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Blue Star Gold Drills 14.95 g/t over 13.80 Metres at the Flood Zone on Its Ulu Gold Property

Drill Results Mine Development & Operations

Blue Star Gold Drills 14.95 g/t over 13.80

Metres at the Flood Zone on Its Ulu Gold

Property

Vancouver, British Columbia--(Newsfile Corp. - January 14, 2021) -

Blue Star Gold Corp.

(TSXV:

BAU)

(FSE: 5WP)

("Blue Star" or the "Company") announces the final assay results from the 2020

exploration program at its Ulu and Hood River properties. The properties are located approximately 525

km NNE of Yellowknife, NT in the Kitikmeot region of western Nunavut. Kugluktuk is approximately 210

km to the NW.

Highlights:

7,621 metres were drilled in thirty-eight diamond drill holes during the 2020 program.

Ten holes were drilled at the Ulu and Gnu Zone deposits to expand known resources and provide

data for resource modeling, and twenty-eight holes were drilled to test exploration targets on both

the Ulu and Hood River properties, including fourteen in the North Fold Nose (NFN) Zone.

Assay results for the final seventeen holes and the balance of assays from two previously reported

holes are included in this news release, as well as an overall summary of the 2020 program.

Highlight gold assay results for the Flood Zone (BS2020ULU-005) reported today include:

14.95 g/t Au over 13.8 m (upper zone)

from 426.2 - 440.0 m; and,

9.65 g/t Au over 6.00 m (lower zone)

from 459.0 - 465.0 m.

See Tables 1 and 2 below for a summary of the results for the holes reported today, and Table 3

for a summary of all highlight gold composites for the 2020 program.

Next Steps, Upcoming Milestones:

A comprehensive GIS compilation of all technical data for the projects is ongoing, which will lead to

an updated geologic model for the Flood and Gnu Zone deposits.

An updated resource estimate for the projects is planned to follow the compilation noted above; in

addition to the Flood and Gnu Zone deposits, it is anticipated that sufficient data will be available

to complete an initial resource estimate for the NFN Zone.

Exploration Focus Going Forward:

There is excellent resource expansion potential at the Flood and Gnu Zone deposits, and

strong potential for new discovery proximal to these deposits and regionally on the extensive

landholdings held by the Company.

The early results from the extensive GIS compilation and targeting work ongoing is yielding

several high-quality near surface targets within ~1km radius of the Flood Zone.

Detailed planning for the 2021 exploration program is underway:

The primary exploration focus will be on expanding resources at the known deposits

(Flood and Gnu) and testing high priority targets proximal to the known deposits on the

Ulu property.

The secondary exploration focus will be regional targeting/testing over the extensive

and highly prospective Hood River property, where numerous high-grade gold

showings exist.

Ulu and Hood River Properties Overview:

The Ulu lease and the contiguous Hood River property together encompass approximately 9,000

hectares of highly prospective exploration ground. The Ulu lease hosts the advanced stage Flood and

Gnu Zone gold deposits, where a significant high-grade gold resource has been outlined. Several

additional gold zones (including NFN, Zebra, Bizen, Apex and Contact Zones) are spatially related to the

axis of the ~5 km long Ulu regional fold which extends from the Ulu lease onto the north Hood River

property (see Figure 1). The Hood River property is contiguous to the Ulu lease to the north, east and

south, and hosts over twenty known gold showings (see Figure 1). Many of the high-priority target areas

outside of the Flood Zone have only been tested with relatively shallow drilling, and the potential

throughout the properties to host new discoveries at depth is considered high.

2020 Exploration Program Summary Highlights:

The 2020 exploration program entailed 7,621 metres of diamond drilling in thirty-eight diamond drill

holes on the Ulu and Hood River properties. Below is an overall summary of the program, including

diamond drill holes that were reported in previous news releases (see news releases dated September

30 and October 28, 2020).

