MEXICAN GOLD EXTENDS HIGH - GRADE EL DORADO DIKE CONTACT MINERALIZATION AT LAS MINAS Hole LM - 17 - ED - 44 grades 7.86 g/t Au Eq (3.91 g/t Au, 5.93 g/t Ag, 2.36 % Cu) over 18.0 metres

Thunder Bay, Ont. TSX-V: MEX

For Immediate Release January 22, 2018

MEXICAN GOLD EXTENDS HIGH - GRADE EL DORADO DIKE CONTACT

MINERALIZATION AT LAS MINAS

Hole LM - 17 - ED - 44 grades 7.86 g/t Au Eq (3.91 g/t Au, 5.93 g/t Ag, 2.36 % Cu)

over 18.0 metres

Mexican Gold Corp. (the “Company” or “Mexican Gold ”) ( TSX-V: MEX / OTCMKTS: SRXLF /

FRA: 4QW1 ) is pleased to announce additional positive drill results for drilling recently completed to

extend the high - grade dike contact mineralized zones at its Las Minas property. All holes returned

significant mineralization, including 7.86 g/t Au Eq (3.91 g/t Au, 5.93 g/t Ag, 2.36% Cu) over 18.0

metres in hole LM – 17 – ED – 44.

The current drill results are for holes drilled along the east and west contacts of the El Dorado Dike

Contact zone. The west contact zone has been delineated for over 360 metres along strike. The recent

drilling outlined high- grade mineralization on the east contact zone over a strike distance of 140 metres.

Both zones remain open along strike for expansion. Additional expansion and delineation drilling is

scheduled to commence in early February.

Highlights from diamond drilling at El Dorado Dike Contact zones include:

Diamond drill hole LM - 17 - ED - 22.

 9.98 g/t Au Eq ( 3.55 g/t Au, 21.10 g/t Ag, 3.74% Cu) over 4.30 metres

within 2.37 g/t Au Eq ( 0.91 g/t Au, 4.84 g/t Ag, 0.85% Cu) over 32.3 metres

Diamond drill hole LM - 17 - ED - 23.

 3.43 g/t Au Eq (1.18 g/t Au, 8.50 g/t Ag. 1.30 % Cu) over 4.00 metres

within 1.74 g/t Au Eq (0.60 g/t Au, 4.32 g/t Ag, 0.66% Cu) over 10.0 metres

Diamond drill hole LM - 17 - ED - 44.

 7.86 g/t Au Eq (3.91 g/t Au, 5.93 g/t Ag, 2.36 % Cu) over 18.0 metres

 4.60 g/t Au Eq (1.90 g/t Au, 4.15 g/t Ag, 1.61 % Cu ) over 10.20 metres

Diamond drill hole LM - 17 - ED - 45.

 7.91 g/t Au Eq (5.87 g/t Au, 3.90 g/t Ag, 1.21 % Cu) over 4.0 metres

within 4.00 g/t Au Eq (2.68 g/t Au, 2.92 g/t Ag 0.79% Cu) over 10.0 metres

Diamond drill hole LM - 17 - ED - 46.

 3.59 g/t Au Eq (3.48 g/t Au, 1,80 g/t Ag, 0.05% Cu) over 4.0 metres

Diamond drill hole LM - 17 - ED – 47.

 3.58 g/t Au Eq (3.49 g/t Au, 0.55 g/t Ag, 0.05% Cu) over 6.0 metres

within 2.01 g/t Au Eq (1.96 g/t Au, 0.32 g/t Ag, 0.03% Cu) over 14.0 metres

Diamond drill hole LM - 17 - ED – 48.

 4.84 g/t Au Eq (2.86 g/t Au, 5.06 g/t Ag, 1.16 % Cu) over 36.0 metres

and 2.12 g/t Au Eq (1.57 g/t Au, 1.53 g/t Ag, 0.32% Cu over 18.0 metres

within 1.48 g/t Au Eq (1.14 g/t Au, 1.04 g/t Ag, 0.20 % Cu over 30.0 metres

Key Points:

 Drilling outlined high - grade mineralization on the east dike contact zone over a strike distance of 140

metres.

