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Damara Gold Expands Soil Anomaly with up to 18.1 g/t Au and 52.1 g/t Ag in soil and Sees Potential Bulk Tonnage Style Mineralization at Kodiak Zone

Drill Results

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

NEWS RELEASE

Damara Gold Expands Soil Anomaly with up to 18.1 g/t Au and 52.1 g/t Ag in soil

and Sees Potential Bulk Tonnage Style Mineralization at Kodiak Zone

December 2, 2021 TSX-V: DMR

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

the Phase II soil sampling at the Kodiak Zone ha s expanded the size of the anomaly to 400

meters in width and 1.2 kilometers in length, with individual soil samples grading up to 18,067

ppb (18.067 g/t) gold and 52.1 g/t silver on its Placer Mountain Project south of Princeton,

BC (“Placer Mountain” or the “Property”). Preliminary trenches excavated within part of

the zone have intersected a swarm of parallel quartz -sulfide veining within mineralized and

altered granite, suggesting the potential for a bulk-tonnage style system at the Kodiak Zone.

Trench TR-03 returned 0.70 g/t gold across 44.5 meters at its southeastern half, and higher-

grade sub-intervals included a 20 cm quartz -sulfide vein grading 29.30 g/t gold and 78.40

g/t silver. The maiden trenches have tested 130 meters of the 400 meters width and 180

meters of the 1.2-kilometer length of the soil anomaly.

Kodiak Zone Soil Anomaly Greatly Expanded

The Phase II soil sa mpling consisted of 660 samples collected in October of this year, with

values ranging from below detection up to 18,067 ppb gold and 52.1 ppm silver. The east-

northeast trending anomaly is 400 meters in width across the slope , which has only been

partially tested by trenching. The length of the anomaly spans 1.2 kilometers with the western

end continuing up the opposing side of the valley . On its eastern end, t he anomaly trends

underneath post -mineral volcanic cover rocks . The logging road across the center of the

anomaly will be used to collar drill holes planned for the current program.

Orange iron oxide staining in logging road cuts within the Kodiak correlate s well with

anomalous gold -in-soil values. The Company is investigating the use of h igh-resolution

satellite imagery to identify further areas of elevated iron oxides within logging road cuts

across the Property, to aid in the planning of a 2022 soil sampling grid.

Trenching Results Indicate Potential for Both High -Grade and Bulk Tonnage Style

Mineralization within the Kodiak Zone

The maiden trenching program at the Kodiak Zone, consisting of 110 continuous chip samples

along a combined total of 322 meters in 4 separate trenches, was carried out across a flat

and easily accessible logging road located at the north end of the soil anomaly . The

southeastern half of Trench TR-03 ended in mineralization and returned 44.5 meters of 0.70

g/t gold and 1.53 g/t silver associated with a series of quartz -sulfide veins crosscutting iron

oxidized and altered granite , suggesting the potential for bulk tonnage style mineralization .

The zones of mineralization, alteration and veining within the granite are spatially associated

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

with small felsic intrusive dykes ranging in width from 3- 30 cm. Higher grade subintervals

within TR-03 include a 20 cm quartz sulfide vein grading 29.3 g/t gold and 78.4 g/t silver.

Trench TR-01 to the southwest intersected 8 meters of 2.56 g/t gold and 8.34 g/t silver

including 0.5 meters of 31.2 g/t gold and 99.4 g/t silver.

Trench TR-02, the furthest southwest, intersected 4 meters of 3.0 g/t gold and 9.7 g/t silver.

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

Table 1 – Select Results from Preliminary Trenching Program at the Kodiak Zone

Trench From (m) To (m) Length (m) Au (g/t) Ag (g/t)

TR-01 20 28 8 2.56 8.34

including 27.5 28 0.5 31.20 99.40

and 65.5 68.5 3 3.56 6.70

and 126 126.5 0.5 2.32 7.40

TR-02 12 28 16 0.42 1.53

including 12 13 1 3.80 12.20

and 58 62 4 3.00 9.70

TR-03 9 12 3 1.03 1.70

and 40.5 85 44.5 0.70 1.53

including 40.5 49 8.5 2.36 4.17

including 47.5 49 1.5 9.40 18.70

including 78.8 79 0.2 29.30 78.40

The intervals reported in these tables represent trench intercepts and insufficient data are

available at this time to state the true thickness of the mineralized intervals.

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

Drill Program Update

Drilling on Placer Mountain is progressing at a rapid pace, despite setbacks due to the recent

extreme weather conditions in Southern British Columbia. Some 1,169 meters of drilling have

been completed in 10 holes, covering approximately 400 meters of strike along the Main

Zone, a substantial increase to the strike length tested in 2020. The 2021 program has also

led to a greater understanding of the geology and controls to mineralization at the Main Zone.

Longer drill holes resulted in the intersection of additional veins within the zone as well. The

drill rig has now moved to the Kodiak Zone, having successfully completed all the planned

holes at the Main Zone.

There remains a backlog on cutting and sampling of the core due to the rapid pace of the

drilling as well as disruptions from flooding in the local town of Princeton, however the

Company remains on track to have all the core cut , sampled and in the lab by the holiday

break.

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

Larry Nagy, CEO, commented “We are very pleased with the progress we’ve made so far with

the program and the quality of the Full Force Drilling crew. Production has been good, and a

significant amount of strike has been covered along the veining system at the Main Zone. We

are excited to have th e drill now mobilized at the Kodiak Zone, which has shaped up as a

prime target area. The trenching and the phase II soil results are very encouraging and

demonstrate a more robust gold anomaly than that at the Main Zone. We are very optimistic

for the holes we have planned to test the zone’s 400-meter width.”

Qualified Person

Dr. Gerald G. Carlson, PhD, PEng, 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 Board 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.

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 or

Terese Gieselman

Chief Financial Officer

Ph: (250-717-1840)

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 C ompany’s actual results,

performance or achievements, or developments 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, uncertainties and other factors which may cause

our actual results, level of activity, performance or achievements, or other future events, to be materially

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

Phone: (250) 717-3151 • Fax: (250) 717-1845 • www.damaragoldcorp.com

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 develo pments 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 Co mpany 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 possibility 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 EL ECT TO, IT DOES NOT

UNDERTAKE 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.