Ulu Lease:

The 2020 drill program at the

Flood

Zone comprised six drill holes (BS2020-ULU-001 to BS2020-ULU-

006). The purpose of the drilling was to provide additional geologic information and confirm certain

aspects of the geologic model of the deposits, to improve drill hole density and to allow for possible

upgrading of the resource category. Drill hole BS2020-ULU-005 (reported today) tested inferred

resource blocks at a vertical depth of approximately 400 metres. The hole intercepted a series of

mineralized zones from a downhole depth of 425.0m to 469.0m including 14.95 g/t Au over 13.80m

(426.20 - 440.0m) and 9.65 g/t Au over 6.0m (459.0 - 465.0m). The azimuth and dip of the hole at this

intercept point is approximately 242 and -62 degrees respectively. Mineralization occurs as fine to

coarse grained disseminated arsenopyrite along with fine grained pyrrhotite, pyrite and chalcopyrite

associated with smoky quartz veins within a calc-silicate alteration envelope. Previous modelling

indicates that the Flood Zone is near vertical in the area of BS2020-ULU-005's intercepts. The results of

this hole potentially allows for an improvement in the resource grade and a change of the resource

category from inferred to indicated status in this area. Holes BS2020-ULU-001 to 004 and 006 were

reported previously (see news releases dated September 30 and October 28, 2020).

The

Gnu

Zone, which is 700m north of the Flood Zone, can be traced over approximately 625 metres in

a NW-SE direction. Mineralization typically occurs as finely disseminated acicular arsenopyrite

associated with pervasive calc-silicate alteration, similar to that found in the Flood Zone. Polymetallic

quartz veins are also present in the Gnu Zone. The high grade gold mineralization intersected in

BS2020ULU-007 (52.7 g/t Au over 2m, see news release dated October 28, 2020) has a polymetallic

signature with highs of 0.8% Pb, 0.7% Zn, 57.5 ppm Ag and anomalous bismuth. BS2020ULU-007 was

collared 30m east of historic hole 92VD161 (14.7 g/t Au over 3.22m from a polymetallic quartz vein).

Subsequent drill holes BS2020ULU-008 through BS2020ULU-010, which were drilled in the vicinity of

BS2020ULU-007 and 92VD161, did not intersect significant gold values. The geometries of the different

styles of mineralization present have not yet been resolved with the limited amount of drilling (20 holes

totalling 2,167m) completed to date. The geologic model for the Gnu Zone is planned to be updated as

part of the property wide data assessment and compilation program underway.

At the

Contact

Zone, which is approximately 1.8 km north of the Flood Zone, mineralization occurs in

quartz veins and stockworks, and sulphide replacement zones. The vein-type is associated with haloes

of pervasive sericite ±silica altered basalt with pyrrhotite, arsenopyrite, pyrite and arsenopyrite. The best

mineralization intersected in the two holes drilled in 2020 was 3.96 g/t Au over 1.0m in hole

BS2020ULU-011.

Hood River North:

The 2020 drill program tested targets along the east limb of the Ulu anticline including the NFN, INT,

Bizen, and Apex Zones. The fold limb is expressed as a topographic break coincident with the steeply

east dipping contact between basaltic volcanic and biotite-cordierite metasedimentary rocks.

At the

NFN

Zone

,

fourteen drill holes (HR20-13 to HR20-26) were drilled in an area 215 metres long by

100 metres wide to a maximum depth of 180 metres from surface. The NFN Zone is a south dipping

synform with mineralization focused along a shear zone dividing basaltic volcanics and biotite-cordierite

schists. Anomalous gold values occur in quartz-carbonate-sericite-pyrrhotite-arsenopyrite-chalcopyrite

shear vein fillings. An envelope of biotite and calc-silicate alteration extends tens of metres into the

hanging wall basalts. All the holes drilled at the NFN intersected the targeted structure and 12 out of 14

returned significant gold grades. The mineralized intervals were typically between 2 and 4 metres wide.

Higher grade intercepts included 13.87 g/t Au over 3.00m (HR20-17) and 13.18 g/t Au over 2.00m

(HR20-13). Only 2 drill holes (HR20-19 and HR20-26) failed to return anomalous gold values. These two

holes tested the northwestern and southern boundaries of drill coverage and intersected the targeted

contact, however, only moderate silicification and traces of arsenopyrite was observed. It is expected

that the results of the 2020 exploration program will provide enough data to complete the first resource

estimate for this Zone (see news releases dated September 30 and October 28, 2020 for additional

results).

The

INT

Zone is located between the NFN and Bizen Zones along the east limb of the Ulu anticline.

Channel sampling conducted in 2019 resulted in one sample grading 25 g/t Au (Y622120). Follow up

drilling in 2020 included two drill holes, HR20-27 and HR20-28. A one metre interval of anomalous gold

in HR20-27 occurs in a shear zone containing medium grained pyrrhotite and pyrite altered with patchy

actinolite and biotite.

