GFG.V · 2023-01-18 12:00:00

GFG Drills Significant Gold Mineralization in Multiple Zones at Montclerg including 9.85 g/t Gold over 16.0 Metres

Drill Results

Media Release

TSX.V: GFG | OTCQB: GFGSF

GFG Drills Significant Gold Mineralization in Multiple Zones at

Montclerg including 9.85 g/t Gold over 16.0 Metres

KEY HIGHLIGHTS:

• Drill results from the Montclerg Gold Project (“Montclerg”) continue to intersect high-grade and bulk

tonnage gold intercepts demonstrating continuity and a robust gold system.

• Hole MTC-22-035 returned multiple gold zones:

o 9.85 grams of gold per tonne (“g/t Au”) over 16.0 metres (“m”) in the Upper Footwall zone,

30 m from hole MTC-21-005 that graded 4.82 g/t Au over 26.0 m.

• MTC-22-034 intercepted multiple zones above 170 m depth with highlights of 1.34 g/t Au over 15.1 m

and 5.26 g/t Au over 9.3 m.

• Assay results from the remaining 13 holes are pending and will be announced as they are received.

• Achieved nearly 90% drilling hit rate since acquiring the Montclerg Gold Project in late 2021.

• Drilling is planned to resum e in February with a focus on Montclerg and testing high -priority gold

targets across the Goldarm Property.

January 18, 2023, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG ) (OTCQB:

GFGSF) (“GFG” or the “ Company”) announces new high-grade gold assay results from its recently completed

17-hole 2022 Phase 2 drill program at the Montclerg Gold Project, located 40 kilometres (“km”) east of Timmins,

Ontario. (see Table 1 and Figures 1-4). The results released today are from four drill holes in the MC Central target

where GFG has continuously proven and grown a robust gold system since the Company acquired Montclerg in

October 2021.

During the Phase 2 drill program, the Company completed a total of 17 holes (3, 541 m) on the Goldarm Property

located east of Timmins, Ontario. The Phase 2 drill program was designed to complete infill drilling to advance

Montclerg towards resource, step-out holes to grow the Montclerg gold system and to begin testing high- priority

gold targets within the Goldarm Property such as the Aljo Gold Mine target (“Aljo”). Of the 17 holes completed,

14 holes were completed at Montclerg and three holes at Aljo. In addition to the great results today, the Company

is optimistic that the remaining holes will return strong results as significant mineralized zones were observed.

“With each hole and drill program since consolidating Goldarm, we are strengthening our understanding of local

and regional ore controls and growing the footprint of the system,” stated Brian Skanderbeg, President and CEO of

GFG. “The results today include our best drill intercept to date at Montclerg and we are pleased to continue to hit

multiple zones of gold mineralization with strong continuity at both shallow and deeper levels.”

Skanderbeg added, “The presence of multi-million-ounce gold systems on all sides of our Goldarm Property and

the success we have had at Montclerg clearly demonstrate that the Timmins East region is becoming a ne w gold

camp. Despite a long history of mining and exploration in the district, there remains much to be discovered. We are

excited to receive the remaining assay results as the m ajority of the holes host significant mineralization and

alteration over broad intervals.”

Table 1: Initial Assay Results from the 2022 Phase 2 Drill Program at the Montclerg Gold Project

Hole ID From (m) To (m) Length (m) Au (g/t) Zone

MTC-22-031 194.0 202.6 8.6 0.68 Upper Main

and 285.2 292.6 7.4 2.78 Lower Footwall

incl. 290.3 292.6 2.3 7.83

and 300.4 302.0 1.6 4.59 Lower Footwall

and 319.5 320.5 1.0 4.80 Undefined

and 332.8 333.3 0.5 5.27 Undefined

MTC-22-032 No Significant Intercept

MTC-22-033 Assays Pending

MTC-22-034 46.4 52.5 6.1 0.94 Upper Main

and 79.5 94.6 15.1 1.34 Lower Main

incl. 85.2 86.8 1.6 3.97

and 161.7 171.0 9.3 5.26 Upper Footwall

incl 163.9 169.3 5.4 8.96

MTC-22-035 31.3 38.8 7.5 0.79 Upper Main

and 72.0 85.2 13.2 2.31 Lower Main

incl. 77.0 82.1 5.1 4.07

and 125.3 141.3 16.0 9.85 Upper Footwall

incl. 130.3 137.8 7.5 14.99

*Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades

less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off. True width is estimated to be 50 to 90% of drilled length.

