Mr. Brian Skanderbeg reports

GFG PROVIDES UPDATE ON PRIVATE PLACEMENT OF FLOW THROUGH FINANCING

GFG Resources Inc. has provided an update on the previously announced (see news release dated Dec. 7, 2018) non-brokered private placement of flow-through (FT) common shares of the company. The company anticipates closing the financing, consisting of the sale of approximately 5.5 million FT shares at a price of 29 cents per FT share (previously referred to as tranche A FT shares) for gross proceeds of approximately $1.5-million, on or about Dec. 21, 2018. The company will be conducting the financing, consisting of the sale of approximately 1.9 million FT shares at 25 cents per FT share (previously referred to as tranche B FT shares) for gross proceeds of approximately $500,000, subsequent to the closing of the tranche A offering and anticipates closing it on or about Dec. 27, 2018.

Gross proceeds raised under the tranche A offering will be used for exploration activities at the company's Pen and Dore gold projects in Ontario that will qualify as Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)).

The tranche A offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The tranche A offering is being made by way of private placement in Canada. The securities sold will not be offered or sold in the United States and will each be subject to a hold period expiring four months and one day from their issuance.

About GFG Resources Inc.

GFG Resources is a North American precious metals exploration company focused on district-scale gold projects in Tier 1 mining jurisdictions, Ontario and Wyoming. In Ontario, the company owns 100 per cent of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins in Ontario, Canada. In Wyoming, the company controls 100 per cent of the Rattlesnake Hills gold project, a district-scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyo.

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