One hole at the

Bizen

Zone

(

Hole HR20-29) was drilled to test for mineralization near the contact

between mafic volcanics and metasediments. Gold-bearing mineralization is hosted in a unit of basaltic

tuffaceous metagreywacke. Anomalous gold values are localized to thin, typically less than 10 cm,

quartz-calc-silicate veins with medium-course grained pyrrhotite, chalcopyrite and arsenopyrite. Patchy

biotite alteration extends several metres outward from and is overprinted by sericite proximal to the gold-

bearing veins.

The

Apex

Zone is located 350 - 700 metres north of the Contact Zone. It is characterized by two zones

of discontinuous gossans that merge toward the north. Mineralization occurs as quartz veins associated

with biotite ±silica alteration and enriched in biotite, chlorite and minor actinolite. Mineralization

encountered during the current program was generally weak and consisted of minor pyrite and

arsenopyrite in narrow stringers that tend to parallel the regional, north-south oriented structure. Three

diamond drill holes were completed in the area during the program to test sulphide bearing calc silicates

and to improve the geological knowledge on the target. The highest-grade gold mineralization was

intersected in HR20-032 (3.53 g/t Au over 2.00m).

Hood River East:

The Hood River East property holes were designed to test early-stage targets throughout the highly

prospective property. The promise of the Hood River East ground stems from the fact that it shares the

same deformation history (including tight folding) and the same volcano-sedimentary stratigraphic

sequences as the Flood Zone.

At the

Crown

showing, mineralization occurs as quartz veins and sulphide replacement zones and

stockworks. The veins are associated with haloes of pervasive biotite ±silica alteration and contain

sulphides (predominantly pyrrhotite with minor amounts of pyrite and arsenopyrite). The basalt is

moderately to strongly altered. Three diamond drill holes were completed to test mineralization near the

volcanic and metasediments contact. The highest-grade gold mineralization was intersected in HR20-

033 (2.33 g/t Au over 2.00m). The prospective trace of the north trending fold axis, which links the Crown

showing to the Pro Zone 4 km to the north, remains untested.

At the PC showing in the

Penthouse

Lake area, mineralization occurs in sediment-hosted polymetallic

quartz veins within massive sulphide lenses proximal to a mafic volcanic-sediment contact. Three

diamond drill holes were completed here. The highest-grade gold assay of 2.53 g/t Au over 0.95m

(HR20-038 20.0 to 20.95m) was returned from a zone of massive sulphides with quartz veining. Base

metal values in this zone included highs of 9.6% Zn, 0.4% Cu and 0.9% Pb over 0.55m (20.95 to

21.50m).

Table 1. Ulu Property Gold Assay Results Reported Today:

Hole ID

From (m)

To (m)

Width m

Au (g/t)

Comments

BS2020ULU-005

426.2

440

13.8

14.95

upper zone

AND

446

449

3

11.57

AND

453

455

2

9.26

AND

459

465

6

9.65

lower zone

BS2020ULU-008

NSV

No Significant Value

BS2020ULU-009

NSV

No Significant Value

BS2020ULU-010

NSV

No Significant Value

BS2020ULU-011

53

54

1

3.96

Table 2. Hood River Property Gold Assay Results Reported Today:

Hole ID

From (m)

To (m)

Core Length (m)

Au (g/t)

Comment

HR20-021*

*

141.5

143

1.5

6.39

incl

142.1

143

0.9

8.70

HR20-026

NSV

No Significant Value

HR20-029

156

157

1

1.37

AND

164

165

1

2.73

HR20-030

NSV

No Significant Value

HR20-031

95

96

1

1.43

HR20-032

34

36

2

3.53

HR20-033

12

14

2

1.15

AND

36

38

2

2.33

incl

36

37

1

3.02

HR20-034

NSV

No Significant Value

HR20-035

9

10

1

3.7

HR20-036

23

24

1

1.14

HR20-037

10

11

1

1.24

AND

17

21

4

1.37

HR20-038

16

17

1

1.23

AND

20

20.95

0.95

2.53

* Intervals listed in the above tables are core length, and not true width. All assay values are uncut.

** These intervals were reported with results

from HR20-022 in the news release dated Sept. 30, 2020.