Commentary on Assay Results

Drill Hole MTC-22-031 was drilled to test the Lower Footwall Zone’s western and depth continuity. Pervasive

carbonate alteration and moderate to high strain within the mafic volcanics marks mineralization. Gold

mineralization is associated with trace to 20% pyrite and trace to 10% arsenopyrite disseminations with moderate

quartz veining of the host rock. This zone returned 2.78 g/t Au over 7.4 m and includes 7.83 g/t Au over 2.3 m .

The hole confirmed western strike continuity of Lower Footwall mineralization as well as continuity of the Upper

Main Zone to the west of MTC-22-001.

Drill Hole MTC-22-034 was designed to test the Upper and Lower Main Zones 30 m below MTC-22-023. The

hole demonstrated depth continuity with strong to moderate silica, and patchy to pervasive sericite alteration of the

felsic volcanics. Mineralization is associated with trace to 5% quartz veining, trace to 5% disseminated arsenopyrite

and trace to 1% pyrite in the wall rocks. The zone returned 1.34 g/t Au over 15.1 m.

The Upper Footwall Zone was intercepted further downhole and comprises strong carbonate and weak silica

alteration of mafic volcanics. It exhibits moderate brecciation and shearing and trace to 30% quartz veining .

Disseminated pyrite, 5 to 20%, and lesser arsenopyrite, trace to 10%, occur in the wall rocks. The zone returned

8.96 g/t Au over 5.4 m confirming the extension of the Upper Footwall Zone at depth.

Drill hole MTC-22-035 was drilled 30 m down-dip of hole MTC-22-005 to test the depth continuity of the Lower

Footwall Zone that returned 4.82 g/t Au over 26.0 m (see news release dated February 10, 2022). The Upper Main

Zone mineralization comprises patchy to strong silica and minor sericite alteration of felsic volcanics with irregular

quartz veining. Disseminated pyrite, trace to 1% and arsenopyrite, trace to 5%, occur throughout the wall rock. The

Main Zone mineralization returned 2.31 g/t Au over 13.2 m, including 4.07 g/t Au over 5.1 m.

Further downhole, mineralization of the Lower Footwall Zone comprises strong to pervasive carbonate alteration

and patchy sericite altered mafic volcanics. There is localized blocky texture and fracturing with quartz veining

ranging from 0.5 to 20%. Disseminated pyrite , 2 to 30%, and lesser arsenopyrite, trace to 5%, occur in the wall

rocks. This zone returned 9.85 g/t Au over 16.0 m including 14.99 g/t Au over 7.5 m. This confirms that the Lower

Footwall Zone identified in hole MTC-22-005 continues to extend to depth, with significant widths interpreted to

reflect the intersection between moderately north-dipping Upper Footwall Zone mineralization and sub-horizontal

mineralization associated with the Lower Main Zone.

Attend the Live Webinar – Thursday, January 19, 2023

We invite you to pleas e join GFG on Thursday, January 19, 2023, at 12:00 PM Eastern Time for an in -depth

discussion and presentation on the results from today and the outlook for 2023.

