Mr. Glen Parsons reports

AWALE RESOURCES INTERSECTS 13.1 GRAMS PER TONNE GOLD OVER 15 METERS AT THE EMPIRE DISCOVERY, ODIENNE, COTE D'IVOIRE

Awale Resources Ltd. has released exceptional gold results from the phase 2 drill program at the Empire gold discovery. The next three holes reported in this release (OEDD-18, OEDD-19 and OEDD-24) represent stepout holes drilled strike east of last known mineralization from the discovery program.

The current diamond drill program for Empire Main is now complete with 13 holes drilled for 1,695 metres. Including the three holes in this release, five holes have now been reported, with assay pending for the remainder. Highlights from these three holes are as follows.

Highlights:

• OEDD-24 -- 15 metres at 13.1 grams per tonne gold from 69 metres, including two metres at 20 grams per tonne gold from 69 metres, 7.6 metres at 20.1 grams per tonne gold from 74.7 metres and one metre at 129.8 grams per tonne gold from 76 metres;
• OEDD-18 -- 11 metres at 4.9 grams per tonne gold from 40 metres downhole, including one metre at 4.8 grams per tonne gold and one metre at 40.2 grams per tonne gold from 40 metres and 41 metres, respectively;
• OEDD-19 -- two metres at 3.2 grams per tonne gold from 70 metres and six metres at 1.7 grams per tonne gold from 103 metres.

These high-grade assay results continue to complement the discovery drilling sections and the previously reported phase 2 program, being:

• OEDD-16 -- 17 metres at 3.5 grams per tonne gold from 86 metres downhole, including one metre at 11.9 grams per tonne gold and one metre at 11.7 grams per tonne gold from 87 metres and 90 metres, respectively (see news release dated Oct. 7, 2020).

Note: Drill intervals are reported as downhole; true widths are approximately 75 per cent to 80 per cent of the downhole interval.

Since the previous release, reverse circulation (RC) drilling over the eastern extension targets from Empire Main has progressed exceptionally well after some initial weather and drilling issues; 28 RC and four diamond holes have been completed for 2,771 metres over two of the three extension anomalies. Approximately 1,200 metres in 13 holes remain to complete the first-pass drill program over these new anomalies. The crews have been placed on standby from Oct. 25, 2020, in anticipation of the Oct. 31, 2020, election and work will recommence as soon possible after the election period. The company expects steady results flow from Empire Main and the extension targets over the ensuing weeks.

Company chief executive officer Glen Parsons commented: "More fantastic results from the phase 2 drill program at the Empire discovery: The postulated high-grade plunge is proving correct with the spectacular intercept of 15 metres at 13.1 grams gold from OEDD0024, which is a step east of known mineralization. Furthermore, OEDD0018 has reported 11 metres at 4.5 grams gold, which represents a potential second zone of mineralization that was also seen in OEDD0009 from the discovery program.

"Turning the rig to drill from south to north on this program has proven successful as our knowledge continues to grow on optimal orientation. This orientation has further revealed a new north-northeast-to-northeast gold-mineralized vein orientation. The final two holes of the diamond program (OEDD0031 and OEDD-32) are drilled from north to south and to the southeast to test this new orientation. More visible gold has been seen in these two holes than any of the previous drilling, with much of the gold being hosted in the new vein orientations. This new orientation opens interpretation to steep-plunging lodes as well as the current shallower plunge tested in this program.

"Further to the spectacular results and opening of new mineralization orientations at Empire Main, it has been pleasing to see the RC drilling gain momentum with the program almost at completion, with two of the three extension targets now drilled.

"Encouragingly, target geology has been intercepted by RC and diamond drilling at both these anomalies with similar alteration, sulphide species and host-rock geology as at Empire Main. Visible gold-bearing brittle ductile zones were logged in hole OEDD0020 at anomaly 2.

"We are excited by the continuation of geology and alteration seen in drill chips and DD core from the extension drilling and look forward to receiving results from these anomalies and potentially moving toward discovering more high-grade mineralization at the current known three-kilometre mineralized Empire target area. These three targets have potential to build significant resources at the Odienne project.

"I reiterate that we are just scratching the surface with the Empire discovery and the current footprint has tested only three kilometre strike of the greater-than-20-kilometre-long Empire structure. This will also be systematically explored and extended, with targets being generated along this exciting shear zone and mineralized system.

"The pipeline of assays from completed holes is now in motion and we look forward to reporting results as and when they are received."

