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Outcrop Intercepts 0.4 Metres of 37 Grams Gold Per Tonne and 1,220 Grams Silver Per Tonne in new Megapozo Discovery

Drill Results

Outcrop Intercepts 0.4 Metres of 37 Grams

Gold Per Tonne and 1,220 Grams Silver Per

Tonne in new Megapozo Discovery

VANCOUVER, BC

,

Aug. 12, 2020

/CNW/ -

Outcrop Gold Corp.

(

TSXV: OCG) (

OTCPK: MRDD.F)

(DE: MRG1

) ("

Outcrop

") is pleased to announce initial results from shallow drilling in the Megapozo

target on its 100% owned Santa Ana Project in north Tolima,

Colombia

. Megapozo represents the

third high-grade shoot identified on the project, adding to earlier high-grade drill discoveries in La

Ivana and

Roberto Tovar

.

Highlights

New Megapozo drill discovery intercepted 0.4 metres of 37 g Au/t and 1,220 g Ag/t

adjacent to 2.25 metres of historic workings at just 24 metres depth

Intercepted numerous historic workings up to 3.5 metres wide

Currently drilling below historic workings where thicker widths and higher grades are

expected

El Dorado target drill ready with trenching results averaging 1.56 metres of 41 g Au/t and

up to 1,500 g Ag/t

Preliminary shallow drilling in Megapozo totals 560 metres in five holes. Significant workings were

encountered in drilling, such that vein intercepts and their lengths are significantly underrepresented.

An example is seen in drill hole 20DH22 where 2.25 metres of open workings occurs only 0.2 metres

from a 0.4 metre vein intercept of 37.4 g Au/t and 1,220 g Ag/t. Drill hole 20DH25 contains a 3.49

metre working probably reflecting a mined vein of the same width. Drill hole 20DH23 appears to

represent residual disarticulated vein material in a caved working such that the actual vein grade is

diminished with waste material.

The average intercept thickness of workings is 2.15 metres and veins and workings taken together

average 1.46 metres. Workings or veins were encountered in all five drill holes completed to date.

Due to the numerous workings, Outcrop has secured a laser survey of a production shaft in

Megapozo of 108 metres depth and has revised the drill plan to test Megapozo well below that level.

Drilling is currently testing deeper projections of the Megapozo target Paraiso and Miraflores veins.

Thicker and higher grades are anticipated from deeper and unmined projections of stacked veins. As

is seen in La Ivana, primary veins such as Paraiso and Miraflores are accompanied by subsidiary

closed-spaced parallel veins.

Outcrop plans to mobilize a second core rig to the project by

September 1

st

to condense the

planned exploration program and provide results over a shorter time interval. Approximately 9,000

metres remain to be drilled in this first phase of exploration.

Table 1: Significant intercepts are either 3 g Au/t or 200 g Ag/t. For equivalent calculations

$1,900

per ounce gold,

$26

per ounce silver,

$0.87

per pound lead and

$1.08

per pound zinc were used.

Hole ID

From (m)

To (m)

Width (m)

g Au/t

g Ag/t

% Pb

% Zn

g Eq Au/t

g Eq Ag/t

SAMP20DH21

10.66

11.76

1.10

Historic workings

SAMP20DH22

20.01

22.26

2.25

Historic workings

SAMP20DH22

24.60

25.00

0.40

37.8

1,220

0.68

0.80

53.6

4,282

SAMP20DH23

23.40

24.38

0.98

1.1

338

0.30

0.50

5.6

443

SAMP20DH23

30.92

31.15

0.23

1.1

249

0.32

0.28

4.4

350

SAMP20DH24

46.17

47.90

1.74

Historic workings

SAMP29DH25

62.16

65.65

3.49

Historic workings

Figure 1: Section of Megapozo with drilled and planned holes and location of 108-metre-deep

production shaft, where drilling is offset to test under workings.

Figure 1: Section of Megapozo with drilled and planned holes and location of 108-metre-deep

production shaft, where drilling is offset to test under workings. (CNW Group/Outcrop Gold Corp.)

Figure 2: Plan map of Megapozo drilling – current holes are testing below depth of 108 metre

shaft.

Figure 2: Plan map of Megapozo drilling – current holes are testing below depth of 108 metre shaft.

(CNW Group/Outcrop Gold Corp.)

El Dorado Target

Outcrop is also advancing drill targets in other areas that include El Dorado. Trenching in El Dorado

is favorable with ten samples greater than 1.0 g Au/t showing a range of 1.44 to 180 g Au/t and an

average of 41.1 g Au/t with up to 1,500 g Ag/t over an average of 1.56 metres. Silver appears to be

attenuated in the surface oxide zone. Trenching and soils in El Dorado provide a target footprint

comparable to La Ivana discovery five hundred meters to the east.

