C - Contact Gold Reports Q1 2023 Financial and Operating Results and Voting Results from Annual Meeting

(TheNewswire)

Vancouver, B.C. - TheNewswire - May 26, 2023 – Contact Gold Corp. (the"Company" or "Contact Gold") (TSXV:C ) ; ( OTC:CGOLF) is pleasedto announce its financial and operating results for the three monthsended March 31, 2023, and to provide the results of the Company’srecent Annual Meeting of Shareholders (the " Meeting " ).

Contact Gold is focused on advancing the Green Springsoxide gold project ("Green Springs") and the Pony Creek goldproject ("Pony Creek"), both of which host extensive androbust Carlin Type gold systems.

Green Springs is located on Nevada’s Cortez Trend, 7km immediately east of the Gold Rock project operated by CalibreMining Corp. (TSX: CXB; OTCQX: CXBMF). Exploration at Green Springs isbeing funded through a partnership with a subsidiary of Centerra GoldInc. ("Centerra") pursuant to an earn-in arrangement (the"Centerra Farm-out").  Pony Creek is located on thesouthern Carlin Trend and ties on to the southern boundary of thefeasibility-stage South Railroad gold project operated by Orla MiningLtd. (TSX: OLA; NYSE: ORLA).

Recent developments and Q1 2023highlights

• Entered into theCenterra Farm-out providing Centerra the option to acquire a 70%interest in Green Springs for cumulative earn-in explorationexpenditures of USD 10,000,000 and aggregate cash payments to theCompany of USD 1,000,000, over a four-year period.

  • Centerra will 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.

• Expanded the Green Springs property area by 19% throughstaking of open ground covering prospective targets.

• Launched the 2023 exploration program at Green Springs,funded by Centerra and led by Contact Gold.

  • The reverse circulation("RC") drill program is expected to begin at the end of May2023.

  • Budget of USD 1.85 million including a planned 4,500metres of RC drilling, for up to 45 drill holes

    • Approved 2023 exploration and drill program representsa 23% larger program than the contractual minimum first-year workcommitment.

    • Drill program is more than twice that of the 2021discovery program.

• Closed a non-brokered privateplacement (the "2023 Private Placement") of 50,000,000 units ("Units") ata price of $0.02 per Unit for gross proceeds of $1,000,000.  EachUnit consists of one common share of the Company (a "ContactShare") and one Contact Share purchase warrant (a"Warrant"), with each Warrant entitling the holder topurchase an additional Contact Share at a price of $0.05 per ContactShare until expiry on February 23, 2026

For further details on the earn -in with Centerra please seeContact Gold news release dated December 9, 2022 https://www.contactgold.com/_resources/news/nr-20221209.pdf

For a location map of the Green Springs project, pleaseclick:

https://www.contactgold.com/_resources/news/CG_map1__220923.jpg

Selected Q1 2023 financialdata

Details of financial results as at and for the threemonths ended March 31, 2023 and 2022, are described in the unauditedcondensed interim consolidated financial statements and related notesthereto (the "Interim Financial Statements") as prepared inaccordance with International Financial Reporting Standards("IFRS"), and the MD&A for the corresponding periods,copies of which are available on SEDAR at www.sedar.com .

The following selected financial data is derived fromthe Interim Financial Statements. Unless otherwise stated, theinformation herein, and in the tables below, is presented in Canadiandollars.

Losses attributable to shareholders for the threemonths ended March 31, 2023 of $0.30 million (2022: $0.82 million),reflect primarily (i) costs incurred for professional, legal andadvisory fees, administration & office expenditures, wages andsalaries, and investor relations activities (in aggregate, $0.32million, compared to $0.58 million for the same period in 2022), and(ii) exploration and evaluation of the Company’s explorationproperty interests ($0.07 million, net of the amount recovered fromCenterra).

Losses for the current period are lower than those ofthe prior period reflecting, in part, the timing of explorationactivities at Green Springs, the accounting offset of the majority ofexpenditures incurred at Green Springs as a result of the recovery offunds from Centerra, and an overall reduction of legal and advisoryfees, and administration & office expenditures as part of anongoing effort to reduce non-exploration-related expenditures.

The Company has elected to expense explorationexpenditures as incurred.  During the three months ended March 31,2023, exploration and evaluation expenditures were predominantlyrelated to preparations for a resumption of activity at Green Springsin June 2023, including the evaluation and review of data generatedthrough 2022.