 Mineralization occurs on both sides of the dike, with the west contact zone extending for

approximately -360 metres along strike and the east contact zone 140 metres.

 Both east and west dike contact zones remain open for expansion along strike.

 Dike contact mineralization is significantly higher grade than the initial resource grade, with

mineralized core intervals up to 36.0 metres.

.

Selected drill results are included in Table 1 below.

For a map of drill collars and traces for the El Dorado Dike Contact Zone drilling see Figure 1. Plan View

of Diamond Drill Hole Collars and Traces.

Table 1 El Dorado Dike Contact Drill Results

Hole ID (Az./Dip)

(degrees)

From

(m)

To

(m)

Intercept

(m) (1)

Au

(g/t)

Ag

(g/t)

Cu

%

Au Eq

(g/t)

WEST DIKE CONTACT ZONE

LM - 17 - JB - 22 (2150/-450) 56.3 60.6 4.3 3.55 21.1

0

3.74 9.98

within 28.3 60.6 32.3 0.91 4.84 0.85 2.37

Including 32.3 60.6 28.3 1.02 5.46 0.96 2.68

and including 32.3 44.3 12.0 0.78 2.58 0.48 1.60

LM - 17 - JB - 23 (2100/-52 0) 54.5 58.5 4.0 1.18 8.50 1.30 3.43

within 52.5 58.5 6.0 0.87 6.20 0.94 2.50

within 52.5 62.5 10.0 0.60 4.32 0.66 1.74

and 70.3 76.3 6.00 0.44 2.80 0.71 1.64

LM - 17 - ED – 44 (2320/-600) 182.0 192.2 10.2 1.90 4.15 1.61 4.60

and 196.2 204.8 8.6 0.45 1.98 0.29 0.95

and 210.8 228.8 18.0 3.91 5.93 2.36 7.86

LM - 17 - ED - 47 (1800/-670) 22.0 28.0 6.0 3.49 0.55 0.05 3.58

within 22.0 36.0 14.0 1.96 0.32 0.03 2.01

LM - 17 - ED - 48 (780/--550) 161.5 197.5 36.0 2.86 5.06 1.16 4.84

and 243.5 264.4 18.0 1.57 1.53 0.32 2.12

within 231.5 264.4 30.0 1.14 1.04 0.20 1.48

EAST DIKE CONTACT ZONE

LM - 17-ED - 45 (750/-520) 159.8 163.8 4.0 5.87 3.90 1.21 7.91

within 159.8 169.8 10.0 2.68 2.92 0.79 4.00

and 111.5 125.5 10.0 0.83 0.87 0.25 1.25

within 107.5 127.5 20.0 0.64 0.77 0.24 1.04

LM - 17 - ED - 46 (850/-500) 41.0 45.0 4.0 3.48 1.80 0.05 3.48

and 189.0 192.0 3.00 0.60 1.77 0.79 1.91

Brian Robertson, President and CEO commented, “These high – grade drill results over significant widths

continue to expand the mineral resource and increase the grade for the El Dorado/ Juan Bran zone. The

expanded resource and higher grades will have a positive impact on an updated resource estimate. The

discovery of the high- grade dike contact mineralization also provides a model for exploring additional

dike contact zones that are known to exist on the property."

Figure 1 Plan View of Diamond Drill Hole Collars and Traces

(1) All intervals are core widths measured along the axis of the core and true widths are unknown at this

time.

Assays are uncut, length – weighted average values.

Gold equivalent (Au Eq) calculations use metal prices of US $1250/oz. for gold, US $18.00/oz. for silver and US

$3.00 /lb. for copper. No adjustments have been made for potential relative differences in metal recoveries.

