JG.V · 2018-02-05 12:00:00

Japan Gold Intersects High Gold Grades in its First Drill Program in Japan

Exploration Programs

TSX-V: JG

OTCQB: JGLDF

Japan Gold Corp.

Suite 650 – 669 Howe Street, Vancouver, BC V6C 0B4 Canada

Phone: +1 778-725-1491

www.japangold.com

NEWS RELEASE

Japan Gold Intersects High Gold Grades in its First Drill Program in Japan

February 05, 201 8 – Vancouver, BC – Japan Gold Corp. (TSX -V: JG) (OTCQB: JGLDF)

(“Japan Gold” or the “Company”) is pleased to report results from its first scout drill holes completed

in late December 2017 on the Akebono prospect at its Ikutahara Project in Hokkaido, Northern Japan.

The following intersections downhole were returned from the targeted epithermal quartz vein:

IKDD003: 0.45 m (true width 0.37 m) @ 29.7 g/t Au and 77g/t Ag from 39.1 m

and IKDD001: 0.4 m (true width 0.39 m) @ 4.6 g/t Au and 107g/t Ag from 17.25 m

These results support the presence of high grade gold shoots in the Akebono vein system previously

indicated by historic sampling of underground workings ( refer to Japan Gold’s news release dated

February 2017: http://japangold.com/completes-2016-field-program/).

Obtaining these results represents significant milestones for the Company, firstly supporting high gold

and silver grades at the Akebono prospect and secondly proving that Japan Gold can successfully work

through the Japanese regulatory and permitting system from licence application acceptance to granting

of prospecting rights and gaining approval for its first drill program.

The Akebono prospect is located in the northeast corner of the Company’s Ikutahara Project within one

of 23 prospecting rights blocks granted by the Japanese Ministry of Economy, Trade and Industry

(“METI”). A further 15 of the 56 Ikutahara licenses are currently under process by METI and the

company expects that these will be granted in 2018 to allow drilling on other key prospects.

Surface mapping conducted by the Company during 2016 and 2017 identified a northeast trending vein

system with widths up to four metres and an open-ended strike length of over 770 metres based on the

alignment of workings, sporadic vein outcrops, subcrops and vein float, refer to Figure 1.

The scout program at Akebono planned up to six drill holes totalling 1,000 m. Drilling commenced in

late November, however abnormally severe winter con ditions in Hokkaido at the end of December

meant the program was suspended after 3 drill holes totalling 333.6 m. It is expected the program will

be completed following the spring thaw.

These first holes were positioned to confirm historic high-grade underground sampling. Drill hole collar

locations are summarized in Table 1.

Table 1. IKUTAHARA PROJECT – Akebono Prospect

Drill-hole Details

Hole ID mE

(UTM)

Mrl Dip

(collar)

Azimuth

(mag.)

Depth

(m)

IKDD001

IKDD002

IKDD003

709,550

709,570

709,569

4,870,057

4,870,046

343

337

-500

-650

-750

2990

2810

197.5

71.8

64.3

Table 2. IKUTAHARA PROJECT – Akebono Prospect

Significantly Mineralized Drill Intercepts

Hole ID From

(m)

Length

(m)

True

Width

(m)

(g/t)

Lithology Core

Recovery

IKDD001 16.95 17.25 0.30 0.29 0.13 17 QVN 100%

17.25 17.65 0.40 0.39 4.60 107 QVN/STK 100%

including

17.25 17.55 0.30 0.29 6.08 43.6 QVN 100%

17.55 17.65 0.10 0.10 0.22 296 STK 100%

17.65

17.95

18.10

0.30

0.15

0.29

0.14

0.56

0.32

8.8

31.3

QVN

STK

100%

IKDD002 Redrilled as hole IKDD003 due to poor core recovery in vein zone

IKDD003 38.80 39.10 0.30 0.25 NS NS NC 0%

39.10 39.55 0.45 0.37 29.70 77 QVN 91%

39.55 40.00 0.45 0.37 0.38 6 QVN 89%

Notes: QVN – quartz vein, STK – stockwork, NS – no sample, NC – no core recovered

Drill hole IKDD001 (azimuth 29 9o, dip -50o) targeted the upper portion of the Akebono vein

approximately 25 m below surface. Ending at a depth of 197.5 m. This drill hole cut Mesozoic basement

metasediments along its length. The main Akebono vein zone was intersected between 16.95 m and

18.1 m downhole and comprised partly oxidized quartz stockworks and bladed epithermal quartz veins

up to 0.5 m wide. The best mineralised interval gave 0.4 m @ 4.6 g/t Au and 107 g/t Ag from 17.25 m,

refer to long section and cross section Figures 2 and 3.

Drill hole IKDD002 (azimuth 281o, dip -65o) planned to test 25 m below IKDD001. An inferred 1.5 m

wide quartz vein zone was intersected from 36.5 m depth however due to bad ground conditions

unacceptably poor core recovery was obtained and this hole was abandoned and redrilled on a slightly

steeper dip as IKDD003.

Drill hole IKDD003 intersected a 0.9 m wide vein from 39.1 m to 40.0 m of partly oxidized banded and

bladed epithermal quartz with dark sulphide rich banding. The best mineralised interval from this zone

returned 0.45 m @ 29.7 g/t Au and 77g/t Ag from 39.1 m. No core was recovered from the 30 cm

interval preceding this vein intersection.

