Mr. Craig Lindsay reports

OTIS PROVIDES KILGORE PERMITTING UPDATE

The U.S. Forest Service (the USFS), as part of its continuing agency review process, has issued a notice for a 30-day public comment period on the proposed plan of operation for a significantly expanded exploration program at Otis Gold Corp.'s Kilgore project, Clark county, Idaho (see Otis news release dated Oct. 23, 2017). The USFS will utilize any comments received to assist in guiding the completion of an environmental assessment and draft record of decision. The public will then have a further 45-day period to comment on the record of decision, following which the USFS will work to resolve any outstanding issues prior to issuing a final decision notice. Otis personnel and consultants are actively supporting the USFS in this review process.

Craig Lindsay, Otis president and chief executive officer, stated: "The initial public comment period is an important part of the permitting process, and we are pleased the USFS is working within our planned timelines for the approval of our new plan of operation. We have been operating in Idaho since 2008, and remain committed to continuing our policy of utilizing best practices in the conduct of all our exploration programs."

About the Kilgore project

The Kilgore project contains a current National Instrument 43-101 (dated Sept. 12, 2012) indicated resource of 520,000 ounces Au in 27.4 million tonnes at a grade of 0.59 gram per tonne Au and an inferred resource of 300,000 oz Au in 20.2 million tonnes at a grade of 0.46 g/t Au. The deposit is part of an extensive low-sulphidation quartz-adularia epithermal hydrothermal system hosted in Tertiary volcanic rocks and an underlying sedimentary sequence that is Late Cretaceous in age. Gold mineralization is of the traditional disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada. The preparation of an updated NI 43-101 compliant resource calculation is continuing and will include drilling completed in 2015, 2016 and 2017. This resource update will be released when available.

About the company

Otis is a resource company focused on the acquisition, exploration and development of precious metal deposits in Idaho, United States. Otis is currently developing its flagship property, the Kilgore project, located in Clark county, Idaho, and the Oakley project, located in Cassia county, Idaho.