SITKF - Sitka Announces Final Drill Results and Summarizes 2020 Exploration Program at its RC Gold Project Yukon

(TheNewswire)

VANCOUVER, CANADA - TheNewswire - December 16,2020 - Sitka Gold Corp. (“Sitka” or the “Company”) (CSE:SIG)(C NSX :SIG. CN ) (FSE:1RF) is pleased to announce it has now received all the assayresults from drilling, trenching and soil sampling at its district scale, contiguous 376 square kilometre RCGold Project in Yukon (“RC Gold” or the “Project”). A total ofsix diamond drill holes totalling approximately 1500 metres werecompleted on the Project this year testing high priority targets overapproximately 10 kilometres (Figure 1). 497 soil samples, 20 rocksamples, 140 metres of trenching and a 42 square kilometre LiDARairborne survey were also completed on the Project.

Highlights from diamond drilling include*:

DDRCCC-20-001:

• • - 18.0 metres of .90 g/tgold from 3.0 to 21.0 metres

    - 13.6 metres of1.63 g/t gold from 72.1 to 85.7 metresand

    - 18.0 metres of1.34 g/t gold from 69.0 to 87.0 metres and

DDRCCC-20-002:

• • - 231.0 metres of0.61 g/t gold from 65.0 to 296.0 metres and

    - 100.8 metres of0.82 g/t gold from 156.4 to 257.2 metresand

    - 2.0 metres of16.10 g/t gold from 294.0 to 296.0 metres

DDRCCC20-003:

• • - 38.0 metres of0.67 g/t gold from 27.0 metres to 65.0 metresand

    - 57.5 metres of0.50 g/t gold from 243.0 metres to 300.5 metresincluding

• • - 11. 6 metres of 1.20 g/tgold from 251.0 metres to 262.6 metresand

    - 0.9 metres of9.57 g/t gold from 251.0 metres to 251.9metres

DDRCCC20-004:

• • - 139.1 metres of0.61 g/t gold from 131.9 metres to 271.0 metresin including:

    - 59.0 metres of0.88 g/t gold from 212.0 to 271.0 metres and

    - 37.0 metres of1.05 g/t gold from 234.0 to 271.0 metresand

    - 6.6 metres of1.27 g/t gold from 131.9 to 138.5 metres

DDRCCC20-006:

• • - 1.2 metres of2.47 g/t gold and 23.2 g/t silver from 142.1metres to 143.3 metres

*See Table 1.

“The Company’s first drill program at RC Gold was ahuge success and resulted in the discovery of a large, robustintrusion related gold system”, stated Cor Coe, CEO and Director ofSitka. “These exceptional drill results, including 100.8 metres of 0.82 g/t gold , that also ended in 16.1 g/t gold over 2.0metres, demonstrates the enormous potentialpresent at the Saddle-Eiger Zones and confirms that the area hostssignificant gold mineralization, open both laterally and at depth,within a broad gold-in-soil anomaly that is over 2 kilometres inlength (see news release dated November 23, 2020). The intercepts andgrades we are discovering in this area are quite compelling when youconsider Victoria Gold’s producing Eagle Gold mine, located just40km east of our claim block, has a resource grade of 0.63 g/t gold.We believe the results from these inaugural drill holes at theSaddle-Eiger Zones reflect the grades and scale necessary for hostingan economic gold deposit. Trenching and drilling conducted on otherareas of the district scale property also returned inaugural goldresults with drillhole DDRCRC20-006 returning 2.47 g/t gold and 23.2 g/tsilver over 1.2metres at the Big Creek Zone and trench BR20-01returning 7.0 metres of 0.65g/t Au in a large >100ppb gold-in-soilanomaly at Barney Ridge (Figure 1). We arelooking forward to a much more aggressive drill program in 2021 tofollow up on the important gold discovery identified at theSaddle-Eiger Zones, as well as continuing exploration efforts at othertarget areas within the district scale property, including followingup on the trenching results at Barney Ridge and the drill results atthe Big Creek Zone.”

Sitka’s first ever drill campaign at RC Gold testedfour targets over a distance of approximately 10 kilometres within amassive 376 square kilometre land package that had never been drilledbefore or where previous drilling had been unsuccessful in reachingtarget depth (see Figure 1). The campaign was successful inintersecting significant gold mineralization within an intrusionrelated gold system environment in all four drill holes completedwithin the Saddle-Eiger Zone area and returned significant goldmineralization in drilling at the Big Creek Zone 6 kilometresaway.

