that gabbroic intrusions occur intermittently along strike to the northeast and southwest of Cracker and Midway and believe that these intrusions have come up along a structure subparallel to the Dog Bay Line and the Appleton Fault Zone. While our main focus remains generating and drilling targets along the Appleton Fault Zone, we will continue to investigate the potential of the gabbro hosted gold mineralization on the property.”

Table 1. Summary of Assay Results

All intersections are downhole length as there is insufficient Information to calculate true width.

Figure 1. Midway plan map

https://www.globenewswire.com/NewsRoom/AttachmentNg/71f5168c-2c1a-4823-80ca-80f5f207de79

Figure 2. Location map showing Midway and other gold occurrences at Kingsway.

https://www.globenewswire.com/NewsRoom/AttachmentNg/4809990f-9bfe-4064-8fc6-2c84e89c1109

Table 2. Drill hole collar details

Midway and Cracker gold occurrences

Gold mineralization at both Midway and Cracker is hosted by altered gabbro. Quartz-carbonate alteration is present in both cases, with K-feldspar alteration also prominent at Midway. Disseminated pyrite and arsenopyrite are also associated with the gold mineralization. Historical grab samples from the Cracker occurrence include assays of 61.73 g/t, 33.87 g/t and 16.4 g/t Au. It is believed that these gold occurrences represent the presence of a fertile structure developed by the rheological contrast between the gabbro and the sediments forming the country rock. (Note that grab samples are select samples and are not necessarily representative of gold mineralization found on the property).

Gabbroic intrusions are known to occur along strike to the northeast and southwest of the Cracker and Midway occurrences and extend intermittently across the entire property, a distance of approximately 21 kilometres. Samples from some of these gabbros have returned anomalous gold mineralization suggesting the potential for an extensive mineralized system subparallel to the Appleton Fault Zone and the Dog Bay Line.

QA/QC

True widths of the reported intersections have yet to be calculated. Assays are uncut. Samples of HQ split core are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routinely analyzed for gold by standard 30g fire assay with atomic absorption finish as well as by ICP-OES for an additional 34 elements. Samples containing visible gold are assayed by metallic screen/fire assay, as are any samples with fire assay results greater than 1g/t Au. The company submits blanks and certified reference standards at a rate of approximately 5% of the total samples in each batch.

Qualified Person

Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.

The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.

About Labrador Gold

Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.

In early 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with gold occurrences in the region, including those of New Found Gold immediately to the south of Kingsway. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 50,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone following encouraging early results. The Company has approximately $28 million in working capital and is well funded to carry out the planned program.

The Hopedale property covers much of the Florence Lake greenstone belts that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt (see news release dated January 25^th 2018 for more details). Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.