ELMGF - Element 79 Gold Announces 60-Day Extension to Valdo LOI

(TheNewswire)

VANCOUVER, BC / THENEWSWIRE / May 30,2023 – Element 79 Gold Corp. (CSE:ELEM)(OTC:ELMGF) (FSE: 7YS) (" Element 79 Gold ", the " Company ")announces that, further to its November 17, 2022 release announcing that the Company had entered into anon-binding letter of intent (the “Valdo LOI”) with Valdo MineralsLtd. (“Valdo”), the parties have mutually agreed to a 60-dayextension to the exclusivity period to enter into a definitiveagreement for the sale of three properties from its Battle MountainPortfolio located in the northeastern Nevada, US.

The other terms of the LOI, as announced by the Companyon November 17, 2022 , remain unchanged.

Proposed TransactionHighlights

• Valdo to acquire 100% interests and obligation in:

  • The North Mill Creek Project - comprised of 6 unpatented claims located at themargins of the Goat Window in Lander County, Nevada, an exposure oflower plate rocks beneath the Roberts Mountains Thrust, the preferredcarbonate host of Carlin-type gold deposits.

  • The Elder Creek Project - comprised of 23 unpatented claims, which coverthe historic Elder Creek open-pit mine in Lander County, Nevada,hosted in upper plate rocks where the mine area is believed torepresent leakage from the deeper lower plate of the Roberts MountainsThrust.

  • The Elephant Project - comprised of 197 claims located at the foot of the minedumps at Nevada Gold Mines' Phoenix operation hosting a coveredpediment target with various depths of cover based on the displacementof fault blocks.

• Valdo to issue 3,750,000 common shares at a deemedprice of $0.30 CAD per share representing an aggregate value of CAD1,125,000.

• According to the revised exclusivity period, thetransaction is expected to close by July 15, 2023.

“As we progressed toward the initial term of the LOI,Valdo expressed a desire for an extension as they finalize theirproject structuring and capitalization plans,” said James Tworek,Element79 Gold Corp CEO. “Our collaboration with Valdo holds greatpromise, spurred by their continued interest in how the optionedportfolio synergizes with their other regionally adjacent projects, weare confident that this extension will pave the way for a successfulclosing and strong Valdo story in the future.”

Element79 Gold’s Battle MountainPortfolio

The Battle Mountain Portfolio was originally comprisedof 15 separate projects totaling over 44,478 acres across 2,203unpatented claims in five counties: Elko County, Eureka County,Humboldt County, Lander County, and Nye County. Most of the BattleMountain Portfolio is located within the Battle Mountain Trend, withseveral projects close to globally reputable gold deposits includingNevada Gold's Cortez Mine.

The Battle Mountain Portfolio is comprised primarily ofearly-stage projects. While drilling has been completed at someprojects, such as Elder Creek (155 holes) and Clover (104 holes), manyhave only surface sampling and geophysical surveys completed. Ofparticular note are the Long Peak, Elephant, Elder Creek, North MillCreek, Clipper, Pipeline South, West Cortez, and Walti Projects, whichare interpreted to lie along the northwest trending fault that hoststhe high-grade Pipeline deposit, which is included in Nevada Gold'sCortez Mine.

Qualified Person

The technical information in this release has beenreviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director ofElement79 Gold and a "qualified person" as defined byNational Instrument 43-101.

