C:CC - Contact Gold Reports Q2 2022 Financial and Operating Results

(TheNewswire)

Vancouver, B.C. - TheNewswire - August 19, 2022 – Contact Gold Corp. (the"Company" or "Contact Gold") (TSXV:C ) ; ( OTC:CGOLF) is pleasedto announce its financial and operating results for the three- andsix-months ended June 30, 2022.

Contact Gold is focused on advancing the Green Springsand Pony Creek gold projects in Nevada, both of which host extensiveand robust Carlin Type gold systems.

Drilling at Green Springs through June 30, 2022continued to generate high-grade, oxide gold mineralization over anincreasingly large footprint that remains open in all directions. Recent results from the X-Ray Zone at Green Springs highlight thenear-surface, oxide high-grade gold opportunity at the property (seenews releases dated August 9,2022 and August 16,2022 ).   Drill results from theTango Zone remain pending.

Selected Q2 2022 financialdata

Details of financial results as at and for the three-and six-months ended June 30, 2022 and 2021, are described in theunaudited condensed interim consolidated financial statements andrelated notes thereto (the "Interim Financial Statements")as prepared in accordance with International Financial ReportingStandards ("IFRS"), and the MD&A for the correspondingperiods, 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 three- andsix-months ended June 30, 2022 of $1.15 million and $1.97 million(2021: $1.93 million and $3.64 million), respectively, reflectprimarily (i) costs incurred for professional, legal and advisoryfees, administration & office expenditures, wages and salaries,and investor relations activities (in aggregate, $1.04 million,compared to $1.34 million for the same period in 2021), and (ii)exploration and evaluation of the Company’s exploration propertyinterests ($0.93 million, compared to $2.02 million for the sameperiod in 2021), net of the accounting for certain forfeited stockoption ( " Options " )and restricted share units ( " RSUs " ),which resulted in a non-cash recovery against the stock-basedcompensation expense for the period.    The TSX Venture Exchange(the "TSXV") approved the Company’s new rolling OmnibusStock and Incentive Plan on June 30, 2022.

Losses for the current period are lower than those ofthe prior period reflecting, in part, the timing of explorationactivities at Green Springs, and the overall reduction of wages &salaries, general & administrative costs, and legal & advisoryfees further to an ongoing effort to reduce non-exploration-relatedexpenditures.

The Company has elected to expense explorationexpenditures as incurred.  During the six months ended June 30, 2022,exploration and evaluation expenditures were predominantly related toexploration and the initial 2022 drill program at Green Springs. Approximately $0.91 million in expenditures had been incurredthrough June 30, 2022 for exploration at Green Springs and at PonyCreek.

Other comprehensive gain attributable to shareholdersfor the three- and six-month period ended June 30, 2022 of $0.91million and $0.49 million (2021: loss of $0.39 million and $0.87million).  The other comprehensive loss or gain in a given periodreflects primarily the foreign currency impact arising on the carryingvalue of the Company’s U.S. entity which holds the explorationproperty portfolio, whereby a gain or loss reflects the relative valueof the Canadian dollar (the Company’s reporting currency) comparedto the United States dollar (the currency in which the value of theexploration property portfolio is recorded).

Total assets at June 30, 2022 comprise primarily:exploration and evaluation assets of $29.39 million, and $1.16 millionin cash.  At December 31, 2021, total assets primarily compriseexploration and evaluation assets of $28.92 million, and $2.68 millionin cash.

Total liabilities at June 30, 2022 include non-currentliabilities of $0.18 million, recorded to recognize a provision forsite reclamation (December 31, 2021: $0.14 million), and normal coursepayables and accruals of $0.44 million (December 31, 2021: $0.31million), settled after period end.

Accumulated other comprehensive loss of $1.76 millionat June 30, 2022 (December 31, 2021: $2.25 million) is the aggregateforeign currency impact on the translation to Canadian dollars of thevalue of the Company’s U.S. entity and its portfolio of explorationproperties.

Net cash operating outflows for the six-month periodended June 30, 2022 of $1.56 million reflects primarily (i) ongoingexploration activity, (ii) investor relations and head office costs($0.31 million), and (iii) the settlement of balances due to serviceproviders and vendors at the preceding year end.

About Contact Gold Corp’s propertyinterests

Green Springs is located near the southern end of theCortez Trend of Carlin-type gold deposits in Nevada, east of CalibreMining’s Pan Mine and Gold Rock Project (TSX: CXB), and south ofWaterton's Mount Hamilton deposit. The Green Springs property is 18.5km 2 ,encompassing 3 shallow past-producing open pits and numerous targetsthat were not mined.

Pony Creek is strategically located immediately southof Orla Mining Ltd’s ’ Railroad-Pinion Project, on the SouthernCarlin Trend (TSX: OLA), and totals 81.7 km 2 underpinned bya Carlin-type system with historic gold resources.

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 receipt ofall requisite and applicable regulatory approvals, including approvalof the TSXV and timing therefor, planned expenditures through theremainder of the year, and the anticipated exploration activities ofthe Company at Green Springs or Pony Creek.

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: impacts arisingfrom the global disruption caused by the Covid-19 coronavirusoutbreak ; fluctuations ingeneral macroeconomic conditions; fluctuations in securities markets;fluctuations in spot and forward prices of gold, silver, base metalsor certain other commodities; fluctuations in currency markets (suchas the Canadian dollar to United States dollar exchange rate); changein national and local government, legislation, taxation, controls,regulations and political or economic developments; risks and hazardsassociated with the business of mineral exploration, development andmining (including environmental hazards, industrial accidents, unusualor unexpected formations pressures, cave-ins and flooding); inabilityto obtain adequate insurance to cover risks and hazards; the presenceof laws and regulations that may impose restrictions on mining;employee relations; relationships with and claims by local communitiesand indigenous populations; availability of increasing costsassociated with mining inputs and labour; the speculative nature ofmineral exploration 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.

Copyright (c) 2022 TheNewswire - All rights reserved.