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Damara Gold Reports Results on its Placer Mountain Project.

Corporate Updates

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

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

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

NEWS RELEASE

Damara Gold Reports Results on its Placer Mountain Project.

October 4, 2021 TSX-V: DMR

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

positive results from its geochemical sampling program conducted on it’s Placer Mountain

Project (“Placer Mountain” or the “Property”) located south of Princeton, British Columbia.

Exploration crews collected a total of 76 stream sediment samples, 2,635 B-horizon soil

samples on a 25m x 100m spaced grid over unexplored portions of the Property and 279 Soil

Gas Hydrocarbon (SGH) samples over and along strike of the Main Vein. Maps illustrating the

B horizon soil sample, SGH sample and stream sediment sample results can be found at the

following link:

https://www.damaragoldcorp.com/2021_exploration_results.html

B-Horizon Soil Sample Results

Three new major geochemical anomalies have been identified by the B-horizon soil survey.

The strongest gold anomaly lies approximately 2 kilometers north of the Main Vein and has

several historic rock float grab samples overlapping its southwest edge, with historic values

including 25 and 29 g/t gold. No historic rock samples have been collected from within the

anomaly itself which remains open to the northeast. This new anomaly is larger and more

robust than the historic gold-in-soil anomaly over the Main Vein, where previous soil samples

were collected on a tighter 25m x 25m spaced grid . A second phase of infi ll and extension

sampling is planned to commence immediately.

A second soil anomaly occurs to the northwest and trends under post -mineral cover to the

north. Th is second anomaly has weaker gold values but displays robust pathfinder

concentrations of silver, molybdenum, zinc, mercury, selenium, tellurium, arsenic and

antimony.

On the west side of the property , a separate B horizon soil survey grid, targeting porphyry

copper mineralization was sampled. Several clusters of anomalous copper as well as a single

zoned anomalous molybdenum values and other important pathfinders occur on the western

grid, which suggest the presence of a separate mineralized system. Geological mapping will

be carried out over the anomalous area during the next phase of work to determine if drill

testing is warranted.

The copper-molybdenum soil anomaly occurs along the projected southern extension of the

Summers Creek Fault Zone, a north-south belt of alkalic copper-gold porphyry showings which

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

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

trends northwards to Copper Mountain and beyond through to Kodiak Copper ’s recent MPD

discovery. The soil anomaly is coincident with a magnetic high, suggesting the presence of a

magnetite-bearing intrusive.

Soil Gas Hydrocarbon Sample Results

Due to the presence of post -mineral volcanic cover across the Property and surrounding the

Main Vein, a soil gas hydrocarbon (“SGH”) survey was completed over the Main Vein and

along strike on a 25m x 100m spaced grid. SGH survey s are able to detect the potential

presence of buried gold mineralization up to 100’s of meters below surface, by analyzing for

the gaseous bacterial decomposition products of minerals which are associated with gold

deposits. Bacterial decomposition of specific minerals can give off a gaseous product which

can rise through 100’s of meters of rock and overburden and plate unique hydrocarbon

signatures onto the particles at surface, which can then be determined by careful laboratory

analysis. The SGH signature of gold decomposition products in samples collected at Placer

Mountain was analyzed and is presented quantitively on the SGH gold map. The gold signature

shows a 400m x 150m anomaly, parallel but offset to the north of the Main Vein . The SGH

gold anomaly may represent a parallel vein and will be tested in the 2021 drill program.

2021 Drill Program Planning

Subject to the upcoming follow-up geological and geochemical program, the upcoming 2021

drill program, will test at least 4 separate target areas, including extensions of the Main Vein,

the parallel SGH gold anomaly, and the two soil anomalies on the eastern B-horizon soil grid.

The next phase of work, designed to delineate drill targets will commence immediately and

includes infill and extension soil sampling as well as detailed prospecting of the new

anomalies. Once results are received, the Company plans to commence a 2021 drill program

by late November. Excellent logging road access, with plows and water truck support from a

local logging company, and an indoor core logging and cutting facility in Princeton , allow

drilling to take place essentially year-round at Placer Mountain.

Larry Nagy, CEO, commented “Our field crews have done an excellent job collecting samples

during one of the hottest summers we have ever experienced. Results are finally arriving and

are very encouraging. I am looking forward to drill testing these targets very soon.”

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

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

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

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 Company’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

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 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 pub lic disclosure documents filed on the SEDAR website at

www.sedar.com.

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

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

UNDERTAKE TO UPDATE THIS INFO RMATION 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.