You may register by clicking HERE

Figure 1: Regional Map of GFG Gold Projects in the Timmins Gold District

Figure 2: Goldarm Property Plan View Map

Figure 3: Montclerg Gold Project Plan View Map

Figure 4: Montclerg Gold Project Cross Section Map

Table 2: GFG Drill Hole Assay Highlights from the Montclerg Gold Project

Hole ID From (m) To (m) Length (m) Au (g/t) Zone

MTC-21-001 62.5 90.0 27.5 1.56 Upper Main

incl. 63.5 66.0 2.5 8.42

incl. 65.4 66.0 0.6 26.90

incl. 71.5 74.0 2.5 4.30

and 126.0 166.5 40.5 0.78 Lower Main

incl. 130.8 138.0 7.3 2.20

MTC-21-004 39.8 64.0 24.2 0.73 Upper Main

and 75.7 86.1 10.4 1.24 Lower Main

incl. 81.0 85.1 4.1 2.37

and 230.5 246.0 15.5 1.23 Lower Footwall

incl. 241.7 245.0 3.3 3.09

MTC-21-005 86.0 112.0 26.0 4.82 Upper Footwall

incl. 94.3 96.1 1.8 15.96

and 103.8 109.3 5.5 12.32

and 118.9 120.6 1.7 11.29

MTC-21-006 98.3 105.8 7.5 8.34 Upper Footwall

incl. 98.3 101.0 2.7 15.04

MTC-21-007 65.4 95.6 31.1 1.40 Upper Main

and 108.0 131.0 23.0 1.11 Lower Main

MTC-21-009 45.0 60.0 15.0 1.23 Upper Main

MTC-21-010 79.5 106.5 27.0 1.05 Upper Main

incl. 89.6 100.5 10.9 1.84

MTC-22-015 24.0 57.5 33.5 1.32 MC West

incl. 24.0 28.7 4.7 5.15

MTC-22-018 52.0 57.9 5.9 3.51 MC West

incl. 53.9 56.0 2.1 7.93

MTC-22-019 112.6 118.1 5.5 4.38 Upper Footwall

incl. 112.6 116.0 3.4 6.37

MTC-22-020 22.4 34.1 11.7 1.07 Upper Main

incl. 24.6 25.6 1.0 2.01

incl. 28.0 28.8 0.8 2.43

incl. 32.0 33.0 1.0 2.16

and 97.0 105.3 8.3 4.95 Upper Footwall

incl. 102.8 105.3 2.5 12.83

MTC-22-021 50.3 72.0 21.7 1.51 Upper Main

incl. 62.2 64.0 1.8 8.17

MTC-22-023 17.6 88.0 70.4 1.60 Upper Main

incl. 35.2 42.0 6.8 2.43

incl. 76.2 81.0 4.8 4.97

and 124.5 133.2 8.7 2.46 Upper Footwall

incl. 131.4 133.2 1.8 7.75

MTC-22-029 104.4 111.5 7.1 4.98 Upper Footwall

incl. 104.4 107.6 3.2 7.02

incl. 110.4 111.5 1.1 7.79

MTC-22-030 71.0 86.0 15.0 3.40 Upper Footwall

incl. 71.0 74.0 3.0 6.21

incl. 81.9 82.9 1.0 17.50

MTC-22-031 194.0 202.6 8.6 0.68 Upper Main

and 285.2 292.6 7.4 2.78 Lower Footwall

incl. 290.3 292.6 2.3 7.83

and 300.4 302.0 1.6 4.59 Lower Footwall

and 319.5 320.5 1.0 4.80 Undefined

and 332.8 333.3 0.5 5.27 Undefined

MTC-22-034 46.4 52.5 6.1 0.94 Upper Main

and 79.5 94.6 15.1 1.34 Lower Main

incl. 85.2 86.8 1.6 3.97

and 161.7 171.0 9.3 5.26 Upper Footwall

incl 163.9 168.3 5.4 8.96

MTC-22-035 31.2 38.8 7.5 0.79 Upper Main

and 72.0 85.2 13.2 2.31 Lower Main

incl. 77.0 82.1 5.1 4.07

and 125.3 141.3 16.0 9.85 Upper Footwall

incl. 130.3 137.8 7.5 14.99

*Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals

are calculated using a 3 g/t cut-off. True width is estimated to be 50 to 90% of drilled length.

