C - Contact Gold Reports 2022 Financial and Operating Results and Provides Corporate Update

(TheNewswire)

Vancouver, BC - TheNewswire - April 4, 2023 - Contact Gold Corp. (the "Company" or "ContactGold") (TSXV:C ) ( OTC:CGOLF) is pleasedto announce the filing of its financial and operating results for theyear ended December 31, 2022.  All dollar amounts are presented inCanadian dollars unless otherwise stated.

Contact Gold is focused on advancing the Green Springsoxide gold project ("Green Springs") located on Nevada’sCortez Trend, and the Pony Creek gold project ("PonyCreek"), both of which host extensive and robust Carlin Type goldsystems.

The Pony Creek project is located on the southernCarlin Trend and ties on to the southern boundary of thefeasibility-stage South Railroad gold project operated by Orla MiningLtd. (TSX: OLA; NYSE: ORLA).  Exploration at the Company’s GreenSprings project is being funded through a partnership with asubsidiary of Centerra Gold Inc. ("Centerra") pursuant to anearn-in arrangement (the "Centerra Farm-out").

2022 highlights and recentdevelopments

• Entered into the Centerra Farm-out providing Centerra theoption to acquire a 70% interest in Green Springs for cumulativeearn-in exploration expenditures of USD 10,000,000 and aggregate cashpayments to the Company of USD 1,000,000, over a four-year period.

  • Centerra will solely fund a minimum commitment of USD1,500,000 in exploration expenditures during the first year of theearn-in, or pay the difference to Contact Gold in cash.

  • Contact Gold is the project manager for exploration atGreen Springs for at least the first year of the Centerra Farm-out(thereafter Centerra has the right to be project manager), and theCompany shall collect a management fee based on eligible expendituresthrough the earn-in.

  • Green Springs is strategically located 7 km immediatelyeast of the Gold Rock project operated by Calibre Mining Corp. (TSX:CXB; OTCQX: CXBMF) and 20 km southeast of their Pan Mine.

• Closed a non-brokered private placement (the "2023 PrivatePlacement") of 50,000,000 units ("Units") at a price of $0.02 per Unit forgross proceeds of $1,000,000.  Each Unit consists of one common shareof the Company (a "Contact Share") and one Contact Sharepurchase warrant (a "Warrant"), with each Warrant entitlingthe holder to purchase an additional Contact Share at a price of $0.05per Contact Share until expiry on February 23,2026

• Completed the 2022 exploration and drilling program atGreen Springs with 23 holes completed for 2,123 metres.

• 2023 drilling highlights at the Tango target:

  • 0.51 grams per tonne ("g/t") gold("Au") over 30.48 metres, from a depth of 4.57 metres, indrill hole GS22-09

    • Including: 1.02 g/t Au over 3.05 metres

  • 0.70 g/t Au over 16.76 metres, from a depth of 3.05metres, in drill hole GS22-08

  • 0.45 g/t Au over 24.38 metres, from a depth of 19.81metres, in drill hole GS22-11

• 2023 drilling highlights at the X-Ray target:

  • 1.66 g/t Au over 28.96 metres, from a depth of 9.14metres, in drill hole GS22-01

    • Including: 2.66 g/t Au over 15.24 metres

  • 0.82 g/t Au over 35.05 metres, from a depth of 9.14metres, in drill hole GS22-02

    • Including: 1.32 g/t Au over 16.76 metres

  • 1.95 g/t Au over 41.15 metres, from a depth of 15.24metres, in drill hole GS22-04

    • Including: 3.71 g/t Au over 15.24 metres

• Announced an initial mineral resource estimate at PonyCreek, featuring:

  • 433,000 inferred pit total constrained ounces at anaverage grade of 0.52 g/t Au determined with a US$1,600/oz pit shell and cut off grades of 0.14and 0.22 g/t gold, depending upon recovery profile, with an overallstrip ratio of 2.98 (see News Release datedFebruary 28, 2022 ).