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Figure 1: RC GoldProject 2020 Work Locations

The first four drill holes (DDRCCC-20-001 toDDRCCC-20-004) at the Saddle-Eiger Zones were strategically positionedto test the large, overlying >100ppb to >500 ppb gold-in-soilgeochemical anomaly that stretches over an approximate 2 kilometre x500 metre area (Figure 2). DDRCCC-20-001 and 20-002 were locatedapproximately 1240 metres and 1830 metres respectively to the west ofDDRCCC-20-004 along the trend of this large gold anomaly. All fourdiamond drill holes collared over this 2 kilometre distance returnedexceptionally long intersections of up to 100.8 metres of 0.82 g/t gold , as well as high grade intervals of up to 16.1 g/t gold over 2.0 metres (seeTable 1 below) and straddle a lateral width of 300 metres ofpersistent gold values as demonstrated in holes DDRC2020-003 AND 004.The results from these four drill holes demonstrate the potential sizeand robust nature of this mineralized gold zone and solidify Sitka’sbelief that the RC Gold Project is an incredibly fertile land packagecapable of hosting several intrusion related gold deposits along withhigh-grade vein and breccia hosted gold. Sitka is planning a muchlarger diamond drill program to follow up on these results in the 2021field season.

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Figure 2: 2020 Drillhole Plan Map atthe Saddle-Eiger Zones

The Company identified the Saddle-Eiger Zones, whichcontains a large >500 ppb gold-in-soil anomaly, as a priority drilltarget area at the RC Gold Project and submitted eleven rock grab andchip surface samples for rush analysis while drilling was underway. The samples returned values ranging from 1.56 g/t gold to 27.8 g/tgold (see news release dated September 8, 2020) and identified astrong correlation between high grade gold and bismuth.

DDRCCC-20-001 (results previously announced - see newsrelease November 23, 2020) was drilled to test mineralization reportedin historical trenches, and a gold-in-soil anomaly at the Saddle zone.The hole encountered a thick package of hornfelsed metasediments and aquartz monzonite intrusion interpreted by Company geologists to be asill. Significant quartz-sulphide sheeted veins were recorded withinthe metasediment package in the hanging wall of the intrusive sill,and in the intrusive sill itself.

DDRCCC-20-002 (results previously announced - see newsrelease November 23, 2020) was drilled 625 meters west of hole 20-001and collared on the margin of the Saddle intrusive stock. The drillhole intersected quartz monzonite, belonging to theSaddle Stock Unit, for nearly the entire length of the hole except for a short section of metasediments near thebottom. Mineralization consisted of sheetedquartz-sulphide veins, and notably an interval of pegmatite andmassive arsenopyrite veins at the bottom of the hole which returned16.1 g/t Au over 2.0 meters between 294.0 and 296.0 meters depth.High-grade gold values throughout the drill holes were found tocoincide with higher bismuth values.

DDRCCC-20-003 (results previously announced - see newsrelease dated October 15, 2020) was collared on the margin of theEiger stock and drilled to the northwest to intersect at depthnumerous quartz-sulphide veins sampled at surface which returnedvalues up to 27.8 g/t Au from select grab samples obtained at thebeginning of the drill program (see news release dated September 8,2020). The hole encountered intrusive rocks of the Eiger stockmineralized with sheeted quartz-sulphide veins for its entire length.Mineralization consisted of quartz veins containing pyrite,arsenopyrite and bismuthinite, and massive arsenopyrite veins. Visible gold with bismuthinite was also observedin DDRCCC-20-003 during logging and was confirmed by assay results.The correlation of gold and bismuth in intrusion related gold systemsis a characteristic feature of deeply formed intrusion-proximal golddeposits and is present at the nearby Eagle Gold mine and at the FortKnox gold mine where it indicates the presence of fine grained (on theorder of 100 microns) free gold (Baker et al., 2005). Sheeted quartzveins mineralized with variable amounts of arsenopyrite, pyrite,chalcopyrite and bismuthinite were encountered throughout the entirelength of drillhole DDRCCC-20-003 below the surface projection wherethe reported samples were taken.

DDRCCC-20-004 (results previously announced - see newsrelease dated October 15, 2020) was collared approximately 100 metersnorth of DDRCCC-20-003 and drilled to the south.  The hole wasplanned to test below mineralization reported from historical trenchesand to test the margin of the intrusive stock and the adjoininghornfelsed metasedimentary unit.  The hole encountered mineralizedsheeted veins throughout its entire length, and a notable increase ingrade was observed in the hornfelsed metasediment unit adjacent to theEiger stock.