Details of exploration and evaluation activitiesincurred and expensed by Contact Gold at Green Springs, includingnon-cash items for each respective period , are asfollows:

Other comprehensive gain attributable to shareholdersfor the three-month period ended March 31, 2023 was $0.40 million(three months ended March 31, 2022: loss of $0.42 million).  Theother comprehensive loss or gain in a given period reflects primarilythe foreign currency impact arising on the carrying value of theCompany’s U.S. entity which holds the exploration propertyportfolio, whereby a gain or loss reflects the relative value of theCanadian dollar (the Company’s reporting currency) compared to theUnited States dollar (the currency in which the value of theexploration property portfolio is recorded), and the revaluation ofmarketable securities.

Summarized balances from the statements of financialposition of each period are as follows:

Total assets at March 31, 2023 comprise primarily:exploration properties of $30.82 million, and $0.81 million in cashand cash equivalents.  The Company also holds $0.11 million inmarketable securities.  At December 31, 2022, total assets consistprimarily of the value of exploration properties ($30.89 million), andcash ($0.14 million).

Total liabilities at March 31, 2022 include a provisionfor estimated future site reclamation costs $0.15 million (December31, 2022: $0.15 million), normal course payables and accruals of $0.30million (December 31, 2022: $0.54 million), settled after period end,and a balance of $0.10 million advanced by Centerra in advance ofexploration completed through the months of April and May 2023.

Net cash operating outflows for the three-month period ended March 31, 2023 , of $0.18 million (2022: $0.59 million) include explorationexpenditures ($0.24 million), marketing and investor relationsactivities ($0.02 million), general corporate activities ($0.07million), and the settlement of balances due torelated parties, service providers and vendors .

Voting Result from AnnualMeeting

The Company is also pleased toannounce voting results from the May 25, 2023 Annual General Meeting. A total of 171,632,812 common shares werevoted, representing the votes attached to approximately 48.82% of alloutstanding common shares.  Shareholders voted in favour of theelection of all director nominees.

Shareholders also voted in favour of the (i)appointment of MNP LLP, Chartered Professional Accountants, as auditorof the Company, and (ii) re-approval of the 10% “rolling” Optionand Incentive Plan (the "Incentive Plan"). The IncentivePlan was unchanged from that of the prior year which was approved bythe ("TSXV") on June 30, 2022, Approval of the IncentivePlan includes the approval off all unallocated Options, RSUs, DeferredShare Units ("DSUs"), and other contemplated forms ofincentive renumeration to participants thereunder.

Immediately following the Meeting, CharlieDavies informed the Company that he would be resigning from the Boardwith immediate effect.   Mr. Davies joined the Board as a nominee ofWaterton Precious Metals Fund II Cayman, LP (“Waterton”).  Waterton was a major shareholder of Contact Gold dating back to theCompany’s acquisition of Pony Creek in 2017, and held a directornomination right, with Mr. Davies as the Waterton employee, joiningthe Company’s board.  On April 26, 2023, Waterton divested of itsentire equity position in Contact Gold in a block trade to a number ofpurchasers, including experienced precious metals investors andcertain insiders of the Company.  Mr. Davies is stepping down as areflection of that change.  Contact Gold would like to thank Mr.Davies for his years of service to the Company and wishes him the bestin all of his endeavours.

About Contact Gold Corp’s propertyinterests

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.  The GreenSprings property is 23.2 km 2 , encompassing 3 shallow past-producing openpits and numerous targets that were not mined. The Company is operatorof Green Springs and will lead exploration under Centerra’s USD 10million earn-in.

Strategically located immediately south of Orla MiningLtd.’s Railroad-Pinion Project, on the Southern Carlin Trend (TSX:OLA), Pony Creek totals 81.7 km 2 and is 100%owned by Contact Gold.  The Company published a first-time mineralresource estimate at Pony Creek in early 2022, and expects to commencea resource expansion program later in 2023.

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

For more information, please contact:

John Wenger, Chief Financial Officer

wenger@contactgold.com

(604) 449-3361

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.

Cautionary Note RegardingForward-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 exploration activities of theCompany at the Green Springs and Pony Creek properties, the completionof the earn-in by Centerra at Green Springs, receipt of applicableregulatory approvals, planned expenditures through the remainder ofthe year, and the results of any exploration activitiesundertaken.

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: potentialliquidity issues appearing in the US banking industry, and impactsremaining from the global disruption caused by the Covid-19coronavirus outbreak ,;fluctuations in general macroeconomic conditions; fluctuations insecurities markets; fluctuations in spot and forward prices of gold,silver, base metals or certain other commodities; fluctuations incurrency markets (such as the Canadian dollar to United States dollarexchange rate); change in national and local government, legislation,taxation, controls, regulations and political or economicdevelopments; risks and hazards associated with the business ofmineral 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.

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