Mr. Glen Parsons reports

PHASE 2 DRILL UPDATE FOR THE EMPIRE GOLD DISCOVERY, ODIENNE, COTE D'IVOIRE

Awale Resources Ltd. has completed the first two diamond holes of its phase 2 drill program at the Empire high-grade gold discovery.

The first holes (OEDD0016 and OEDD0017) of this program were designed to test for potential down-plunge extensions to the gold mineralization in discovery holes OEDD0001 and OEDD0002. These holes have successfully intersected target geology and alteration with visible gold reported from six locations in OEDD0016 and three locations in OEDD0017. Both holes have now been logged, split, sampled and have been shipped to the laboratory for analysis, with assays expected to be returned in two to three weeks.

Downhole locations of observed gold and summary geology are depicted in a cross section. The Empire discovery is summarized in a release dated Jan. 29, 2020, along with other releases dated Nov. 19 and Dec. 23, 2019.

The company notes that visible gold is not a quantifiable indicator of tenor; it is, however, an indication of gold mineralization in these drill holes. The geology of the zones correlates with deformation zones containing visible gold mineralization in previous holes.

These two holes and the continuing diamond core drilling is testing a shallow eastward plunge to high-grade gold mineralization intercepted in the phase 1 discovery drill program. A flexure in footwall geometry is modelled to be the principle control to this mineralization, with secondary controls also being tested based on flat-dipping lineations.

Further to the plunge targets at Empire Main, the company is targeting three high-order (greater than 100 parts per billion) auger anomalies along strike from the discovery area with RC drilling (see release dated April 28, 2020). Each of these greater than 100 ppb targets are of similar size to the discovery zone at Empire Main and represent compelling targets to rapidly expand gold mineralization at the prospect. These extension targets add a potential 1,200 metres to the discovery zone. The company has planned 50 holes for 4,500 m over these extension targets.

To accelerate this program, Capital Drilling has mobilized a second drill rig so these extension targets can be drilled in tandem with the plunge test drilling at Empire discovery.

Company chief executive officer Glen Parsons commented today: "We are pleased to see the first two plunge test holes at Empire main have successfully intercepted target geology and visible gold. The company looks forward to delivering the results from these first holes in the ensuing weeks.

"We also eagerly anticipate commencing the RC program over the exciting three new extension targets, which are similar in size to the discovery zone. These exciting targets have potential to extend mineralization by a further 1,200 m. Encouragingly, the second rig will certainly help us meet our stated drilling timeline objective to ensure our exploration momentum is maintained.

"The Empire discovery and current focus is testing the initial three km strike of the greater than 20 km long Empire structure, we also look forward to extending exploration along this shear zone."

The Empire discovery is summarized in a release dated Jan. 29, 2020, along with other releases dated the Nov. 19 and Dec. 23, 2019. Selected highlights from the initial discovery drill program include:

• OEDD0001 -- the discovery hole (drill section 2):
  • 18.15 m at 4.9 grams per tonne from 40 m downhole, including 10.4 m at 7.9 g/t Au from 40 m downhole;
• OEDD0002 scissor of OEDD0001 (drill section 2):
  • 27 m at 3.1 g/t Au from 43.2 m downhole, including nine m at 5.3 g/t Au from 43.2 m downhole;
• OEDD0009 step west (drill section 2a):
  • 17 m at 2.6 g/t Au from 40 m downhole, including 2.65 m at 15.4 g/t Au from 40 m;
  • 16.74 m at 1.9 g/t Au from 74.26 m downhole, including 9.28 m at 2.7 g/t Au from 80.72 m;
  • 16 m at 1.8 g/t Au from 98 m downhole, including three m at 7.6 g/t Au from 111 m downhole;
• OERC0021 step west (drill section 2a):
  • Two m at 4.8 g/t Au from 53 m downhole;
  • 18 m at three g/t Au from 97 m downhole including two m at 15.5 g/t Au from 111 m downhole;
  • 29 m at 1.2 g/t Au from 134 m downhole, including 11 m at 2.5 g/t Au from 140 m downhole and two m at 5.6 g/t Au from 140 m downhole.

Note: True width intercepts are approximately 75 to 90 per cent of the reported downhole interval. The broad intercepts are calculated at a 0.2 g/t Au trigger with included intercepts calculated at a one g/t Au trigger. All calculated intercepts include three m of internal waste.

Quality control and assurance

Analytical work for drill core and RC percussion samples is being carried out at the independent Intertek Laboratories Ghana Ltd., an ISO 17025 certified laboratory. Samples are stored at the company's field camps and put into sealed bags; they are stored securely until collected by Intertek for transportation to Ghana. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70 per cent, passing a two-millimetre screen. A split of up to 1,000 grams is taken and pulverized to better than 85 per cent, passing a 75-micron screen, and a 50-gram split is analyzed by fire assay with an AAS finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis. Due to the presence of free gold, the lab was requested to run a quartz wash between each sample during preparation. Samples that have returned more than one g/t Au have been screen fire assayed.

Screen fire assay involves screening a nominal one-kilogram sample and firing the entire coarse fraction, including the screen cloth. Duplicate assays are carried out on the undersize fraction, which is more reproducible due to the smaller gold particle sizes. The total gold content is calculated as a weighted mean of the measured grades of the two screen fractions.

Qualified person

The technical and scientific information contained in this news release has been reviewed and approved for release by Andrew Chubb, the company's qualified person as defined by National Instrument 43-101. Mr. Chubb is the company's chief operating officer and holds an economic geology degree, is a member of the Australian Institute of Geoscientists, and is a member of the Society of Economic Geologists. Mr. Chubb has 18 years of experience in international minerals exploration and mining project evaluation.

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