SITKF - Sitka Commences 2023 Diamond Drill Program at its RC Gold Project Yukon

(TheNewswire)

VANCOUVER, CANADA – TheNewswire - March 17, 2023: Sitka Gold Corp.(“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF) (OTCQB:SITKF) is pleased to announce it has commencedits 2023 diamond drill program of up to 10,000 metres of drilling atits RC Gold Project (“RC Gold” or the“Project”) in Yukon. This drill program will be primarilyfocused on step out drilling from the recently announced Blackjack andEiger intrusion related gold deposits which remain open in alldirections and have an initial inferred resource estimate of 1.34million ounces of gold (see news release dated January 19, 2023). The road accessible, contiguous 376 square kilometre RCGold Project is located in the Yukon’s prolific Tombstone Gold Belt(TGB), approximately 100 kilometres east of Dawson City.

“We are excited to get an earlystart on the 2023 diamond drilling program at the RC Gold Project,”stated Cor Coe, P.Geo, Director and CEO of Sitka Gold. “ The recently announced 1.34 million ounceinitial gold resource at RC Gold remains ripe for considerableexpansion and we expect the drilling planned for this year will addsignificant ounces to this mineral resource. The fact that Sitka hasdefined two gold deposits that come to surface, totalling 1,340,000ounces gold and open in all directions, with just 13,000 metres ofdrilling completed since exploration efforts began, reallydemonstrates the district-scale potential of RC Gold. With a largelyundrilled, 1.5 km mineralized corridor potentially linking thesedeposits together (see Figure 1) and several additional high priority,intrusion related gold targets yet to be tested across this 376 squarekilometre contiguous land package, we believe we have only scratchedthe surface of the world class potential this Project has to hostseveral multi-million ounce gold deposits.”

While expansion of the Blackjack and Eiger deposits will be the mainfocus of drilling efforts this year, the potential for additionaldiscoveries across the district-scale land package remains robust withseveral high priority, intrusion related gold deposit targets yet tobe tested. A 1.5 kilometre long mineralized corridor also remains openbetween the Blackjack and Eiger deposits with the potential for goldmineralization to link the Blackjack and Eiger zones together, as wellas outwardly to the east and west and to depth (see Figure 1). Withthe 2023 winter diamond drilling program underway, the Company expectsto see meaningful advancement at RC Gold over the coming months.

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Figure 1: Blackjack, Saddle and Eigerzones at the RC Gold Project

The Blackjack and Eiger zones are typified byintrusion-hosted mineralization within the 2 km x 500 metreextensional corridor (see news release dated June 13, 2022) thatprovides a structural and genetic link between the Blackjack zone andEiger zone intrusions (see Figure 2). The Blackjack and Eiger depositsremain open in all directions and have excellent potential forresource expansion. The Saddle zone, located midway between theBlackjack and Eiger is characterised by metasedimentary rocks intrudedby dykes and sills. This zone remains relatively untested but containssignificant mineralization with the potential to add additionalresources as demonstrated by drill hole DDRCCC20-01 which returned0.52 g/t gold over 84.8 m from surface and DDRCCC21-19 whichintersected 80.0 m grading 0.59 g/t gold from 48.0 m depth thatincluded 16.0 m grading 2.18 g/t gold (see news releases datedNovember 23, 2020 and January 20, 2022 respectively).

Drilling at the RC Gold project has been planned toprovide Sitka geologists with a solid database of drilling data tounderstand controls on mineralization observed in both intrusive andmetasedimentary host rocks while also providing the necessary spatialdensity to generate the initial resource estimate. Assay results fromdrilling along with structural information obtained from orientedcore, data from detailed core logging, geological mapping, reprocessedLidar data and interpretation of an airborne magnetic geophysical survey have been instrumental in forming thebasis for targeting high priority areas within the RC Gold Project,including the discovery of the Backjack and Eiger deposits. Thismethodology will continue to form the basis for future explorationwork on the RC Gold Project. The 2023 drilling program will be focusedon expansion drilling at the Blackjack and Eiger deposits and willconsist of both a winter and summer phase with up to 10,000 metres ofdrilling planned.

About the RC Gold Project

The RC Gold Project (RC Gold) consists of 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 Tombstone Gold Belt. It is the largest consolidatedland package strategically positioned mid-way between Victoria Gold'sEagle Gold Mine - Yukon’s newest gold mine which reached commercialproduction in the summer of 2020 - and Sabre Gold Mine’s BreweryCreek Gold Mine. The RC Gold Project land package comprises fiveunderlying properties, namely, the RC, Bee Bop, Mahtin, Clear Creek,and Barney Ridge properties*.

