Savary GOLD Drilling Extends Known Zones, Intersects New Go Ld-Bearing Lenses and Discovers a New Zone

SAVARY GOLD DRILLING EXTENDS KNOWN ZONES, INTERSECTS NEW GO LD-BEARING

LENSES AND DISCOVERS A NEW ZONE

Toronto, Canada – January 17, 2017 – Savary Gold Corp. (TSX -V: SCA) (“Savary” or the “Company”) is

pleased to announce drill results for the initial phase of drilling completed in November and December

2016, on the Karankasso JV Project in south western Burkina Faso . At year-end 2016, upon closing, it is

anticipated that the Karankasso JV Project is approximately 69.5% owned by Savary and 30.5% owned by

Sarama Resources Limited (“Sarama”) with Savary as operator.

A total of 22 holes totalling 2,978.4 metres were completed in phase one of the drill program over a one-

month period prior to year-end. Phase two of the drill program, totalling approximately 10,000 metres in

approximately 90 drill holes, is planned to commence before the end of January, 2017. A summary of

select results, in the order they were drilled, are presented below (see Figure 1 for locations).

 2.09 g/t gold over 6.0 metres– New drill discovery

 1.54 g/t gold over 7.0 metres - Diosso South Zone - 500 metres north of resource pit* limit

 0.51 g/t gold over 15.0 metres – 40 metre depth extension of Diosso South Zone

 5.64 g/t gold over 2 metres – gap between Diosso South Zone resource pits*

 0.62 g/t Gold over 12 metres – gap between Diosso South Zone resource pits*

 1.84 g/t gold over 6 metres– depth extension to Diosso South zone at approx. 50 m depth

 14.95 g/t gold over 1 metre– 75 metre north extension from Karangosso Zone resource pit*

 1.13 g/t gold over 10.4 metres – 75 metre north extension to Karangosso Zone resource pit*

 1.87 g/t gold over 8 metres – new mineralization within Karangosso Zone resource pit*

 3.75 g/t gold over 7.2 metres –Karangosso Zone – NEW LENS at base of resource pit*

 4.2 g/t gold over 7.5 metres – extension to Karangosso Zone 20 metres below resource pit*

 2.3 g/t gold over 8 metres – extension to Karangosso Zone – 50 metres below resource pit*

 6.73 g/t gold over 7 metres – extension to Karangosso Zone to south– NEW LENS

 3.45 g/t gold over 5.5metres – extension to Karangosso Zone to south

* Mineral resource estimate presented in Savary news release dated October 8, 2015

“The first phase, of what we expect will be the largest drill program to date on the Karankasso Property

has led to important extensions to two of the zones with current mineral resource estimates and the

discovery of a new lens of gold mineralization. The next phase of drilling , of approximately 90 holes

totalling 10,000 metres, will follow-up on these results and will test targets developed in the southern

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portion of the property. ”stated Don Dudek, President and CEO of Savary. Mr. Dudek further noted that

“We are well financed and have abundant high quality drill targets which ma nagement believes will

lead to continued value build for the Karankasso JV and our respective shareholders.”

Figure 1 Karankasso JV Project – Locations of Significant fall 2016 Drill Intercepts.

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The drill program was focussed on testing for both shallow depth and strike extensions to the Karangosso,

Diosso South, West Trend and Splay 2 Zones. Of the 22 holes drilled, 17 holes were RC (reverse circulation)

only and five holes, at the Karangosso Zone, started with RC and finished with core drilling. Overall, 63%

of the first phase holes tested the Karangosso Zone area, 31% of the holes tested the Diosso South Area,

13% tested for extensions to the West Trend Zone and 13% tested for extensions to the Splay 2 Zone.

Additional drilling is planned over each of these zones, with the exception of the Splay 2 zone, in the next

phase of drilling. A summary of the assay composites is presented in Table 1 at the end of this news

release.

Karangosso Zone

Encouraging results were returned both along strike and at depth from most of the 14 holes that tested

the Karangosso Zone (see Figure 2). Drilling has succeeded in extending the Karangosso zone a further

100 metres to the north and another 50 metres to the south with the programs’ northernmost hole

approximately 400 metres north of the p it limits and the southernmost hole approximately 100 metres

south of the pit limits. As well, holes to depth, both below the currently modelled resource pit and to the

north of the resource pit, have further extended the gold mineralized lenses.