El Dorado, La Ivana, Megapozo, and

Roberto Tovar

represent a system of intersecting north

northeast and northwest trending low and high angle veins with high-grade shoots of greater than

200 metres by 200 metres in size.

QA/QC

Core samples were sent to ALS Chemex in

Medellin

for preparation and then to ALS Chemex in

Toronto

for analysis, with approximately three control samples inserted (one blank, one standard

and one field duplicate for each twenty samples). The samples were analyzed for gold using

standard fire-assay on a 50-gram sample with a gravimetric finish. Multi-element geochemistry was

determined by ICP-MS using either aqua regia (ME-MS41) or four acid (ME-MS61) digestion.

Comparison to control samples and their standard deviations indicates acceptable accuracy of the

assays and no detectible contamination.

About Santa Ana Project

The Santa Ana project comprises over 25,000 ha located in northern Tolima Department,

Colombia

,

190 km from

Bogota

. The project consists of five regional scale parallel vein systems across a trend

12 kilometres wide and 30 kilometres long. The Santa Ana project covers a significant part of the

Mariquita District where mining records date to at least 1585. The Mariquita District is the highest-

grade primary silver district in

Colombia

, with historic silver grades reported to be among the highest

in

Latin America

from dozens of mines.

Historic mining depths support a geologic and exploration model for composite mesothermal and

epithermal vein systems having mineralization that likely extends to great depth. At Santa Ana it is

unlikely that there is sharp elevation restriction common to high-grade zones in many epithermal

systems with no mesozonal component.

At the core Santa Ana target, located at the northern extent of just one of the regional vein systems,

at least eleven principle vein zones are recognized that cumulatively provide up to 14 km of

cumulative strike length – La Ivana (La Porfia vein system),

Roberto Tovar

(

Royal Mines

, including

the Santa Ana vein system), El Dorado, Morales, Pollera, Guanabanera,

San Antonio

, Palomos,

Murillo

, Culebra and Megapozo (El Paraiso vein system). The zones commonly each contain multiple

parallel veins. The veins can show both high-grade silver and high-grade gold mineralization and may

be both low and high angle depending on local controls.

About Outcrop Gold

Outcrop is a hybrid prospect generator active in

Colombia

acquiring gold and silver exploration

projects with world-class discovery potential. Outcrop performs its own grass roots exploration and

then employs a joint venture business model on its projects to maximize investor exposure to

discovery and minimize financial risk. Outcrop has seven primary projects in

Colombia

with three at

an advanced stage of exploration. Outcrop will conduct focused drilling on flagship properties such

as Santa Ana to create its own catalysts for value creation.

Qualified person

The technical information in this news release has been approved by Joseph P Hebert, a qualified

person as defined in NI43-101 and President and Chief Executive Officer of Outcrop.

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. Certain information contained herein constitutes "forward-looking information" under

Canadian securities legislation. Generally, forward-looking information can be identified by the use

of forward-looking terminology such as "potential", "we believe", or variations of such words and

phrases or statements that certain actions, events or results "will" occur. Forward-looking

statements are based on the opinions and estimates of management as of the date such

statements are made and they are subject to known and unknown risks, uncertainties and other

factors that may cause the actual results, level of activity, performance or achievements of Outcrop

to be materially different from those expressed or implied by such forward-looking statements or

forward-looking information, including: the receipt of all necessary regulatory approvals, capital

expenditures and other costs, financing and additional capital requirements, completion of due

diligence, general economic, market and business conditions, new legislation, uncertainties

resulting from potential delays or changes in plans, political uncertainties, and the state of the

securities markets generally. Although management of Outcrop have attempted to identify

important factors that could cause actual results to differ materially from those contained in

forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance

on forward-looking statements and forward-looking information. Outcrop will not update any

forward-looking statements or forward-looking information that are incorporated by reference

herein, except as required by applicable securities laws.

www.outcropgoldcorp.com

ON BEHALF OF THE BOARD OF DIRECTORS

SOURCE

Outcrop Gold Corp.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/August2020/12/c0007.html

%SEDAR: 00005232E

For further information:

Joseph P Hebert, Chief Executive Officer, +1 775 340 0450,

[email protected]; Mars Investor Relations, +1 416 888 4219,

[email protected]

CO: Outcrop Gold Corp.

CNW 16:00e 12-AUG-20