GFG Announces Private Placement of up to C$2.0 Million in Flow-Through Financing

Media Release

Release: Immediate

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

GFG Announces Private Placement of up to C$2.0 Million in

Flow-Through Financing

December 7, 2018, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)

(OTCQB: GFGSF) (“GFG” or the “Company”) announces a non-brokered private placement to

raise gross proceeds of up to C$2.0 million (the “Offering”). The Offering will consist of the sale

of up to 5.2 million Tranche A flow-through common shares of the Company (the “A FT Shares”)

at a price of C$ 0.29 per A FT Share and of up to 2.0 million Tranche B flow -through common

shares of the Company (the “B FT Shares”) at a price of C$0.25 per B FT Share.

Brian Skanderbeg, President and CEO commented, “This financing allows us to fund and execute

our exploration programs during the first half of 2019. The program will include an aggressive first

quarter drill program testing some of our best targets at our Pen Gold Project west of the prolific

Timmins gold district in Ontario. We have made excellent progress with the 2018 exploration

program and look forward to sharing and building upon those results early in 2019.”

Gross proceeds raised under the Offering will be used for exploration activities in Ontario that will

qualify as “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)).

The Offering is scheduled to close on or about December 21 , 2018 and is subject to certain

conditions, including, but not limited to, the receipt of all necessary approvals, including the

approval of the TSX Venture Exchange. The Offering is being made by way of private placement

in Canada. The securities sold wil l not be offered or sold in the United States, and will each be

subject to a hold period expiring four months and one day from their issuance.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor

shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation

or sale would be unlawful prior to registration or qualification under the securities laws of

such jurisdiction. The securities have not been and will not be registered u nder the United

States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities

laws, and may not be offered or sold within the United States unless an exemption from such

registration is available.

About GFG Resources Inc.

GFG Resources is a North American precious metals exploration company focused on district scale

gold projects in tier one mining jurisdictions, Ontario and Wyoming. In Ontario, the Company

owns 100% of the Pen and Dore gold projects, two large and highly prospective gold properties

west of the prolific gold district of Timmins, Ontario, Canada. The Pen and the Dore gold projects

have the same geological setting that hosts most of the gold deposits found in the Timmins Gold

Camp which have produced over 70 million ounces of gold. In Wyoming, the Company controls

100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located

approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration

and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky

Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.

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Neither 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 release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements, other than statements of historical fact, contained in this news release constitute “forward-looking information” within

the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private

Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but

are not limited to, the future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency

exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental risks,

unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward -looking

statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”,

“budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the nega tive

connotation thereof or variations of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”,

“will”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.

All forward -looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of

management, the assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the

Company can access financing, appropriate equipment and sufficient labour, and that the political environment within Canada and the

United States will continue to support the development of mining projects in Canada and the United States. In addition, the similarity

or proximity of other gold deposits to the Rattlesnake Hill Gold Project, the Pen Gold Project and the Dore Gold Project is not necessary

indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project, the Pen Gold Proje ct and the

Dore Gold Project.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,

level of activity, performance or achievements of GFG to be materially different from those exp ressed or implied by such forward -

looking statements, including but not limited to: actual results of current exploration activities; environmental risks; future prices of

gold; operating risks; accidents, labour issues and other risks of the mining indus try; delays in obtaining government approvals or

financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.

Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in

forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be

no assurance that such statements will prove to be ac curate, as actual results and future events could differ materially from those

anticipated in such statements. In addition, forward -looking statements are provided solely for the purpose of providing information

about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating

environment. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this news release are made as of the date hereof and GFG assumes no obligation to update any forward-

looking statements, except as required by applicable laws.

For further information, please contact:

GFG Resources Inc.

Brian Skanderbeg, President & CEO

Phone: (306) 931-0930

or

Marc Lepage, Vice President, Business Development

Phone: (306) 931-0930

Email: [email protected]

Website: www.gfgresources.com