C - Contact Gold Reports Q2 2023 Financial and Operating Results

(TheNewswire)

Vancouver, BC - TheNewswire - August 28, 2023 - Contact Gold Corp. (the "Company" or "ContactGold")(TSXV:C ) ( OTC:CGOLF) is pleasedto announce its financial and operating results for the three- andsix-months ended June 30, 2023.

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).

Drilling at Green Springs in 2023 continues to generatehigh-grade, oxide gold mineralization over an increasingly largefootprint that remains open in all directions.  Recent results fromthe X-Ray Zone at Green Springs highlight and reinforce thenear-surface opportunity at the property (see releases dated July 27,2023 and August 17,2023 ).

The 2023 exploration program at Green Springs has anapproved budget of USD 1.85 million and the Company, as projectoperator has completed 29 reverse circulation drill holes for 4,028metres.  Results from the initial 12 drill holes have been publishedas of the date of this news release, with 17 pending.

Selected Q2 2023 financialdata

Details of financial results as at and for the three-and six-months ended June 30, 2023 and 2022, 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 six-monthsended June 30, 2023 of $2.24 million (2022: $1.97 million),respectively, reflect primarily i) a write-down of the value of theRock Creek and Wilson Peak exploration properties of $1.60 million(2022: ); ii) costs incurred for professional, legal and advisoryfees, administration & office expenditures, wages and salaries,and investor relations activities (in aggregate, $0.66 million,compared to $1.04 million for the same period in 2022), and iii)exploration and evaluation of the Company’s exploration propertyinterests ($0.14 million, compared to $0.93 million for the sameperiod in 2022). The amount reported for exploration and evaluationexpenditures for the period is net of a recovery of cash pursuant tothe terms of the Centerra Farm-out, whereby the cash received fromCenterra offsets the accounting for expenditures incurred.

Other comprehensive gain attributable to shareholdersfor the six-month period ended June 30, 2023 of $0.64 million (2022:gain of $0.49 million) is primarily a reflection of the foreigncurrency impact arising on the carrying value of the Company’s U.S.entity which holds the exploration property portfolio, whereby a gainor loss reflects the relative value of the Canadian dollar (theCompany’s reporting currency) compared to the United States dollar(the currency in which the value of the exploration property portfoliois recorded).

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

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

Total assets at June 30, 2023 comprise primarily:exploration and evaluation assets of $28.54 million, and $0.69 millionin cash.  At December 31, 2022, total assets primarily compriseexploration and evaluation assets of $30.89 million, and $0.14 millionin cash.

Total liabilities at June 30, 2023 include non-currentliabilities of $0.18 million, recorded to recognize a provision forsite reclamation a lease obligation (December 31, 2022: $0.18million), and normal course payables and accruals of $0.65 million(December 31, 2022: $0.64 million), settled after period end.

Accumulated other comprehensive loss of $0.86 millionat June 30, 2023 (December 31, 2022: $0.23 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, 2023, of $0.31 million (2022: $1.56 million) includeexploration expenditures ($1.25 million), net of a $1.11 millionrecovery from Centerra; marketing and investor relations activities($0.07 million), general corporate activities ($0.10 million), and thesettlement of balances due to related parties, service providers andvendors.

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", "isexpected", "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: 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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