Highlights:

• All 37 holes intersected high-grade gold tailings material.
• Average assay grade of 2.04g/t Au from 171 gold tailings intercepts

Tarachi Gold Corp. (CSE: TRG) (OTCQB: TRGGF) (Frankfurt: 4RZ) is pleased to announce assay results from the tailings drilling program completed in May (see press release dated May 20^th, 2021) at the Company’s wholly owned Magistral Mill and Tailings Project in Durango, Mexico.

A total of 37 vertical auger holes were completed to depths ranging from 1.3 to 14.5 metres with an average depth of 6.6 metres. Samples were collected in 70-centimetre-long intervals using a Shelby sample capture tube system and sent to Activation Laboratories Ltd. in Kamloops, British Columbia for assaying after being logged by the Company’s geology team on site. Sample recovery averaged 95.9%. Two adjacent samples were combined to form 1.4-metre composites where possible at the lab with a total of 178 composites and samples assayed. Of the 178 samples assayed, 171 of them were determined to be composed of gold tailings and are summarized in Table 1.

The 171 gold tailings samples ranged in grade from 0.89 to 4.12g/t with an average of 2.04g/t Au. Table 2 contains the coordinates of all auger hole collars and the weighted average grade of the tailings intervals. A detailed table of sample assays, including silver and copper grades, will be posted to the Company’s website.

Tarachi CEO, Cameron Tymstra, commented: “We are incredibly pleased with the results of our tailings drilling program at Magistral. While delays at the assay labs held up this data for several months, these results confirm the historic gold grade estimates for the basin and contribute to the de-risking of the Magistral project. These grades would be impressive for any open pit mining operation, but for a project where the material has already been mined, crushed and ground, you can really get a sense of the potential value here. With assays in hand and much of the metallurgical work completed, Ausenco Engineering now has the majority of the data required to complete the resource estimate and preliminary economic assessment for Magistral, now expected in November.”

The locations of the 37 auger drill holes are shown in Figure 1. Drill holes MAG-21-17 and MAG-21-27 appear to have intercepted a small quantity of tailings originating from a different mill at the far northern corner of the Magistral tailings basin. Assay chemistry of these samples is noticeably different with lower gold grades and zinc and lead values that are 50 and 100 times greater, respectively, than the average values seen in the rest of the Magistral basin. The assays from this material were excluded from the average gold tailings grade calculation and this material might be excluded from the upcoming resource estimate due to the variation in geochemistry and lower gold grades. None of the other drill holes intercepted this material and it appears isolated to the north corner of the basin.

Ausenco Engineering will be using the results of the auger drilling program to form the basis of the resource estimation component of the upcoming preliminary economic assessment for the Magistral project.

Quality Assurance/Quality Control

Tailing samples were selected by company geologists with each sample placed into plastic bags. Sample tags were inserted into each bag before being sealed and stored at the campsite in a secure area. At the completion of the program the samples were transported by company trucks directly to Tarachi’s secure facility in Hermosillo, Mexico for transport to Canada.

All 178 samples from the 37 vertical, auger drill holes completed were shipped to Activation Laboratories Ltd. in Kamloops B.C. Canada for sample preparation and analysis. 30 grams from each sample was analyzed for gold by Fire Assay Fusion with an AA (atomic absorption finish) as well, 0.5 grams of each sample was digested by Agua Regia and then analyzed using an ICP for a 38-element suite. Activation Laboratories is ISO/IEC 17025:2017 and ISC 9001: 2015 accredited and/or certified.

Control samples comprising of certified reference samples, duplicates and blanks were systematically inserted into the sample stream and analyzed as part of the company’s quality assurance / quality control protocol.

About Tarachi Gold

Tarachi Gold is a Canadian-listed junior gold exploration company focused on exploring and developing projects in Mexico. Tarachi acquired the Magistral Mill and tailings project in Durango, Mexico in 2021. Magistral includes a 1,000 tpd mill and access to a tailings resource (non-compliant with NI 43-101) estimated to contain 1.29Mt at 2.06g/t Au which the Company expects to bring into production in 2022. The historical estimate was completed by Corporation Ambiental de Mexico S.A. de C.V. (CAM) in 2011 which helped only in determining the drill collar locations of the Company’s recently completed drilling program as part of the ongoing Magistral preliminary economic assessment (PEA). Tarachi’s qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserves. The issuer is not treating the historical estimate as a current mineral resource or mineral reserves.

The Company also has exploration projects covering 3,708ha of highly prospective mineral concessions in the Sierra Madre gold belt of Sonora, Mexico in close proximity to Alamos Gold’s Mulatos mine and Agnico Eagle’s La India mine.

Qualified Person

Lorne Warner, P.Geo, VP Exploration and Director of the Company is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.

Figure 1 – Map of Auger Hole Collar Locations (CNW Group/Tarachi Gold Corp.)