C:CC - Contact Gold Reports Q3 2022 Financial And Operating Results

(TheNewswire)

Vancouver, B.C. - TheNewswire - November 29, 2022 – Contact Gold Corp.(the "Company" or "Contact Gold")(TSXV: C; OTCQB:CGOLF) is pleased to announce its financial andoperating results for the three- and nine-months ended September 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.

Details of financial results as at and for the three-and nine-months ended September 30, 2022 and 2021, are described inthe unaudited 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- andnine-months ended September 30, 2022 of $0.74 million and $2.71million (2021: $0.99 million and $4.63 million), respectively, reflectprimarily (i) costs incurred for professional, legal and advisoryfees, administration & office expenditures, wages and salaries,and investor relations activities (in aggregate, $1.38 million,compared to $1.83 million for the same period in 2021), (ii)exploration and evaluation of the Company’s exploration propertyinterests ($1.26 million, compared to $2.49 million for the sameperiod in 2021), and (iii) the accounting for stock option( " Options " ) and restricted share unitvesting, inclusive of the impact of forfeiture and cancellation ofcertain Options, which resulted in a non-cash recovery against thestock-based compensation expense for the period.

Losses for the current period are lower than those ofthe prior period reflecting, in part, a reduction in the level ofexploration activities at Green Springs, and the overall reduction ofwages & salaries, general & administrative costs, and legal& advisory fees further to an ongoing effort to reducenon-exploration-related expenditures.

The Company has elected to expense explorationexpenditures as incurred.  During the nine months ended September 30,2022, exploration and evaluation expenditures were predominantlyrelated to exploration and the 2022 drill program at Green Springs. Approximately $1.23 million in expenditures had been incurredthrough September 30, 2022 for exploration at Green Springs and atPony Creek.

The Company recorded an other comprehensive gainattributable to shareholders for the three- and nine-month periodsended September 30, 2022 of $1.96 million and $2.46 million (2021:gain of $0.81 million and a gain of $0.01 million).  The othercomprehensive loss or gain in a given period reflects primarily theforeign 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).

Total assets at September 30, 2022 comprise primarily:exploration and evaluation assets of $31.26 million, and $0.43 millionin cash.  At December 31, 2021, total assets primarily comprisedexploration and evaluation assets of $28.92 million, and $2.68 millionin cash.

Total liabilities at September 30, 2022 includenon-current liabilities of $0.15 million, recorded to recognize aprovision for site reclamation (December 31, 2021: $0.14 million), ashort-term advance of $0.10 million for working capital provided by a related party, and normal coursepayables and accruals of $0.30 million (December 31, 2021: $0.31million).

Accumulated other comprehensive gain of $0.20 millionat September 30, 2022 (December 31, 2021: loss of $2.25 million) isthe aggregate foreign currency impact on the translation to Canadiandollars of the value of the Company’s U.S. entity and its portfolioof exploration properties.

Net cash operating outflows for the nine-month periodended September 30, 2022 of $2.41 million reflects primarily (i)ongoing exploration activity, (ii) investor relations and head officecosts ($0.41 million), (iii) the settlement of balances due to serviceproviders and vendors at the preceding year end, and (iv) receipt of ashort-term advance provided by an officer of the Company.  Anon-brokered private placement announced by the Company on June 21,2022 was subsequently suspended as the Company awaits improved capitalmarket conditions.

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 Southern CarlinTrend (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 TSX Venture Exchange (the "TSXV")nor its Regulation Services Provider (as that term is defined in thepolicies of the TSXV) accepts responsibility for the adequacy of thisrelease. No stock exchange, securities commission or other regulatoryauthority has approved or disapproved the information containedherein.

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 ability to raisecapital by way of private placement prior to the end of the year,planned expenditures through the remainder of the year and into 2023,and the anticipated exploration activities of the Company at GreenSprings 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.

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