Labrador GOLD Announces Initial Results from Kingsway Rab Drilling

NEWS RELEASE

December 17, 2020

LABRADOR GOLD ANNOUNCES INITIAL RESULTS FROM KINGSWAY RAB DRILLING

TORONTO, ON, December 17, 2020 – Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold”

or the “Company”) announces the first assay results from the RAB (Rotary Air Blast) drilling at its Kingsway

Project near Gander, Newfoundland. The Kingsway project is located within the highly prospective Gander Gold

District.

The RAB drilling program, consisting of 28 holes totalling 1,670 metres has now been completed at Kingsway.

The drilling program targeted coincident gold in soil samples and VLF-EM anomalies believed to be associated

with gold mineralization hosted by gabbro such as observed at the Company’s Cracker occurrence as well as

gold occurrences at Exploit Discovery’s Johnathon’s Pond to the northeast.

Assays for the first nine holes (total of 588 metres) have been received including three holes drilled at the

Cracker gold occurrence and six holes drilled at Midway, 2 kilometres to the southwest (see Figure 1).

Anomalous gold values (>0.1 g/t) were found in 5 holes, including a high of 0.84 g/t in hole KINRAB20-06 drilled

in the Midway area. Three of the remaining four holes did not intersect the target gabbro. Four holes containing

anomalous gold at Midway occur over a strike length of 250 metres.

Anomalous gold is associated with moderate to strong carbonate alteration and variable silicification of the

gabbro. Quartz veining is variable and locally abundant. Sulphide mineralization is dominated by pyrite with

arsenopyrite in higher grade intervals.

RAB drilling is a low impact tool that allows for rapid initial follow up of anomalous areas covered by

overburden. It has allowed LabGold to test anomalies over a large part of the property (4 areas over 9.5km) and

provided important new information on lithology, structure, alteration and mineralization.

Comprehensive exploration program led to Big Vein discovery after RAB drilling started

The RAB drilling program was part of LabGold’s comprehensive exploration program on the project conducted

over five months during the summer and fall of 2020. In addition to RAB drilling, work included more than 8,500

soil and 950 rock samples, over 260-line kilometres of Mag-VLF geophysics, a 20.3 line kilometre CSAMT

(controlled source audio magnetotellurics) survey, as well as prospecting and geological mapping.

This work led to the discovery of Big Vein and associated visible gold (see news releases dated November 9 and

December 3, 2020) after the RAB drilling had been permitted and was already underway. Gold mineralization

shows features characteristic of epizonal gold deposits and Big Vein has been traced over a strike length of 400

metres within a larger corridor of veining over 7.5km in strike length. This represents a primary target for

exploration and planning is underway for an aggressive diamond drill program for early 2021.

“While the assays received to date do not show high grades of gold, five of the six holes that intersected gabbro

do contain anomalous gold. These holes are located more than 2.5km from the visible gold occurrence at Big

Vein, suggesting widespread gold mineralization at Kingsway,” said Roger Moss, President and CEO of Labrador

Gold. “Our understanding of the different settings of gold mineralization on the property has grown by leaps and

bounds over the past five months of work and the results of RAB drilling will provide further information on the

property scale geology and structural architecture essential for effective targeting.”

Drill Collar Summary

Hole ID Area Easting Northing Elevation (m) Azimuth (o) Inclination (o) Depth (m)

KINRAB20-01 Cracker 662697 5439408 70.89 135 -50 73.152

KINRAB20-02 Cracker 662695 5439397 71.11 170 -60 60.96

KINRAB20-03 Cracker 662694 5439410 69.91 315 -60 47.244

KINRAB20-04 Midway 661628 5438084 84.6 315 -60 56.388

KINRAB20-05 Midway 661580 5438113 80.58 315 -60 56.388

KINRAB20-06 Midway 661570 5438095 80.55 270 -60 96.012

KINRAB20-07 Midway 661508 5437938 82.89 315 -60 47.244

KINRAB20-08 Midway 661513 5437935 82.88 135 -60 62.484

KINRAB20-09 Midway 661459 5437893 83.19 315 -60 88.392

Samples were shipped to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern

Analytical is an ISO/IEC17025 accredited laboratory. Samples were analyzed for gold by standard 30g fire assay

with ICP (inductively coupled plasma) finish. The company submits blanks, field duplicates and certified

reference standards at a rate of approximately 5% of the total samples in each batch.

Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian

regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information

that forms the basis for the disclosure contained in this release.

The Company gratefully ackno wledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior

Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.

About Labrador Gold

Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of

prospective gold projects in Eastern Canada.

In early March 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the

Gander area of Newfoundland. The property is a long strike to the northeast of New Found Gold’s discovery of

92.86 g/t Au over 19.0 metres on their Queensway property. (Note that mineralization hosted on adjacent or

nearby properties is not necessarily indicative of mineralization hosted on the Company’s property). In early July

2020, the Company signed an option agreement to acquire a third license to add to the property package which

now covers approximately 77 km 2. Infrastructure in the area is excellent located just 18km from the town of

Gander with road access to the project, nearby electricity and abundant local water.

The Hopedale gold property covers much of the Florence Lake greenstone belt that stretch es over 60 km. The

belt is typical of greenstone belts around the world but ha s been underexplored by comparison. Initial work by

Labrador Gold has identified a 3 kilometre mineralized section of the northern portion of the belt in the vicinity

of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold.

The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville,

which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment

gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration

program. Results of the exploration to date show gold anomalies in soils and lake sediments over a 15 kilometre

long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west

trend.

The Company has 110,487,104 common shares issued and outstanding and trades on the TSX Venture Exchange

under the symbol LAB.

For more information please contact:

Roger Moss, President and CEO Tel: 416-704-8291

Or visit our website at: www.labradorgold.com

@LabGoldCorp

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies

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

Forward-Looking Statements: This news release contains forward -looking statements that involve

risks and uncertainties, which may cause actual results to differ materially from the statements made.

When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”,

“believe”, “estimate”, “expect” and similar expressions are intended to identify forward- looking

statements. Such statements reflect our current views with respect to future events and are subject to

risks and uncertainties. Many factors could cause our actual results to differ materially from the

statements made, including those factors discussed in filings made by us with the Canadian securities

regulatory authorities. Should one or more of these risks and unce rtainties, such as actual results of

current exploration programs, the general risks associated with the mining industry, the price of gold and

other metals, currency and interest rate fluctuations, increased competition and general economic and

market factors, occur or should assumptions underlying the forward looking statements prove incorrect,

actual results may vary materially from those described herein as intended, planned, anticipated, or

expected. We do not intend and do not assume any obligation to update these forward -looking

statements, except as required by law. Shareholders are cautioned not to put undue reliance on such

forward-looking statements.

Figure 1. RAB drill hole locations at Cracker and Midway with ground magnetics (1st vertical derivative) and geochemistry.