Technical background

The first five holes (OEDD-16 to OEDD-19 and OEDD-24) of this program were designed to test for potential downplunge extensions to the gold mineralization from the previous discovery drill program. In drill section P1, OEDD-16 and OEDD-17 have successfully intersected target geology and alteration, and the 59-gram-metre gold intercept (defined as downhole intercept length multiplied by gold grade) in OEDD-16 conforms with the plus-48 gram-metre shallow plunge interpreted from previous drilling. OEDD-17 also intercepted target geology and alteration with visible gold but appears to have clipped the top of the mineralized plunge.

Drill section P2 (holes OEDD-18, OEDD-19 and OEDD-24), a step eastward to extend mineralization from the previous program has returned exceptional results with 15 metres at 13.1 grams per tonne gold from 69 metres in OEDD-24 and 11 metres at 4.9 grams per tonne gold in OEDD-18. These three holes have traversed expected geology, with higher grades occurring within visible-gold-bearing brittle/ductile deformation zones.

The current drilling was planned to intercept at right angles to the dominant east-west gold-bearing vein set recognized in the maiden drill program (holes drilled from north to south) and has been a success in traversing perpendicular to gold-bearing mineralization. However, the new orientation has traversed previously poorly or unrecognized north-northeast-to-northeast veins that dip to the northwest. These veins were also gold bearing. The final two holes of this diamond program (OEDD-31 and OEDD-32) were drilled from north to south or toward the southwest to test the new vein array. These holes intercepted a high density of north-to-northeast gold-bearing veins. The visible gold reported in these two holes is reported to be more abundant than previous drill holes at Empire.

This new orientation opens the geometry of mineralization to steep westerly plunges, which are likely additional to the shallow plunges tested in this program. These steep plunges will be the focus of future drilling at Empire Main. The Empire discovery is summarized in a release dated Jan. 29, 2020, along with other releases dated Nov. 19, 2019, and Dec. 23, 2019.

Further to the plunge targets at Empire Main, the company has completed drilling two of the three high-order (greater than 100 parts per billion) auger anomalies along strike from the discovery area. Each of these greater-than-100-part-per-billion 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 three targets have potential to extend mineralization at Empire by a further 1,200 metres.

Both anomaly 2 and anomaly 3 exhibit similar host-rock geology to Empire Main, with silica-sulphide veining hosted within brittle/ductile deformation of competent host rocks.

At anomaly 2, pyrrhotite, chalcopyrite and pyrite are the most abundant sulphide species with rare galena associated with visible gold. Chlorite rather than biotite is the abundant alteration mineral that is overprinted by the silica sulphide mineralization phase. This is developed as quartz veins, veinlets and stringers that form within brittle/ductile zones in a diorite host, with locally intense calc-silicate alteration proximal to the zone.

At anomaly 3, similar brittle deformation is observed in a medium-grained quartzite within clastic, fine-grained sedimentary rocks. Silica-sulphide veinlets and veins are associated with a hematite selvage that gives the rocks a pink hue with pyrrhotite, chalcopyrite and pyrite as the main sulphide species. This is also developed with silica at lithological contacts between fine- to medium-grained intermediate intrusive and volcanic rocks.

These extension targets add a potential 1,200 metres to the discovery zone. The company has completed 28 RC holes and four diamond holes for 2,771 metres of a planned 50 holes for approximately 4,500 metres over these extension targets.

The program has been suspended over the election period, and all remaining RC and diamond holes have now been submitted; the company looks forward to reporting results as they come through.

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.

Drill holes reported in this release are HQ core and have been sampled as three-quarters core (approximately six kilograms per metre) with one-quarter sliver of the core sample being reserved as a library sample at the company offices. The remaining three-quarters core samples are logged in the Intertek tracking system, weighed, dried and finely crushed to better than 70 per cent, passing a two-millimetre screen, of which 50 per cent is pulverized to 85 per cent, passing a 75-micron screen, and the remaining 50 per cent is reserved. The pulverized sample is then cyanide leached by the LeachWell method, with a further two fire assays completed on the tail samples from the leach to monitor leach efficacy. Total gold is reported from leach and fire assays; at grades of greater than 0.2 gram per tonne gold, the leach is recovering 95.5 per cent of all gold.

Blanks, core duplicates, crush 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; a selection of the quartz wash samples is also routinely analyzed.

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; he holds an economic geology degree, is a member of the Australian Institute of Geoscientists (AIG) and is a member of the Society of Economic Geologists (SEG). Mr. Chubb has 18 years of experience in international minerals exploration and mining project evaluation.

We seek Safe Harbor.