Mr. Steve Low reports

GOGOLD ACCELERATES ACQUISITION OF LOS RICOS PROPERTY

GoGold Resources Inc. has entered into various agreements to accelerate the acquisition of the 29 concessions that comprise the Los Ricos property in Jalisco, Mexico, from private Mexican owners. The concession agreements replace the option agreement GoGold had for the Los Ricos property and save GoGold $5.4-million (U.S.). All monetary values in this news release are in United States dollars unless otherwise noted.

Los Ricos property acquisition

With the signing of the concession agreements, GoGold is required to make payments as follows:

1. $500,000 in cash upon signing;
2. $3.22-million in cash, paid in instalments over 24 months;
3. 9,046,968 GoGold common shares to be delivered in equal numbers over 24 months.

Upon signing the concession agreements, five of the 29 concessions will be transferred to the company, with the remaining 24 concessions transferred at a rate of five concessions every five months. The first five acquired concessions is where GoGold is conducting its current drill program. Total consideration for the acquisition is $7.1-million based on the company's closing share price on Aug. 21, 2019.

In conjunction with the signing of the concession agreements, the option agreement previously entered into by the company to acquire the 29 concessions at Los Ricos (see press release dated March 26, 2019) has been terminated. The terminated option agreement had provided the company exclusive exploration rights at Los Ricos for a five-year term for $1.5-million, with the option to acquire the concessions for a lump sum payment of $11-million for a total purchase price of $12.5-million. Also, pursuant to the terminated option agreement, the private Mexican owners would retain a 2-per-cent net smelter return royalty (NSR) on five of the 29 concessions at Los Ricos. Pursuant to the concession agreements, the 29 concessions at Los Ricos can now be purchased by GoGold for $7.1-million dollars in cash and share consideration divided over the next 24 months, which represents a $5.4-million discount.

Royalty purchase

In addition to the concession agreements, the company has entered into an agreement to acquire the existing 2-per-cent NSR for the Los Ricos property for payments as follows:

1. $1-million in cash; paid in equal instalments over 36 months;
2. 4,875,012 GoGold common shares to be delivered in equal numbers over an 18-month period.

Brad Langille, president and chief executive officer, said: "With the success we've seen with our drilling, the time is right to acquire ownership of the Los Ricos concessions and royalty. Our track record of developing assets and monetizing royalties, like our Santa Gertrudis sale, should increase shareholder value and provide future financing optionality from the royalty."

Los Ricos drill program

The company started a 10,000-metre diamond drilling program of HQ-size core in conjunction with a field program of geological mapping, sampling and trenching at Los Ricos in March, 2019. Currently, 44 holes totalling 6,891 metres of HQ-size drill core have been completed, with assayed results received and reported for 26 drill holes. The program has focused on testing the top 200 metres of the mineralized zone to determine the potential for surface mining. This work includes twinning selected historical RC drill holes, completing new holes on 25-metre-spaced infill sections, completing new deeper holes downdip beneath the historical RC drill holes, testing the strike extension of the deposit to the north of the underground workings and stepping out 1,500 metres to the south where the company had success at initial greenfield exploration trenching. The attached table shows some highlights of GoGold's drill results to date at Los Ricos.

Hole ID          From          To   Length       Au          Ag       AuEq
                   (m)         (m)      (m)    (g/t)       (g/t)      (g/t)

LRGG-19-0013     71.0       106.5     35.5     1.24       284.7       5.04 
LRGG-19-0034    145.0       165.4     20.4     2.21       318.7       6.45 
LRGG-19-0085    109.4       131.7     22.4     4.13       182.1       6.55 
LRGG-19-0096     34.5        55.7     21.2     7.66     1,270.2      24.60
LRGG-19-0227    170.4       193.7     23.3     1.78       201.5       4.47 

Parral update

Parral continues to perform well and is on track to set another record production quarter for the quarter ending Sept. 30, 2019. The SART project is on schedule and, once this is in operation in early 2020, the company anticipates significant cost savings and cash inflows from liberated cyanide and copper that is currently in solution.

The acquisition of the concessions and NSR is subject to final TSX acceptance.

Mr. David Duncan, professional geoscientist, is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.

About GoGold Resources Inc.

GoGold is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high-quality projects in Mexico.

We seek Safe Harbor.