About the Goldarm Property

The Goldarm Property is a large and highly prospective land package east of the Timmins Gold Camp (see Figures

1-2). The consolidated Goldarm Property covers approximately 30 kilometres (“km”) of the Pipestone Deformation

Zone and the North Pipestone Deformation Zone. Within the Goldarm Property, there are several highly prospective

gold targets such as the Aljo Gold Mine region, the Carr target and the Montclerg Gold Project which is the most

advanced target. The Montclerg Gold Project covers 10 km of the highly prospective Pipestone Deformation Zone

and is located 48 km east of the prolific Timmins Gold Camp and is adjacent to multiple current and historic gold

mines (see Figure 1).

About GFG Resources Inc.

GFG is a North American precious metals exploration compan y focused on district scale gold projects in tier one

mining jurisdictions, Ontario and Wyoming. In Ontario, the Company operates three gold projects, each large and

highly prospective gold properties within the prolific gold district of Timmins, Ontario, Canada. The projects have

similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have

produced over 70 million ounces of gold. The Company also owns 100% of the Rattlesnake Hills Gold Project, a

district scale gold exploration project located approximately 100 k m southwest of Casper, Wyoming, U.S. In

Wyoming, the Company has partnered with Group 11 Technologies Inc. through an option and earn-in agreement

to advance the Company’s Rattlesnake Hills Gold Project with a technology that could revolutionize the gold

mining industry.

For further information, please contact:

Brian Skanderbeg, President & CEO

Marc Lepage, Vice President, Business Development

Phone: (306) 931-0930

Email: [email protected]

Website: www.gfgresources.com

Stay Connected with Us

Twitter: @GFGResources

LinkedIn: https://www.linkedin.com/company/gfgresources/

Facebook: https://www.facebook.com/GFGResourcesInc/

Sampling and Quality Control

All scientific and technical information contained in this press release has been prepared under the supervision of

Brian Skanderbeg, P.Geo. President and CEO of GFG, a qualified person within the meaning of National Instrument

43-101.

Drill core samples are being analyzed for gold by Activation Laboratories Ltd. in Timmins, Ontario. Gold analysis

consists of the preparation of a 500- gram pulp and an assay of a 50 -gram aliquot by Pb collection fire assay with

an Atomic Absorption Spectrometry finish (Package 1A2-50. Samples assaying above 5 ppm Au are routinely re -

run using a gravimetric finish (Package 1A3-50). Mineralized zones containing visible gold are analyzed by a screen

metallic fire assay method. Selected samples are also undergoing multi-element analysis for 59 other elements using

a four-acid digestion and an ICP -MS finish (Package MA250) by Bureau Veritas Commodities Canada Ltd. in

Vancouver, British Columbia. Quality control and assurance measures include the monitoring of results for inserted

certified reference materials, coarse blanks and preparation duplicates of drill core.

Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution

of up to 3 m at grades less than 0.2 g/t Au. True width is estimated to be 50 to 90% of drilled length. Sampling

protocols, quality control and assurance measures and geochemical results related to historic drill core samples

quoted in this news release have not been verified by the Qua lified Person and therefore must be regarded as

estimates.

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 Company’s future exploration plans with respect

to its property interests and the timing thereof, the prospective nature of the projects, future price of gold, success of exploration activities and metallurgical

test work, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regula tion of exploration work,

environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Gene rally, 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 negative connotation thereo f 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 limita tion, 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 Company’s projects is not necessary indicative

of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project, the Goldarm Property, the Pen Gold Project and the Dore Gold

Project.

Forward-looking statements are subject to known and unknown risks, unc ertainties and other factors that may cause the actual results, level of activity,

performance or achievements of GFG to be materially different from those expressed 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 an d other risks of the

mining industry; availability of capital, 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 accurate, as actual results and future events could differ materially from t hose 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.

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