Drilling to the south of the Karangosso Zone resource pit returned the highest composite of this drill

program with an apparent new zone intercept of 6.73 g/t gold over 7.5 metres core length in hole HE-

RCD-16-56 and a 50 -metre south extension to the A lens of 3.4 5 g/t gold over 5.5 metres , in the same

hole. A hole, HE -RCD-16-55, that tested the down -plunge extension of the Karangosso Zone returned

three strong intercepts of 3.75 g/t gold over 7.2 metres (new lens of mineralization), 4.2 g/t gold over 7.5

metres and 2.3 g/t gold over 8.0 metres, at and below the resource pit limits. Figure 2, also presents the

next phase of anticipated drilling.

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Figure 2 Karangosso Zone Drill Plan and Select Drill Results

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Diosso South Zone

Seven holes were drilled to test the Diosso South Zone area (see Figure 3). Three of the holes were drilled

to fill in a gap between the existing mineral resource pits where mineral resources have been delineated.

Two holes were drilled to test for extensions to the mineralized lenses below the pit and two holes were

drilled to test for strike extensions to the mineralized zones. Follow-up drilling is planned over the length

of the area with additional wide spaced holes planned over the inferred strike exten sions to the gold

mineralized trend, to the north.

Of the three holes drilled in the gap between the existing resource pits, the best intercept returned 5.64

g/t gold over 2 metres. This intercept, along with drill intercepts of 2.08 g/t gold over 3 metres , 1.99 g/t

gold over 3 metres and 0.62 g/t gold over 12 metres, support a potential expansion of the mineral resource

into the gap. One of the holes drilled into the gap, returned two, weaker, one metre wide intercepts that

graded 1.21 and 1.43 g/t gold.

Two holes, dri lled below the pit limits returned 1.86 g/t gold over 6 metres and 0.51 g/t gold over 15

metres in the southern and northern portions of the Diosso South resource area (see Figure 3).

Two holes were drilled along strike to the north of the Diosso South mineral resource pit at approximately

75 and 375 metres north of the previous northernmost holes north of the Diosso South Zone with the

northernmost hole RC-16-40, located approximately 800 metres north of the Diosso South Zone mineral

resource pit. Hole RC-16-41, drilled approximately 500 metres north of the mineral resource pit, returned

a near surface intercept of 1.54 g/t gold over 7 metres. Hole RC-16-40, drilled another 300 metres further

north, returned an intercept of 3.37 g/t gold over 2 metres.

Based on drill and geophysical data, it appears that the Diosso South Zone mineralization can be traced

for approximately 2, 600 metres compared to a resource modelled strike of approximately 850 metres .

Additional drilling is required before an updated mineral resource estimate can be prepared in accordance

with National Instrument 43-101.

West Trend Zone

This zone and target area was previously referred to as the Kueredougou West Trend Zone.

Four, wide -spaced holes were completed along the e astern edge of a strong geophysical induced

chargeability anomaly (see Figure 3). One of the holes, RC-16-38, designed to undercut a spring 2016 hole

that returned 0.91 g/t gold over 5 metres , intersected a new zone at the top of the hole that returned

2.09 g/t gold over 6 metres and an interval of 2.14 g/t gold over 2 metres. The latter interval appears to

correlate with the interval in hole RC-16-38.

The remainder of the holes are interpreted to have been collared too far west to intersect the original

target. However, two of these three holes did intersect significant gold mineralization with the best

returning 2.04 g/t gold over 2 metres. These additional intercepts suggest the potential for additional,

parallel lenses of gold mineralization.

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Newly discovered zones of artisanal mining in the area suggest additional potential as well.

Figure 3 Diosso South and West Trend Drill Plan and Select Drill Results

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Splay 2 Zone Drilling

Three holes were completed in the Splay 2 Zone area to follow-up on a spring 2016 drill hole that returned

9.75 g/t gold over 7 metres and 12.24 g/t gold over 4 metres. Only one of the holes returned significant

results with an assay of 1.07 g/t gold over 1 metre. No further work is planned in the Splay 2 area.

Drill Target Development

In conjunction with drilling, Savary on behalf of the Karankasso JV has also completed approximately 275

line kilometers of induced polarization geophysical surveys, 8,269 metres of auger drilling in 1,229 holes,

collected 857 soil samples and c arried out additional mapping and prospecting over the property. This

data will be interpreted and used to develop new drill targets for the planned 10,000 metre drill program.