On January 19, 2023 Sitka Gold announced an InitialMineral Resource Estimate prepared in accordance with NationalInstrument 43-101 (“NI 43-101”) guidelines for the RC Gold Property of 1,340,000 ?ounces of gold (1) . The roadaccessible, pit constrained Mineral Resource is classified as inferredand is contained in two near/on-surface zones: The Blackjack and Eigerdeposits. The Mineral Resource estimate is presented in the followingtable at a base case cut-off grade of 0.25 g/t Au:

Table 1: RC Gold Inferred MineralResource Estimate

Notes

1. Mineral resource estimate prepared by Ronald G.Simpson of GeoSim Services Inc. with an effective date of January19,

2023. Mineral Resources are classified using the 2014CIM Definition Standards.

2. The cut-off grade of 0.25 g/t Au is believed toprovide a reasonable margin over operating and sustaining costs foropen-pit

mining and processing

3. Mineral resources are constrained by an optimizedpit shell using the following assumptions: US$1800/oz Au price; a45°

pit slope; assumed metallurgical recovery of 85%;mining costs of US$2.00 per tonne; processing costs of US$8.00per

tonne; G&A o f US$1.50/t.

4. Mineral resources are not mineral reserves and donot have demonstrated economic viability.

5. Totals may not sum due to rounding.

The InitialMineral Resource Estimate of 1,340,000 ounces of gold at the RC Gold Project is comprised of two deposits: theBlackjack deposit containing 900,000 ounces of gold at a grade of 0.83g/t gold and the Eiger deposit containing 440,000 ounces of gold at agrade of 0.50 g/t gold (see news release dated January 19, 2023). Bothof these deposits are at/near surface, are potentially open pitminable and amenable to heap leaching, with initial bottle roll testsindicating that the gold is not refractory and has high gold recoveries of up to94% with minimal NaCN consumption (see NewsRelease July 13, 2022).

The Blackjack and Eiger deposits are in close proximityto highway and power infrastructure, are road accessible year-round,remain open in all directions and are respectively located at thewestern and eastern end of a large, 500 metre by 2 kilometre intrusionrelated gold system that was recently discovered on the Property. Todate, just 38 diamond drill holes have been drilled into this systemfor a total of approximately 13,000 metres with results of up to 201.0 m of 1.26 g/tgold from surface, including 82.0 m of 2.04 g/t gold and 19.5 m of 4.87g/t gold at Blackjack (drill hole DDRCCC-22-040;see news release dated January 11, 2023) and 354 m of 0.41 g/t gold including 72 m of0.72 g/t gold at Eiger (drill hole DDRCCC-21-09;see news release date August 19, 2021).

Several high priority intrusion related gold targets exist at RC Goldwith nine outcropped intrusions identified to date over the 376 sq kmproperty, however Sitka’s main focus at the RC Gold Project has beenon the underlying Clear Creek Property where a large 500 metre by 2000metre intrusion related gold system covering the area over theBlackjack, Saddle and Eiger zones was identified. To date the Companyhas drilled 38 diamond drill holes into this system for a total ofapproximately 13,000 metres. This drilling culminated in the discoveryof the Blackjack and Eiger deposits with an initial inferred mineralresource estimate of 1,340,000 gold ounces (1) .

Sitka Gold inherited a wealth of historical and current data fromthese properties from work spanning the last 40 years. Recentexploration work and the compilation of historical data have 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 FlorinResources’ Florin Gold property at its northern boundary.

(1)  Simpson, R.  January 19, 2023. Clear Creek Property, RC Gold Project, NI43-101 Technical Report, Dawson Mining District, Yukon Territory.

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

Deposit Model

Exploration on the Property has mainly focused on identifying anintrusion-related gold system (“IRGS”). The property is part ofthe Tombstone Gold Belt which is the prominent host to IRGS depositswithin the Tintina Gold Province in Yukon and Alaska. Notable depositsfrom the belt include: Fort Knox Mine in Alaska with current Provenand Probable Reserves of 230 million tonnes at 0.3 g/t Au (2.471million ounces; Sims 2018) (1) ; Eagle Gold Mine with current Proven and ProbableReserves of 155 million tonnes at a diluted grade of 0.65 g/t Au atthe Eagle and Olive deposits (3.261 million ounces; Goodwin et al.2019) (2) ; the BreweryCreek deposit with current Indicated Mineral Resource of 22.2 milliontonnes at a gold grade of 1.11 g/t (0.789 million ounces; Hulse et al.2020) (3) ; the Florin Golddeposit, located adjacent to Sitka’s RC Gold project, with a currentInferred Mineral Resource of 170.99 million tonnes grading 0.45 g/t(2.47 million ounces; Simpson 2021) (4) and the AurMac Project with an InferredMineral Resource of 207.0 million tonnes grading 0.60 gram per tonnegold (3.99 million ounces; Jutras 2022) (5) .