DDRCCC-20-005 was drilled at an azimuth of 360 degreesand a dip of -45 degrees for a total depth of 173 metres to test aseparate target at the FAR Grid Zone located approximately 6 kmssoutheast of DDRCCC-20-004 (see Figure 1). This was the first drillhole to test a broad gold geochemical anomaly outlined from previousexploration work conducted over the area. The hole encounteredhornfelsed metasedimentary units throughout its entire lengthmineralized with a sporadic low density distribution of sheeted-stylequartz veins associated with anomalous gold values.

DDRCCC-20-006 was drilled at an azimuth of 35 degreesand a dip of -45 degrees for a total depth of 221 metres to testanother target at the Big Creek Zone located approximately 2kilometres southeast of DDRCCC-20-004 (see Figure 1). This was thefirst drill hole to test a broad gold geochemical anomaly outlinedfrom previous exploration work conducted over the area. The hole wascollared and remained in intrusive diorite of the Big Creek Stock forits entire length.  Numerous zones consisting of sheeted-style quartzveins returned anomalous gold values, and a significantquartz-arsenopyrite- tourmaline vein wasintersected between 142.1 metres and 143.3 metres returning 2.47 g/t gold and 23.2 g/tsilver over 1.2 metres .

Table 1: RC Gold Project DrillResults – Saddle-Eiger Zone

* Intervals are drilled corelength, as insufficient drilling has been undertaken to determine truewidths at this time.

Cross-sections of these drillholes will be madeavailable on the Company’s website ( www.sitkagoldcorp.com ).

As part of the 2020 exploration program at the RCProject, a total of 140 metres of trenching was complete in twotrenches over a high definition gold-in-soil anomaly at Barney Ridge(Figure 1). Results included 7.0 metres at 0.65 g/t Au . This samplingrepresents trenching conducted perpendicular to the generalmineralized sheeted vein structures in the area which are hosted in ahornfelsed metasedimentary unit. This is a new zone that has not hadany previous trenching and is a drill target for further explorationin 2021.

A total of 497 soil samples werealso completed during the 2020 exploration season. Analytical resultsof the soil samples significantly extended and infilled existinggold-in-soil anomalies at the RC Gold Project. Rock samples alsoverified significant gold mineralization on surface, returning up to 27.8 g/t Au from select grab samples (see news release dated September8, 2020).

LiDAR interpretation from this season’s 42 squarekilometres LiDAR survey has begun and is anticipated to assist infuture drill target selection by identifying areas with a potentialfor a high density of structures and intersections, including overthe newly discovered Saddle-Eiger Zone gold corridor.

About the RC Gold Project

The RC Gold Project is a 376 square kilometrecontiguous district scale land package located in the newly roadaccessible Clear Creek, Big Creek and Sprague Creek districts in theheart of Yukon's Tintina Gold Belt and within the Tombstone Gold Belt.It is the largest consolidated land package strategically positionedmid-way between Victoria Gold's Eagle Gold Mine, Canada’s newestgold mine which just reach commercial production earlier this summer,and Golden Predator's Brewery Creek Gold Mine, which recently receivedGovernment and First Nation’s support for re-starting production.The RC Gold Project land package is comprised of five underlyingmining properties, namely; the RC, Bee Bop, Mahtin, Clear Creek andBarney Ridge Properties*. ?

Sitka Gold has inherited a wealth of historical andcurrent data from these properties that span the last 40 years. Recentexploration work and the compilation of historical data has definedseveral mineralized zones with both bulk tonnage, intrusion-relatedgold deposit targets and high-grade, vein and breccia hosted goldtargets. The RC Gold Project also has a common border with VictoriaGold’s Clear Creek property at its western boundary and AM Gold’sRed Mountain property at its northern boundary.

*For more detailed information on the underlyingproperties please visit our website at www.sitkagoldcorp.com .

Deposit Model

Exploration on the Property has predominately beenfocused on identifying an intrusion related gold system (“IRGS”). The property is part of the Tombstone Gold Belt which is theprominent host to IRGS deposits within the Tintina Gold Province inYukon and Alaska. Notable deposits from the belt include: Fort Knoxmine in Alaska with current reserves of 282 million tonnes at 0.37 g/tAu (3.4 million ounces, not including 7.5 million ounces of pastproduction; Fairbanks Gold Mining Inc.); Eagle Gold mine with 155million tonnes at a diluted grade of 0.65 g/t Au (3.26 million ounces;Victoria Gold Corp., 2020); the Brewery Creek epizonal deposit with17.17 million tonnes at a gold grade of 1.45 g/t (0.726 millionounces; Barr, 2013); and the Red Mountain gold deposit, locatedadjacent to Sitka’s RC Gold project, with 127 million tonnes grading0.48 g/t (1.95 million ounces; AM Gold Corp.; Cole, 2012)*.