About Element79 Gold

Element79 Gold is a mining company focused on gold,silver and associated metals and committed to maximizing shareholdervalue through responsible mining practices and sustainable developmentof its projects. Element79 Gold's main focus is on two coreproperties: developing its previously-producing, high-grade gold andsilver mine, the Lucero project located in Arequipa, Peru, with theintent to bring it back into production in the near term; and itsflagship Maverick Springs Project located in the famous gold miningdistrict of northeastern Nevada, USA, between the Elko and White PineCounties. Maverick Springs hosts a 43-101-compliant, pit-constrainedmineral resource estimate reflecting an inferred resource of 3.71million ounces of gold equivalent "AuEq" at a grade of 0.92g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date ofOctober 19, 2022. The acquisition of the Maverick Springs Project alsoincluded a portfolio of 15 properties along the Battle Mountain trendin Nevada, which are non-core to its primary business focus. InBritish Columbia, Element79 Gold has executed a Letter of Intent andfunded a drilling program to acquire a private company that holds theoption to 100% interest of the Snowbird High-Grade Gold Project, whichconsists of 10 mineral claims located in Central British Columbia,approximately 20km west of Fort St. James. The Company also has anoption to acquire a 100% interest in the Dale Property, 90 unpatentedmining claims located approximately 100 km southwest of Timmins,Ontario, Canada in the Timmins Mining Division, Dale Township. TheCompany is analyzing the non-core Nevada projects, The Dale Propertyand Snowbird Property for further merit of exploration, sale orspin-out.

For more information about the Company, please visit www.element79.gold

Contact Information:

James C. Tworek, Chief Executive OfficerE-mail : jt@element79gold.com

For investor relations inquiries,please contact:

Investor Relations Department –Dylan Anderson

Phone: +1 (613) 879-9387

E-mail: hello@element79gold.com

Cautionary Note Regarding ForwardLooking Statements

This press contains "forward?lookinginformation" and "forward-looking statements" underapplicable securities laws (collectively, "forward?lookingstatements"). These statements relate to future events or theCompany's future performance, business prospects or opportunities thatare based on forecasts of future results, estimates of amounts not yetdeterminable and assumptions of management made in light ofmanagement's experience and perception of historical trends, currentconditions and expected future developments. Forward-lookingstatements include, but are not limited to, statements with respectto: the Company's business strategy; future planning processes;exploration activities; the timing and result of explorationactivities; capital projects and exploration activities and thepossible results thereof; acquisition opportunities; and the impact ofacquisitions, if any, on the Company. Assumptions may prove to beincorrect and actual results may differ materially from thoseanticipated. Consequently, forward-looking statements cannot beguaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements asthere can be no assurance that the plans, assumptions or expectationsupon which they are placed will occur. All statements other thanstatements of historical fact may be forward?looking statements. Anystatements that express or involve discussions with respect topredictions, expectations, beliefs, plans, projections, objectives orfuture events or performance (often, but not always, using words orphrases such as "seek", "anticipate","plan", "continue", "estimate","expect", "may", "will","project", "predict", "forecast","potential", "target", "intend","could", "might", "should","believe" and similar expressions) are not statements ofhistorical fact and may be "forward?lookingstatements".

Actual results may vary from forward-lookingstatements. Forward-looking statements are subject to known andunknown risks, uncertainties and other factors that may cause actualresults to materially differ from those expressed or implied by suchforward-looking statements, including but not limited to: the durationand effects of the coronavirus and COVID-19; risks related to theintegration of acquisitions; actual results of exploration activities;conclusions of economic evaluations; changes in project parameters asplans continue to be refined; commodity prices; variations in orereserves, grade or recovery rates; actual performance of plant,equipment or processes relative to specifications and expectations;accidents; labour relations; relations with local communities; changesin national or local governments; changes in applicable legislation orapplication thereof; delays in obtaining approvals or financing or inthe completion of development or construction activities; exchangerate fluctuations; requirements for additional capital; governmentregulation; environmental risks; reclamation expenses; outcomes ofpending litigation; limitations on insurance coverage as well as thosefactors discussed in the Company's other public disclosure documents,available on www.sedar.com. Although the Company has attempted toidentify important factors that could cause actual results to differmaterially from those contained in forward-looking statements, theremay be other factors that cause results not to be as anticipated,estimated or intended. The Company believes that the expectationsreflected in these forward?looking statements are reasonable, but noassurance can be given that these expectations will prove to becorrect and such forward?looking statements included herein shouldnot be unduly relied upon. These statements speak only as of the datehereof. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements, except asrequired by applicable laws.

Neither the Canadian SecuritiesExchange nor the Market Regulator (as that term is defined in thepolicies of the Canadian Securities Exchange) accepts responsibilityfor the adequacy or accuracy of this release.

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