(1)    Sims J. Fort Knox Mine Fairbanks North StarBorough, Alaska, USA National Instrument 43-101 Technical Report. June11, 2018. https://s2.q4cdn.com/496390694/files/doc_downloads/2018/Fort-Knox-June-2018-Technical-Report.pdf

(2)    Goodwin R, Gray P, Jutras M, Tang S, Wilbur S. Technical Report for the Eagle Gold Mine, Yukon Territory, Canada.JDS Energy & Mining Inc.  December 6, 2019.

https://vitgoldcorp.com/site/assets/files/6480/jds-vit-eagle-gold-ni-43-101-fs-report-20191206.pdf

(3)    Hulse D, Emanuel C, Cook C. NI43-101 TechnicalReport on Mineral Resources. Gustavson Associates. May 31, 2020.

https://www.goldenpredator.com/_resources/Brewery-Creek_NI-43-101-05OCT2020-File.pdf

(4)    Simpson R.  Florin Gold Project NI43-101Technical Report. Geosim Services Inc.  April 21, 2021. https://sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00005795&issuerType=03&projectNo=03236138&docId=4984158

(5 ) Banyan Gold News Release Dated May 17, 2022 (Technical Reportto be filed within 45 days of news release)https://www.banyangold.com/news-releases/2022/banyan-announces-4-million-ounce-gold-mineral-resource-estimate-for-the-aurmac-property-yukon-canada/

About Sitka Gold Corp.

Sitka Gold Corp. is a well-funded mineral explorationcompany headquartered in Canada. The Company is managed by a team ofexperienced industry professionals and 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 the Yukon and the Burro Creek Goldproperty in Arizona. Sitka owns a 100% interest in its Alpha Goldproperty in Nevada, its Mahtin Gold property in the Yukon and itsCoppermine River project in Nunavut.

Sitka has received all assay results from its 2022diamond drill program at its RC Gold Project in the Yukon andannounced a 43-101 compliant Initial Mineral Resource Estimate of 1,340,000 ounces ofgold (1) beginning at surface and grading 0.68 g/t (see news releasedated January 19, 2023). A resource expansion diamond drilling programhas now begun (March 2023).

Results from 2022 drilling at the Company’s AlphaGold Property in Nevada where a new Carlin-type gold system wasrecently discovered have all been received. The Company is focused onvectoring towards the high-grade core of this newly discovered system,which is located in the Cortez Trend just 40 km southeast of theCortez Mine Complex of Barrick/Newmont, and plans for a 2023 drillingprogram at Alpha are currently underway.

(1)    Simpson, R.  January 19, 2023. Clear Creek Property, RC Gold Project, NI43-101 Technical Report, Dawson Mining District, Yukon Territory.

Upcoming Events

Sitka Gold will be attending and/or presenting at thefollowing events:

• Swiss Mining Institute Conference, Zurich : March 21 - 22, 2023

  • Cor Coe (CEO and Director) and Mike Burke (VP Corporate Development) will bein attendance

• Dawson Gold Show, Dawson City, Yukon: May 19 - 20,2023

• TakeStock Calgary Capital Event ,Calgary, AB: July 5, 2023

• YMA Property Tours, Dawson City, Yukon: July 16-22,2023

• Precious Metals Summit, Beaver Creek,Colorado: September 12 - 15, 2023

All events are subject to change.

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 BOARD OF DIRECTORS OF

SITKA GOLD CORP.

“Donald Penner”

President and Director

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 andForward-Looking Statements

This news release containsforward-looking statements and forward looking information within themeaning of applicable securities laws. These statements relate tofuture events or future performance. All statements other thanstatements of historical fact may be forward-looking statements orinformation. Forward-looking statements and information are often, butnot 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 statementsand information address future events and conditions, by their verynature they involve inherent risks and uncertainties. Actual resultscould differ materially from those currently anticipated due to anumber of factors and risks. These include, but are not limited to,the expected timing and terms of the private placement, use ofproceeds, anticipated work program, required approvals in connectionwith the work program and the ability to obtain such approvals.Accordingly, readers should not place undue reliance on theforward-looking statements, timelines and information contained inthis news release. Readers are cautioned that the foregoing list offactors is not exhaustive.

The forward-looking statements andinformation contained in this news release are made as of the date ofthis news release and no undertaking is given to update publicly orrevise any forward-looking statements or information, whether as aresult of new information, future events or otherwise, unless sorequired by applicable securities laws or the CSE. The forward-lookingstatements or information contained in this news release are expresslyqualified by this cautionary statement.

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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