Mr. Glen Parsons reports

AWALE RESOURCES INTERSECTS NEW HIGH GRADE MINERALIZATION 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 and extension targets. Assays are reported for nine drill holes completed at the Empire Main discovery, including holes OED-031 and OEDD-32, which successfully intersected a previously untested high grade northeast-trending vein array with wider and multiple lodes of gold mineralization. Initial results have also been received from a further 43 scout holes (3,602 metres (m) of drilling) drilled over the initial three kilometres (km) of extension targets along the 20-kilometre Empire trend.

Reverse circulation (RC) drilling is continuing with only three holes to complete and, once finished, a further five diamond holes are planned to test steep-plunging mineralization at Empire Main. Following initial high-grade scout drilling intercepts at anomalies 1 and 2, company geologists are currently working on understanding the geometry of the mineralization and alteration intercepted for the next phase of drilling.

Drilling highlights -- Empire Main

OEDD-32 was drilled from northwest to southeast, successfully targeting a northeast-trending/northwest-dipping vein array, as well as the known east-west-trending vein array -- multiple lodes intercepted:

• 10 m at 1.6 grams per tonne (g/t) gold (Au) from 67 m (northern lode);
• 22 m at 3.8 g/t Au from 92 m, including one m at 44 g/t Au from 104 m, within a broader interval of 36 m at 2.7 g/t Au from 89 m;
• Seven m at 2.4 g/t Au from 136 m, within a broader interval of 12 m at 1.8 g/t Au from 131 m.

OEDD-31 was drilled from north to south between OEDD-09 and OEDD16, successfully testing for shallow northern lode, as well as postulated northwest-dipping vein array. This hole intercepted multiple gold-bearing lodes:

• 16 m at two g/t Au from 45 m (northern lode);
• 11 m at 2.5 g/t Au from 61 m, including one m at 10.4 from 74 m;
• 15 m at 1.6 g/t Au from 85 m, including one m at 9.3 from 95 m;
• Four m at 2.7 g/t Au from 118 m, including one m at 7.1 g/t Au from 120 m;
• One m at 8.8 g/t Au from 139 m.

OEDD-22 is a west stepout hole from discovery hole OEDD-1, opening the mineralized system to the northwest:

• Four metres at 3.6 g/t Au from 55 m, including one m at 8.3 g/t Au from 55 m.

OEDD-28 is 40 m downdip of OEDD-22:

• One m at 11.3 g/t Au from 109 m.

Drill intervals are reported as downhole; true widths are approximately 75 to 80 per cent of the downhole interval -- all intercepts are calculated with a 0.5-gram-per-tonne-gold trigger, including two m of internal waste; high-grade intercepts are reported as individual assays or intervals calculated at a one-gram-per-tonne trigger value.

Empire Main is a robust mineralized system; holes OEDD-31 and OEDD-32 have demonstrated the presence and importance of the postulated northeast vein array; this orientation opens the mineralization model to an additional steep southwest plunge on mineralization. Farrther to the downplunge target, hole DD-26 and DD-27 at the eastern extent of current drilling at Empire Main have revealed a rapid truncation of the mineralization and the diorite host; a northwest offset target is now being drilled to the north of these holes.

Drilling highlights -- extension target scout drilling

Results have been returned from 3,602 metres of scout drilling in 43 holes over three targets strike southeast of the Empire Main discovery. Drilling is continuing at anomaly 1. Drilling at anomalies 1 and 2 have intercepted multiple mineralized zones associated with sulphide and alteration. The campaign is showing potential mineralized trends at anomalies 1 and 2 with target geology and high-grade gold results within these trends. Awale geologists are currently working to ascertain the geometry and control of the systems at anomalies 1 and 2 preparing for the next phase of drilling.

