P2 Gold Inc.  (TSX-V:PGLD) reports on the Phase Two drill program at its Silver Reef Property located in northwest British Columbia.

The Silver Reef Phase Two exploration drill program was completed in September, consisted of four holes totaling 374 meters, and intersected up to 410 g/t silver. Two of the drill holes targeted the Northwest Zone, with the remaining two holes targeting the Main Zone. (See Table 1 for Phase Two drill results.) Both zones host epithermal silver/gold/lead/zinc mineralization similar in style to other deposits in the North American Silver Belt.

Phase Two drilling at the Northwest Zone has shown grade is improving with depth and confirmed the continuity of the mineralization along strike. Hole SR-011, which was drilled approximately 70 meters down dip from hole SR-009 and approximately 50 meters down dip from hole SR-010, intersected 7.49 meters grading 188.5 g/t silver and 2.5% combined lead/zinc, grades which are significantly higher than those two previously reported holes (see news release of September 29, 2020). Hole SR-012 was collared approximately 125 meters along strike to the southeast of holes SR-009 and SR-010 and intersected a zone similar in grade and thickness as those holes, contained within a 22-meter-thick zone of anomalous mineralization.

Select drill results include:

• Hole SR-011 (Northwest Zone) intersected 0.24 g/t gold, 188.5 g/t silver, 0.99% lead and 1.51% zinc over 7.49-meters, including a 1.68-meter interval grading 0.55 g/t gold, 410.69 g/t silver, 2.38% lead and 3.18% zinc; and
• Hole SR-012 (Northwest Zone) intersected 0.21 g/t gold, 14.18 g/t silver, 0.20% lead and 0.39% zinc over 22.38 meters, including a 5.70-meter interval grading 0.11 g/t gold, 27.6 g/t silver, 0.28% lead and 0.43% zinc.

A plan map and drill hole sections of the Silver Reef 2020 Phase Two drill program are available at www.p2gold.com.

Mapping and prospecting at Silver Reef conducted during the 2020 exploration program has shown that the Main Zone and Northwest Zone are separate, parallel trends located within a stacked system of multiple zones that are currently exposed over five kilometers. The mineralization identified to date is associated with moderately metamorphosed sediments along the margins of felsic dykes, which have a moderate to strong magnetic signature. Based on the knowledge gained from mapping and prospecting combined with the results of the airborne geophysical survey that formed part of the 2020 exploration program, the Northwest Zone potentially extends at least 10 kilometers to the south and the Main Zone potentially extends another two to four kilometers to the south. In addition, the airborne geophysical survey identified numerous other magnetic lineaments which are prospective for exploration. Planning for the 2021 field season is underway, which is expected to include prospecting, mapping, and soil sampling to identify targets along these trends, followed by drilling.

Table 1: Selected Silver Reef Property Drill Results, December 2020 (SR-011 to SR-014) ^{(1, 2)}

Quality Assurance

Amanda Tuck, P.Geo is the qualified person responsible for the Silver Reef Property and has reviewed, verified and approved the scientific and technical information in this news release relating thereto.

About P2 Gold Inc.

P2 is a mineral exploration and development company focused on advancing precious metals discoveries and acquisitions in the Pacific Northwest.