Table 3. Highlight Gold Composites from 2020 Program on Ulu and Hood River Properties:

Hole ID

Zone or Target

From(m)

To(m)

Width (m)

Au (g/t)

BS2020ULU-002

Flood

9

16

7

13.42

BS2020ULU-003

Flood

13

22

9

8.67

"

Flood

110

118

8

8.26

"

Flood

160

164

4

8.17

BS2020ULU-005

Flood

426.2

440

13.8

14.95

Flood

459

465

6

9.65

BS2020ULU-006

Flood

407

411

4

12.5

"

Flood

432

436

4

9.98

"

Flood

487

501

14

4.23

"

Flood

504

511

7

12.5

BS2020ULU-007

Gnu

25

27

2

52.7

HR20-013

NFN

109

111

2

13.18

HR20-014

NFN

118

122

4

7.59

HR20-016

NFN

143

145

2

10.85

HR20-017

NFN

164

167

3

13.87

* Composite intervals listed in the above table are core length, and not true width. All assay values are uncut.

Table 4: Ulu Project Diamond Drill Hole Summary:

Hole Name

Project Name

Target Name

Azimuth

Dip

Total Metres Drilled

BS2020ULU-001

ULU PROJECT

FLOOD

17

-65

400

BS2020ULU-002

ULU PROJECT

FLOOD

270

-50

17

BS2020ULU-003

ULU PROJECT

FLOOD

270

-55

350

BS2020ULU-004

ULU PROJECT

FLOOD

205

-62

641

BS2020ULU-005

ULU PROJECT

FLOOD

230

-57

536

BS2020ULU-006

ULU PROJECT

FLOOD

216

-61

542

BS2020ULU-007

ULU PROJECT

GNU

27

-50

170

BS2020ULU-008

ULU PROJECT

GNU

27

-65

101

BS2020ULU-009

ULU PROJECT

GNU

27

-45

130.5

BS2020ULU-010

ULU PROJECT

GNU

27

-60

142

BS2020ULU-011

ULU PROJECT

CONTACT

234

-55

284

BS2020ULU-012

ULU PROJECT

CONTACT

275

-50

383

Total

3696.5 m

Table 5: Hood River Project Diamond Drill Hole Summary:

Hole Name

Project Name

Target Name

Azimuth

Dip

Total Metres Drilled

HR20-013

HOOD RIVER PROJECT

NFN

40

-55

126

HR20-014

HOOD RIVER PROJECT

NFN

40

-73

151

HR20-015

HOOD RIVER PROJECT

NFN

240

-79

181

HR20-016

HOOD RIVER PROJECT

NFN

240

-58

210.5

HR20-017

HOOD RIVER PROJECT

NFN

240

-45

215

HR20-018

HOOD RIVER PROJECT

NFN

67

-86

211

HR20-019

HOOD RIVER PROJECT

NFN

67

-73

164

HR20-020

HOOD RIVER PROJECT

NFN

67

-55

154

HR20-021

HOOD RIVER PROJECT

NFN

67

-76

148

HR20-022

HOOD RIVER PROJECT

NFN

67

-88

163

HR20-023

HOOD RIVER PROJECT

NFN

67

-85

109

HR20-024

HOOD RIVER PROJECT

NFN

40

-60

120.5

HR20-025

HOOD RIVER PROJECT

NFN

246

-70

101

HR20-026

HOOD RIVER PROJECT

NFN

245

-48

133

HR20-027

HOOD RIVER PROJECT

INT

356

-45

100

HR20-028

HOOD RIVER PROJECT

INT

356

-70

145

HR20-029

HOOD RIVER PROJECT

BIZEN

90

-45

314

HR20-030

HOOD RIVER PROJECT

APEX

290

-45

300.7

HR20-031

HOOD RIVER PROJECT

APEX

180

-45

161

HR20-032

HOOD RIVER PROJECT

APEX

180

-75

111.5

HR20-033

HOOD RIVER PROJECT

CROWN

45

-45

149

HR20-034

HOOD RIVER PROJECT

CROWN

45

-85

89

HR20-035

HOOD RIVER PROJECT

CROWN

290

-55

152

HR20-036

HOOD RIVER PROJECT

SOUTH PENTHOUSE

15

-60

107

HR20-037

HOOD RIVER PROJECT

SOUTH PENTHOUSE

15

-87

46

HR20-038

HOOD RIVER PROJECT

SOUTH PENTHOUSE

1

-70

62

Total

3924.2 m

Figure 1. Ulu and Hood River Properties

To view an enhanced version of Figure 1, please visit:

https://orders.newsfilecorp.com/files/2421/72037_08903735541eb8a7_001full.jpg

QA/QC Program for the 2020 Exploration Work

:

All drill core was logged and sampled in secure core processing structures located at the Ulu or Hood

River camps.