QA/QC Comments

Savary’s procedure for handling reverse circulation drill chips comprise s initial riffle splitting of the rock

chips from one metre drill length samples into approximately 2.5 kilogram samples, as well as description

and logging into a database. A duplicate 2 .5 kilogram sample, prepared at the same time as the assay

sample, is kept as a reference for each sample. NQ-size core assay samples are first logged into a database

and then are sawn in half with half of the core submitted for analys is; the length of t he core samples

depends on logged geological controls with samples varying from 0.3 metres to 2.0 metres in length. A

sample duplicate and assay blank was inserted sequentially every 5 to 14 samples and an assay standard

was inserted every 2 9 to 34 samples . This results in 8% of the assayed samples being

reference/blank/control samples. Blanks and duplicates were preferentially inserted in visually

mineralized zones to better test the assay results. This sampling procedure was periodically reviewed by

Savary’s President and CEO, and the Company QP, Don Dudek, P. Geo. All assay samples were collected

at site by staff from SGS Burkina Faso SA (‘SGS’) from Ouagadougou, Burkina Faso where sample

preparation and analysis were performed. Each sample was dried, crushed to 75% passing 2 mm and then

split to 1.5 kg by rotary splitter. Th is split was pulverized to 85% passing 75 m. Fifty grams of the

pulverized material was analysed for gold via fire assay with an atomic absorption spectroscopy (AAS)

finish. SGS operates according to ISO 17025 standards and institutes a full Quality Assurance/Quality

Control (QA/QC) program consisting of insertion of internal blanks, standard reference material, repeats

and reject splits which in total account for up to 25% of all determinations conducted. All standards and

blank control samples returned results within expected ranges.

About Savary Gold Corp.

Savary is a Canadian explorat ion company which, along with anticipated JV partner Sarama Resources

Limited, is focused on exploring and developing the Karankasso Gold Project in Burkina Faso. The Project

is located within the Birimian age, Houndé Greenstone Belt, which hosts Semafo’s Mana mine, Roxgold’s

Yaramoko Mine and additional gold deposits that are presently subject to production decisions and

extensive exploration efforts (including Endeavour Mining’s Houndé Project, Orezone’s (acquired by

Sarama) Bondi Project and Sarama’s /Acacia’s South Houndé Project, which is adjacent to Savary ’s

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property). The Project contains an Inferred open pit constrained mineral resource estimate of 9.16 million

tonnes grading 2.28 g/t gold (Savary news release November 24, 2015). For additional information please

visit our website at www.savarygold.com.

Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument

43-101, has reviewed and approved the scientific and technical information in this press release.

SAVARY GOLD CORP.

On behalf of the Board

“Don Dudek”

President & Chief Executive Officer

For more information, please contact:

Don Dudek, President and CEO

T: 647-259-2097

E: [email protected]; www.savarygold.com

Cautionary Notes

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

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

This news release may contain forward-looking statements. These statements include statements regarding the details

of the potential value growth of the JV, the upside of the property, the drill program, the company’s exploration plans

and the timing of results, the focus on existing drill targets and new targets. These statements are based on current

expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because

of factors discussed in the management discussion and analysis section of our interim and most recent annual financial

statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations.

We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.

Table 1 - 2016 Drill Results Summary

Hole From To Width Gold g/t Zone/Trend

HE-RC-16-36 60.00 61.00 1.00 0.45 Splay 2

HE-RC-16-37 13.00 14.00 1.00 0.42 Splay 2

HE-RC-16-37 89.00 90.00 1.00 1.07 Splay 2

HE-RC-16-37 106.00 107.00 1.00 0.43 Splay 2

HE-RC-16-38 6.00 12.00 6.00 2.09 West Trend

HE-RC-16-38 66.00 67.00 1.00 1.03 West Trend

HE-RC-16-38 74.00 76.00 2.00 2.14 West Trend

HE-RC-16-38 87.00 89.00 2.00 1.29 West Trend

HE-RC-16-38 99.00 100.00 1.00 0.77 West Trend

HE-RC-16-39 28.00 30.00 2.00 1.01 West Trend

HE-RC-16-39 56.00 57.00 1.00 0.68 West Trend

HE-RC-16-40 55.00 58.00 3.00 0.52 Diosso