On completion of these three drill holes the program was suspended due to abnormal extreme winter

conditions and it was decided to postpone further drilling at Akebono until to spring 2018.

John Proust , Chairman and CEO and of Japan Gold , stated, “The Akebono pr ogram has been a

successful testing ground for the Company’s operations in Japan, having worked through first -mover

challenges of permitti ng, administration, and advancing the field activities to drilling. Experience s

learned here are helping to fast track permitting of future programs. The Akebono target was the first

prospect selected for drill testing as it was the first fully permitted and easily accessibl e. Additional

drilling here is being planned for spring 2018. The Company is aggressively pursuing permitting for

drilling at other higher priority prospects throughout the Ikutahara project for drilling in 2018.”

Sampling Techniques and Assaying

The results discussed in this news release are from drill core samples obtained by PQ and HQ -size

triple-tube diamond core drilling using two PMC400 man -portable drill rigs owned by SAMJ and

operated by Sumiko Resources Exploration & Development Co., Ltd. (a wholly owned exploration

services subsidiary of Sumitomo Metal Mining Co., Ltd.) The drilling program was fully supervised by

SAMJ senior project geologists at the drilling site.

Drill core was collected in wooden core -trays at the drill site and transported by road in company

vehicles to its core shed storage facility in Ikutahara Township, located next to the project area. The

drill core was carefully logged, photographed and sample intervals marked -up along predicted

mineralized and selected unmineralized intervals by SAMJ senior project geologists.

Sample lengths varied from 0.1 to 1.5 m ; depending on the positions of mineralized/unminer alized

contacts and any variations in vein texture and composition. The core was split in -half with a petrol-

driven diamond-blade saw by the senior project geologists. Half -core sample was collected from t he

entire length of each designated sample interval and placed into individual-labelled, self-sealing calico

bags for secure packaging and transport to the laboratory. The half -core samples weighed between 1

to 8 kg depending on the sample length and core size. A Chain-of-Custody was established between the

Company and receiving laboratory to ensure the integrity of the samples during transportation from

site to the lab. The samples were sent in two separate batches to ALS Chemex (Vancouver) and ALS

Chemex (Guangzhou) for sample preparation and assaying.

Samples were crushed, completely pulverised and assayed for gold 50 g charge Fire Assay/ AAS Finish

(Au-AA26; 0.01 ppm detection limit) and silver by multi-acid digest and either AAS determination (Ag-

AA61; 0.5 ppm detection limit) or ICP-AES determination (Ag-OG62; 1 ppm detection limit).

Certified Reference Materials (CRMs) were inserted by SAMJ at every 10th sample to assess

repeatability and assaying precision of the laboratory. In addition, the laboratory applied its own

internal Quality Control procedure that includes sample duplicates, blanks & geochemical standards.

They report these results with the certified Assay Report. Laboratory procedures and QAQC protocols

adopted are considered approp riate. The CRMs and internal QC -QA results fall within acceptable

levels of accuracy & precision and are considered to lack any bias. No external assay checks at an

alternative laboratory have been done to date.

Qualified Person

The scientific and technical disclosure in this news release has been reviewed and approved by Japan

Gold’s President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, who is a Qualified

Person as defined by National Instrument 43-101.

On behalf of the Board of Japan Gold Corp.

“John Proust”

Chairman & CEO

About Japan Gold Corp.

Japan Gold Corp. is a Canadian mineral exploration company focused solely on gold and copper -gold

exploration in Japan. The Company has applied for 210 prospecting rights licenses in Japan for a

combined area of 69,505 hectares over 17 separate projects. Thirty-two of the applications have already

been granted as Prospecting Rights. The applications cover areas with known gold occurrences and a

history of mining. Thirteen of the 17 projects are pros pective for high -grade epithermal gold

mineralization. Four of the 17 projects were selected because of the identification of gold -bearing

lithocaps, which could indicate the presence of buried porphyry copper -gold mineralization. Japan

Gold’s leadership team has decades of resource industry and business experience, and the Company has

recruited geologists and technical advisors with experience exploring and operating in Japan. More

information is available at www.japangold.com or by email at [email protected].

Japan Gold Contact

John Proust

Chairman & CEO

Phone: 778-725-1491

Email: [email protected]

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

This news release contains forward looking statements relating to expected or anticipated future events

and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks

and uncertainties, such as general economic, market and business conditions, competition for qualified

staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from

potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction,

uncertainties regarding the results of explorat ion, uncertainties regarding the timing and granting of

prospecting rights, uncertainties regarding the Company’s ability to execute and implement future

plans, and the occurrence of unexpected events. Actual results achieved may vary from the information

provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

Figure 1: Akebono Geology Map with Vein Interpretation, Drill Hole Trace and Mineralised Intervals

Figure 2: Akebono Long Section with Historic Workings and Sampling Results with 2017 Drill Hole

Pierce Points and Mineralised Intervals

Figure 3: Akebono Cross Section through Drill Holes IKDD001, 002 and 003 with Mineralised Intervals

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