Au Eq g/t = Au g/t + [(Ag g/t x 0.014) + (Cu% x1.64)]

About Las Minas

The Las Minas Project hosts near - surface gold - silver and copper skarn mineralization and high - grade

gold - silver epithermal vein deposits. The project is comprised of six mineral concessions covering

approximately 1,616 hectares (3,995 acres), with several small scale, past - producing mines and a

number of untested targets.

The district is host to a large gold, silver and copper skarn system that has a production history that

extends back to the Aztec era. The Las Minas diorite intrusive measures approximately 10 kilometres in

diameter and underlies the Las Minas concessions. The mineralization controls and association with

magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos

gold deposits.

Information Regarding NI-43-101 Initial Mineral Resource Estimate

In 2017, the Company reported an initial mineral resource estimate of 304,000 gold equivalent ounces

(Au Eq ozs) contained within 4,970,000 tonnes grading 1.90 g/t Au Eq (0.92 g/t Au, 0.59% Cu. 4.37 g/t

Ag) in a Measured and Indicated category for the Eldorado/ Juan Bran and Santa Cruz zones , with an

additional Inferred Resource of 719,000 Au Eq ozs contained within 10,304,000 tonnes grading 2.17 g/t

Au Eq.( 1.08 g/t Au, 0.66 % Cu, 3.99 g/t Ag) (reported in the Company’s news release dated August 1,

2017, and the 43-101 report titled “NI 43 - 101 Technical Report Mineral Resource Estimate Las Minas –

Gold – Copper project”, John T, Boyd Company, Mining and Geological Consultants, Denver, Colorado,

USA , Report No “3830.001“ dated September, 2017, prepared by John J. Read, P. Geo., Q.P. and Sam

J. Shoemaker Jr., Registered Member S.M.E, Q.P.) The report is available on SEDAR.

The El Dorado / Juan Bran and Santa Cruz zones remain open for expansion and comprise two of eight

known mineralized zones at the Las Minas property.

Quality Assurance/Quality Control

The technical information in this news release has been reviewed and approved by Sonny

Bernales, P. Geo., a registered Professional Geoscientist in the Province of British Columbia and a

qualified person as defined by NI 43-101. Mr. Bernales is responsible for logistics and supervision of all

exploration activity conducted by Mexican Gold on the property.

The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which

includes inserting mineralized standards and blanks into the sample stream, about 1 for every 10

samples. The standards and blanks were obtained from CDN Resource Laboratories Ltd. of Langley, BC,

Canada. Each sample bag is properly sealed and kept in a secured, restricted storage place prior to

shipping to the lab. Samples are shipped directly by Mexican Gold or picked-up by the lab vehicle with

chain of custody/sample submittal signed and dated. The Company sends its samples to SGS Mineral

Services (ISO/IEC 17025) at Durango, Mexico, an accredited and independent laboratory.

About Mexican Gold Corp.

Mexican Gold Corp. is a Canadian based mineral exploration company committed to building long-term

value through ongoing discoveries and strategic acquisitions of prospective precious metals deposits in

Mexico. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas

district in the Veracruz State, Mexico. The district is host to one of the largest under-explored skarn

systems known in Mexico.

For more information, please contact:

Brian Robertson, President & CEO

Phone: 807-474-4270 or 807-251-1816

Fax: 807-474-4272

E-mail: [email protected]

Website at www.mexicangold.ca

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION : This news release includes certain information that may

constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not

limited to, statements about the magnitude or quality of mineral deposits, anticipated advancement of mineral properties or programs,

future operations, results of exploration, prospects, commodity and precious metals prices, future work programs, anticipated financial and

operational results, capital expenditures and objectives and the completion and timing of mineral resource estimates. Forward-looking

information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and

unknown risks, uncertainties, and other factors, which may cause the actual results and future events to differ materially from those

expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents available at

www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking

information. All forward-looking information contained in this press release is given as of the date hereof and is based on the opinions and

estimates of management and information available to management as at the date hereof. The Company disclaims any intention or

obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except

as required by law.