Anomaly 1 has intercepted a deformed package of volcaniclastic and sedimentary rocks which are variably sheared and altered. Hole OEDD-57 has returned an encouraging first pass intercept of:

• OEDD-57 -- six m at 2.2 g/t Au from 38 m (including one m at five g/t Au from 39 m and one m at 5.2 g/t Au from 41 m) and two m at 1.4 g/t Au from 48 m.

These intercepts are contained within a 12-metre-wide alteration zone and holes OERC-65, OERC66 and OERC67 on a stepout line 160 metres west have intercepted similar alteration veining and sulphide to the mineralization in OERC-57.

At anomaly 2, modelled geology has been intercepted with hole OEDD-20 confirming a diorite intrusive host within a package of altered and deformed volcano sedimentary rocks and carbonaceous mudstones. Encouragingly, the alteration at the footwall contact of the diorite reflects closely of that observed at Empire Main with a seven-metre-wide deformation zone with biotite and calc-silicate alteration with minor sulphide (pyrite) and visible gold in approximately five-centimetre quartz veins. Hole OERC-48 is drilled 100 m striking southwest of the mineralization in OEDD20 and displays biotite and silica sulphide alteration along a contact between silicic volcanic rocks and has returned one g/t Au from 89 m.

Best results returned from this alteration zone include:

• OEDD-20 -- one m at one g/t Au from 66 m (within a broader intercept of 4.1 m at 0.3 g/t Au from 66 m) and one m at 4.7 g/t Au from 85 m.

Company chief executive officer Glen Parsons commented today:

"The robust nature of mineralization at the Empire discovery at Odienne continues to develop with this program further confirming the presence of a high-grade gold system. Holes from Empire Main continue to deliver high-grade gold mineralization and 22 metres at 3.8 grams gold in hole OEDD-32 complements the previously reported gold mineralization.

"Turning the rig to drill from south to north has proven very successful revealing a new north-northeast-northeast gold-mineralized vein orientation. This was tested with holes OEDD-31 and OEDD-32 which displayed visible gold and more robust and consistent mineralization than previously reported drill holes from the prospect. More excitingly the presence of this north-northeast to northeast gold-mineralized vein array opens potential for steeply southwest-plunging lodes that complement the known shallow plunges tested in this program. FIve diamond drill holes have been added to the current program to test this new gold-mineralized orientation.

"New mineralization intercepted at the anomaly 1 and anomaly 2 extension targets is particularly encouraging and the initial results form a nucleus for potential new discoveries at Empire. Observed geology and alteration in drill cuttings reflect the modelled geology from our systematic exploration work.

"At anomaly 2, OEDD-20 intercepted visible gold and grades up to 4.8 g/t gold in footwall alteration of a target diorite body similar to Empire Main. Anomaly 1 is still being drilled and hole OERC-57 has intercepted six metres at 2.2 g/t gold, including two one-metre intervals at five g/t Au and 5.2 g/t Au; six additional RC holes have been added to follow up this new mineralization.

"Further to the continued high-grade results and opening of new mineralization orientations at Empire Main, it has been pleasing to see the initial scout drilling results starting to bear fruit on the extension targets. We look forward to completion of the RC program and results flow from anomaly 1, as well as recommencing deeper diamond drilling at Empire Main. The additional holes at Empire Main are expected to be completed by late January.

"Awale is in the process of testing the first three-kilometre strike from the Empire Main discovery, a mere fraction of the over-20-kilometre-long Empire structure. Furthermore, we continue to systematically explore and extend new targets that are being generated along this exciting mineralized shear zone, as well as the greater mineralized northwest corridor within our Odienne permit.

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

Since the previous release and the election period hiatus, RC drilling recommenced in the first week of December and continues. At the time of reporting, 47 RC and four diamond holes for 4,282 m have been completed over the Empire Extension targets. Drilling continues with approximately 500 RC metres left to complete in six holes. Five additional diamond holes for approximately 1,200 metres have been planned for Empire Main and this is expected to be completed in late January. The company expects results flow to continue for the remaining RC drilling, along with auger geochemistry from Empire and the new Charger prospect.