Drill core samples were collected by either cutting the core in half using diamond saws or

by splitting the core in half using hydraulic core splitters. In addition to the QA/QC protocols of ALS

Global, the Company maintains its own program of inserting Standard Reference material in the form of

standards and blanks into the sampling stream, prior to being shipped to ALS's preparation facility in

Yellowknife.

History and Geology of the Ulu and Hood River Gold Properties:

The properties are located approximately 525 km NNE of Yellowknife, NT in the Kitikmeot region of

western Nunavut. Kugluktuk is approximately 210 km to the NW.

The Ulu property consists of a renewable 21-year mining lease and covers an area of approximately 947

ha. The lease hosts an advanced gold project that between 1989 and 2012 saw significant exploration

and development by BHP Minerals and Echo Bay Mines, among others. The past work includes

approximately 1.7 km of underground development and approximately 405 diamond drill holes that

produced 97,820 m of core (Ulu and Hood River). The Flood Zone contains the bulk of the Ulu gold

resource and is open on-strike and at depth. Overall resources of 2.50 million tonnes grading 7.53 g/t Au

for 605,000 gold ounces (measured & indicated category) and 1.26 million tonnes grading 5.57 g/t Au

for 226,000 gold ounces (inferred category) have been estimated for the Flood and Gnu Zones (refer to

"Technical Report on the Ulu Gold Property, Nunavut, Canada" dated July 10, 2015). The deepest

intersection of mineable width at the Flood Zone is 14.9 g/t Au over 7.7 m in BHP's drill hole 90VD-75 at

610 m below surface. Metallurgical testing on the Flood Zone gold mineralization has shown that gold is

recoverable in amounts greater than 90% by gravity, flotation and cyanidation.

The Hood River property is contiguous to the Ulu lease to the north, east and south. The property is held

through a renewable, 20-year Mineral Exploration Agreement with Nunavut Tunngavik Incorporated. The

highly prospective property encompasses 8,015 ha. At least 22 known gold showings have been

identified on the property. The exploration target for the property is shear-hosted gold mineralization

similar to the Flood Zone on the adjacent Ulu lease.

A series of gold occurrences occur on-strike and north of the Flood Zone and are thought to be related to

the ~5 km long Ulu regional fold that extends from the Ulu lease onto the north Hood River property

culminating at the NFN Zone. This structure extends from the Flood and Gnu Zones along the Ulu fold to

the north and hosts at least five gold zones in addition to the Flood and Gnu Zones (NFN, INT, Bizen,

Apex and Contact Zones).

Gossanous auriferous rocks hosted within mafic volcanic units at or close to the contact with meta-

greywacke rocks occur along the Ulu fold trend. The gold mineralization is commonly enveloped by an

alteration halo of biotite-actinolite-quartz. The mineralized zones are believed to be the result of brittle-

ductile failure caused by regional stresses during different deformation stages. Along sedimentary-

volcanic contacts, regional folding causing shearing, due to lithological competency contrasts, resulted in

minor dilatancy. These dilatational zones were in-filled with the gold-arsenic-rich hydrothermal fluids.

Mineralization shows pinch and swell style.

Several high-grade gold occurrences also occur on the east Hood River property, including the Crown

and Penthouse Zones, where additional gold trends may exist. In addition, many unnamed gold

occurrences exist on the two properties, where further prospecting is required to advance the showings

to target zones. The large number of high-grade gold showings that occur throughout the properties

provide for excellent resource expansion potential at multiple targets.

Supplementing the high-grade gold resources, the Ulu project includes a substantial inventory of capital

equipment, a camp with shop and a 1,200 m long airstrip. The site of the future deep-water port at Grays

Bay is 100 km to the north of the properties, and the proposed route corridor for the all-weather Grays

Bay road passes in close proximity to the Ulu and Hood River projects.

Ulu Resource Estimate:

Classification

Gold

Tonnage

Gold Grade

Gold Contained

Cut-off

(g/t)

Tonnes

g/t

Oz

Flood Zone

Measured

> 4.0

1,000,000

8.48

272,000

Indicated

> 4.0

1,500,000

6.90

333,000