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Damara Gold Announces Acquisition of a 100% Interest in the VanLab Vanadium Property,

Mergers & Acquisitions Property Options & Staking

335 – 1632 Dickson Avenue • Kelowna, BC V1Y 7T2

Phone: (250) 717-1840 • www.damaragoldcorp.com

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Damara Gold Announces Acquisition of a 100% Interest in the VanLab Vanadium Property,

Labrador Trough Region, Quebec

December ●, 2022 TSX-V: DMR

DAMARA GOLD CORP. (TSX -V:DMR) (“Damara” or the “Company”) is pleased to announce that it has

entered into purchase agreement (the "Purchase Agreement") to acquire a 100% undivided interest in 203

map designated mineral exploration claims covering approximately 9,675 hectares located in the Labrador

Trough region of Quebec, (collectively the "VanLab Property"). The Purchase Agreement, dated December

21, 2022, was completed with two arm's length sellers (the "Sellers")

The VanLab Property

The Purchase Agreement

Subject to TSX Exchange (the “Exchange”) approval, Damara will acquire the Sellers’ 100% interest in and

to the VanLab Property in exchange for the following consideration (the “ Consideration”):

(a) the issuance by the Damara to the Sellers on within 5 business days of Exchange approval

(the “Closing Date”) an aggregate of 4,000,000 units (each a “ Unit”). Each Unit shall be

comprised of one common share (a “ Consideration Share”) in the capital of Damara and

one non -transferable share purchase warrant (each a “ Warrant”). Each Warrant shall

entitle the Sellers to acquire one additional common share in the capital of Damara (the

“Warrant Shares ” and together with the Consideration Shares and Warrants, the

“Consideration Securities ”) at an exercise price of $0.25 for a period of thirty six (36)

months from Closing; and

(b) the Damara will grant to the Seller of a 2% net smelter return royalty (the “ NSR Royalty”

on Closing.

Pursuant to the terms of the Purchase Agreement the Sellers may be entitled to a 0.5% net smelter return

royalty in any interest Damara acquires in additional claims within an area of interest of the VanLab Property.

The Consideration Securities will be subject to a statutory four month and one day hold period under

applicable securities laws from the Closing Date.

Qualified Person

Yvan Bussières, P. Eng, (Quebec) technical advisor to the Company, is the Qualified Person as defined by

National Instrument 43-101 who has reviewed and approved the technical data in this report.

About Damara

Damara Gold Corp. is a TSX Venture listed Canadian public company with a Boa rd of Directors seasoned

in the mineral exploration industry with extensive and successful international experience with a focus on

identifying and acquiring prospective and under-explored gold properties worldwide.

335 – 1632 Dickson Avenue • Kelowna, BC V1Y 7T2

Phone: (250) 717-1840 • www.damaragoldcorp.com

ON BEHALF OF THE BOARD OF DIRECTORS OF DAMARA

“Larry Nagy”

Larry Nagy, Chief Executive Officer

For additional information visit Damara’s website at www.damaragoldcorp.com or contact:

Damara Gold Corp.

Larry Nagy

Chief Executive Officer

Ph: (250-241-5692)

Disclaimer for Forward-Looking Information

This news release contains statements that constitute "forward-looking Information", as such term is used in applicable

Canadian securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other

factors that may cause the Company’s actual results, performance or achievements, or deve lopments in the industry

to differ materially from the anticipated results, performance or achievements expressed or implied by such forward -

looking information. Forward-looking information includes statements that are not historical facts and are generally, but

not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects,"

"potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Although the Company believes the forward-looking information contained in this news release is reasonable based on

information available on the date hereof, by its nature forward-looking information involves assumptions and known and

unknown risks, uncert ainties and other factors which may cause our actual results, level of activity, performance or

achievements, or other future events, to be materially different from any future results, performance or achievements

expressed or implied by such forward-looking information.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties

associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required

regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the

communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining

sector; the Company ’s ability to access sufficient capital from internal and external sources, and/or inability to access

sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company

to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable,

which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology,

grade and continuity of mineral deposits, the possibil ity that results will not be consistent with the Company’s

expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development

activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR

website at www.sedar.com.

THE FORWARD -LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE

EXPECTATIONS OF DAMARA AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT

TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD -

LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE

DAMARA MAY ELECT TO, IT DOES NOT UNDE RTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR

TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.