2023 Outlook

“2023 is the first year of our partnership withCenterra at Green Springs, and we are very excited to be starting adrill program at Green Springs in mid-May to follow-up on the Tango,X-Ray, and BC Gap discoveries made in 2021, and the outstanding followup results from the 2022 drill program.  Drilling is designed toincrease the size and scale of these exciting high-grade oxide golddiscoveries. The exploration and growth potential at Green Springs isexcellent, and the team has developed a large number of additionaldrill ready targets.” said Matt Lennox-King, President & CEO ofContact Gold, “At Pony Creek, our maiden resource estimate remainswide open for expansion, and we aim to complete resource expansiondrilling in H2 2023.  Pony Creek hosts the large scale, undrilledMustang and Elliot Dome targets, which we are confident will delivernew oxide gold discoveries.   We believe Green Springs and Pony Creekprovide a strong platform for exploration success and resource growthin one of the world’s premier mining jurisdictions.”

Selected financial data

Details of financial results as at and for the yearsended December 31, 2022, and 2021 are described in the consolidatedfinancial statements and related notes thereto (the “FinancialStatements”), as prepared in accordance with International FinancialReporting Standards ("IFRS"), and the MD&A for thecorresponding periods; copies of which are available on SEDAR at www.sedar.com .

The following selected financial data is derived fromthe Financial Statements.

Losses attributable to shareholders for the years endedDecember 31, 2022, and 2021 of $3.26 million and $5.67 million,respectively, include (i) exploration and evaluation expenditures atGreen Springs, Pony Creek, and certain other mineral propertyinterests of $1.42 million (2021: $2.79 million), (ii) non-cashstock-based compensation expense of $0.06 million (2021: $0.36million), (iii) a non-cash impairment charge on the write-down anddisposal of certain exploration properties of (2021: $0.16million), and (iv) professional fees, administration & investorrelations expenditures, and wages and salaries of $1.85 million (2021:$2.37 million).

During the year ended December 31, 2022, explorationand evaluation expenditures predominantly related to activity at GreenSprings as the drill program continued.  Approximately $1.05 million(net of amounts recovered from Centerra) in expenditures had beenincurred through year end for exploration at Green Springs (2021:$2.41 million).  An additional $0.34 million in expenditures wereincurred at Pony Creek during the year (2021: $0.33 million).

Other comprehensive gain attributable to shareholdersfor the year ended December 31, 2022, was $2.10 million, and primarilyreflects the foreign currency impact arising on the carrying value ofthe assets and liabilities of the Company’s US operating entity(2021: loss of $0.21 million).

Net cash operating outflows for the year ended December31, 2022, of $2.69 million (2021: $5.06 million) include explorationexpenditures ($1.42 million), marketing and investor relationsactivities ($0.25 million), and general corporate activities ($1.02million).

The Company capitalizes mineral property acquisitioncosts, and expenses exploration expenditures as incurred.  Totalassets at December 31, 2022 primarily comprise: exploration propertiesof $30.89 million (2021: $28.92 million), and $0.14 million in cash(2021: $2.68 million).  The year-over-year change reflects a $1.98increase to the reported value of Contact Gold’s mineral propertyinterest caused by foreign exchange, and a decrease of $2.54 millionin cash arising from ongoing exploration and businessexpenditures.

Total liabilities at December 31, 2022, includeaccounts payable and accruals of $0.54 million, a short-term advanceof $0.1 million, and non-current liabilities of $0.15 million relatingto the mineral properties.

Annual General Meeting

The Company will hold its annual general meeting ofshareholders ("Annual Meeting") on Thursday, May 25, 2023,commencing at 1:30 pm Vancouver time. Shareholders will be invited tojoin by teleconference.

Contact Gold uses the Notice and Access process for thedelivery of meeting materials. Under Notice and Access, instead ofreceiving printed copies of the meeting materials, shareholdersreceive a Notice and Access Notification containing details of theAnnual Meeting, its date and purpose, how to access the liveteleconference call, and information on how to access the meetingmaterials electronically. Shareholders with existing instructions ontheir account to receive printed materials will be mailed a printedcopy of the meeting materials.

