GFG Provides Update on Private Placement of Flow Through Financing

Media Release

Release: Immediate

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

GFG Provides Update on Private Placement of Flow Through

Financing

December 14, 2018, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)

(OTCQB: GFGSF) (“GFG” or the “Company”) provides an update on the previously announced

(see news release dated December 7, 2018 ) non-brokered private placement of flow -through

common shares of the Company (“FT Shares”). The Company anticipates closing the financing

consisting of the sale of approximately 5.5 million FT Shares at a price of C$0.29 per FT Share

(previously referred to as Tranche A FT Shares) for gross proceeds of approximately C$1,500,000

(the “Tranche A Offering”) on or about December 21, 2018. The Company will be conducting the

financing consisting of the sale of approximately 1.9 million FT Shares at C$0.25 per FT Share

(previously referred to as Tranche B FT Shares) for gross proceeds of approximately C$500,000

subsequent to the closing of the Tranche A Offering and anticipates closing it on or about December

27, 2018.

Gross proceeds raised under the Tranche A Offering will be used for exploration activities at the

Company’s Pen and Dore Gold Projects in Ontario that will qualify as “ Canadian Exploration

Expenses” (within the meaning of the Income Tax Act (Canada)).

The Tranche A Offering 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 Tranche A

Offering is being made by way of private placement in Canada. The securities sold will 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 under 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 defi ned 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 ris ks,

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”, “cou ld”, “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 a nd the

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

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 expressed or implied by such forw ard-

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 industry; delays in obtaining government approv als 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 cont ained 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 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 oper ating

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