*The disclosure above is strictly for deposit modelcomparisons and the mineralization hosted on these properties is notindicative of mineralization hosted on the Company’sproperty.

(1) O’Brien, E. and Kreft, B., (2010): 2010 DiamondDrilling Program Clear Creek Property

Analysis and QA/QC

Analytical work was carried out by Bureau Veritas Labsfor diamond drill holes DDRC20-001 and 002 and all soil samples.  Thesample preparation took place in Whitehorse, YT and the analyses werecompleted in Vancouver, BC.  Each sample was assayed for Gold by 50gram fire assay FA450 with over-limits re-analyzed gravimetrically. Additionally, each sample was analysed by ICP ES-MS for a suite of 36elements.

Analytical work was carried out by ALS Global Labs fordiamond drill holes DDRC20-003 to 006 and all rock samples.  Thesample preparation took place in Whitehorse, YT and the analyses werecompleted in Vancouver, BC.  Each sample was assayed for Gold by 30gram fire assay Au-AA25 with over-limits re-analyzedgravimetrically.  Additionally, each sample was analysed by ICPME-MS41 for a suite of 51 elements.

The Company has a rigorous Quality Assurance/Quality Control (QA/QC)program in place consistent with NI 43-101 and industry best practicesin addition to QA/QC procedures at the lab.  Each batch of 20 samplescontains one certified Standard Reference Material and one Blank ofknown unmineralized material.

About Sitka Gold Corp.

Sitka Gold Corp. is a mineral exploration companyheadquartered in Canada and managed by a team of experienced miningindustry professionals. The Company is focused on exploring foreconomically viable mineral deposits with its primary emphasis ongold, silver and copper mineral properties of merit. Sitka currentlyhas an option to acquire a 100% interest in the RC, Barney Ridge,Clear Creek and OGI properties in Yukon and the Burro Creek Goldproperty in Arizona. Sitka owns a 100% interest in its Alpha Goldproperty in Nevada, it’s Mahtin Gold property in the Yukon andit’s Coppermine River project in Nunavut. Directors and Managementown approximately 15% of the outstanding shares of Sitka Gold Corp., asolid indication of their alignment with shareholders’interests.

The scientific and technical content of this newsrelease has been reviewed and approved by Cor Coe, P.Geo., Directorand CEO of the Company, and a Qualified Person (QP) as defined byNational Instrument 43-101.

ON BEHALF OF THE BOARDOF DIRECTORS OF

SITKA GOLD CORP.

“ DonaldPenner ”

President andDirector

For more information contact:

Donald Penner

President & Director

778-212-1950

dpenner@sitkagoldcorp.com

or

Cor Coe

CEO & Director

604-817-4753

ccoe@sitkagoldcorp.com

Cautionary and Forward-LookingStatements

This news release containsforward ? looking statements and forward ? looking information within the meaning of applicable securitieslaws. These statements relate to future events or future performance.All statements other than statements of historical fact may beforward ? looking statements or information.Forward ? looking statements and information areoften, but not always, identified by the use of words such as“appear”, “seek”, “anticipate”, “plan”,“continue”, “estimate”, “approximate”, “expect”,“may”, “will”, “project”, “predict”, “potential”,“targeting”, “intend”, “could”, “might”, “should”,“believe”, “would” and similar expressions.

Forward-looking statements andinformation are provided for the purpose of providing informationabout the current expectations and plans of management of the Companyrelating to the future. Readers are cautioned that reliance on suchstatements and information may not be appropriate for other purposes,such as making investment decisions. Since forward ? looking statements and information address future events andconditions, by their very nature they involve inherent risks anduncertainties. Actual results could differ materially from thosecurrently anticipated due to a number of factors and risks. Theseinclude, but are not limited to, the expected timing and terms of theprivate placement, use of proceeds, anticipated work program, requiredapprovals in connection with the work program and the ability toobtain such approvals. Accordingly, readers should not place unduereliance on the forward ? looking statements,timelines and information contained in this news release. Readers arecautioned that the foregoing list of factors is not exhaustive.

The forward ? looking statements and information contained in this news releaseare made as of the date of this news release and no undertaking isgiven to update publicly or revise any forward ? looking statements orinformation, whether as a result of new information, future events orotherwise, unless so required by applicable securities laws or theCSE. The forward-looking statements or information contained in thisnews release are expressly qualified by this cautionarystatement.

Neither the CSE nor its RegulationServices Provider (as that term is defined in the policies of the CSE)accepts responsibility for the adequacy or accuracy of this release.No stock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.

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