Closing of financing

The 2023 PrivatePlacement received final approval from the TSXV on March 1, 2023.There were no payments made to any non-arms’ length parties, orpersons conducting investor relations activities in connection withthe 2023 Private Placement.

Planned use of net proceeds include the resumption ofactive exploration at Pony Creek, and for general working capital. It is expected that at least half of the funds will be dedicated tothe Pony Creek property.

Scientific and Technical Information

The scientific and technical information contained inthis news release has been reviewed and approved by Vance Spalding,CPG, VP Exploration, Contact Gold, who is a “qualified person”within the meaning of National Instrument 43-101 Standards ofDisclosure for Mineral Projects (“NI 43-101”).

With the exception of Pony Creek, Contact Gold mineralproperty interests are all early stage and do not contain any mineralresource estimates as defined by NI 43-101.   With the exception ofthe Pony Creek deposits, the potential quantities and grades disclosedherein are conceptual in nature and there has been insufficientexploration to define a mineral resource for the targets disclosedherein. It is uncertain if further exploration will result in targetsat Green Springs, other targets at Pony Creek, or on any of ContactGold’s properties being delineated as a mineral resource.

Scientific and technical information contained hereinis subject to all of the assumptions, qualifications and proceduresset out in the technical reports, respectively entitled (i)"Technical Report and Maiden Mineral Resource, Pony CreekProperty, Elko County, Nevada, USA", prepared for Contact Gold,effective and signed February 24, 2022, as prepared by MichaelDufresne, M.Sc., P.Geol., P. Geo., and Fallon T. Clarke, B.Sc.,P.Geo., of APEX Geoscience, based in Edmonton, Alberta; and (ii) “NI43-101 Technical Report for the Green Springs Project, White PineCounty, Nevada, USA” prepared for Contact Gold, with an effectivedate of June 12, 2020, and dated August 5, 2020, as prepared by JohnJ. Read, C.P.G; an independent consultant and qualified person underNI 43-101. Each of these technical reports can be viewed under ContactGold’s issuer profile on SEDAR at www.sedar.com , and referenceshould be made to the full details within each, respectively.

Additional information about the Company is availableat www.contactgold.com .

For more information, please contact (604) 449-3361 foreither:

John Wenger, Chief Financial Officer wenger@contactgold.com

Cautionary Note Regarding Forward-Looking Information

This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the anticipated explorationactivities of the Company at the Green Springs and Pony Creekproperties, the completion of the earn-in by Centerra at GreenSprings, receipt of applicable regulatory approvals, plannedexpenditures through the remainder of the year, and the results of anyexploration activities undertaken.

These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: impactsremaining from the global disruption caused by the Covid-19coronavirus outbreak ,potential liquidity issues appearing in the US banking industry, andthose arising from the conflict in Europe amongst Russia, Ukraine anda number of other nations; fluctuations in general macroeconomicconditions; fluctuations in securities markets; fluctuations in spotand forward prices of gold, silver, base metals or certain othercommodities; fluctuations in currency markets (such as the Canadiandollar to United States dollar exchange rate); change in national andlocal government, legislation, taxation, controls, regulations andpolitical or economic developments; risks and hazards associated withthe business of mineral exploration, development and mining (including environmentalhazards, industrial accidents, unusual or unexpected formationspressures, cave-ins and flooding); inability to obtain adequateinsurance to cover risks and hazards; the presence of laws andregulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may be other factors that cause results not to beas anticipated, estimated or intended. Readers should not place unduereliance on the forward-looking statements and information containedin this news release. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.

Neither the TSXV nor its Regulation Services Provider(as that term is defined in the policies of the TSXV) acceptsresponsibility for the adequacy of this release. No stock exchange,securities commission or other regulatory authority has approved ordisapproved the information contained herein.

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