Follow-up exploration plan at Odienne

Awale remains confident of the upside potential of the Empire structural trend and has an aggressive continuing campaign for the remainder of 2020 and Q1 2021. The near-term focus for the Odienne project is as follows:

• Testing steep plunge model for Empire Main -- approximately 1,200 m of diamond drilling;
• Detailed interpretation and understanding of the first-pass intercepts from scout drilling at anomalies 1 and 2, as well as anticipated further results from anomaly 1 -- follow up drilling;
• Test and understand potential eastern offsets from Empire Main, as well as western extension targets. A 500-metre gap exists between current drilling at Empire Main and anomaly 1 and the western extension of the Empire structure. A program of 240 auger holes for 964 m was completed on Dec. 8, 2020, as a targeting exercise next phase of drilling at Empire Main. Further to this a new parallel structural target to Empire is being auger drilled approximately three km to the north-northeast of Empire Main. This will feed into the next program scout drilling over the greater empire structure;
• Completion of auger drilling and mapping at the Charger prospect approximately three km north of Empire. The charger prospect returned up to 1,677 parts per billion (ppb) in legacy soil sampling within a 600-metre-long greater-than-100-part-per-billion anomaly. Initial mapping has revealed diorite body central to the prospect area that is bound by a package of basalts and intermediate volcaniclastics and tuffaceous rock.

Technical background

While drilling continues at the Empire East Extension targets, the diamond holes reported in this release mark the completion of this phase of drilling at Empire Main. The program was planned to test a potential shallow plunge to mineralization intercepted in the phase 1 program. Results from this program included:

• OEDD0001 -- 18.15 m at 4.9 g/t Au from 40 m downhole:
  • Including 10.4 m at 7.9 g/t Au from 40 m downhole;
• OEDD0002 -- 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 -- 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 -- 18 m at three g/t Au from 97 m downhole and two m at 15.5 g/t Au from 111 m downhole:
  • 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.

The phase program both confirmed a shallow plunge and the north drill azimuth has revealed a second vein array striking to the north-northeast/northeast conjugate to the targeted east-west gold-bearing veins. The final two holes were drilled test both the presence of an additional northern lode, the central lode and the significance of the northeast-trending vein array. These holes confirmed both the northern lode and the gold-bearing northeast array dipping to the northwest. This second vein array was not well tested by phase 1 drilling where holes were drilled parallel to this orientation. Indeed, OEDD-32 drilled perpendicular to this array has delivered the broadest continuous drill intercepts to date (36 metres at 2.7 g/t with a 0.5-gram trigger or 62 m at two g/t with a 0.2-gram-per-tonne trigger). Furthermore, this conjugate orientation opens the possibility for a steep west-plunging mineralization, additional to the flatter 25-degree to 30-degree plunge. Best intercepts are as follows:

• OEDD-24 -- 15 m at 13.1 g/t Au from 69 m, including two m at 20 g/t Au from 69 m, 7.6 m at 20.1 g/t Au from 74.7 m and one m at 129.8 g/t Au from 76 m;
• OEDD-18 -- 11 m at 4.9 g/t Au from 40 m downhole, including one m at 4.8 g/t Au and one m at 40.2 g/t Au from 40 and 41 m, respectively;
• OEDD-16 -- 17 m at 3.5 g/t Au from 86 m downhole, including one m at 11.9 g/t Au and one m at 11.7 g/t Au from 87 and 90 m respectively;
• OEDD-32 -- 10 m at 1.6 g/t Au from 67 m (northern lode):
  • Seven m at 2.4 g/t Au from 136 m;
  • 22 m at 3.8 g/t Au from 92 m and one m at 44 g/t Au from 104 m;
• OEDD0031 -- 16 m at two g/t Au from 45 m (northern lode):
  • 11 m at 2.5 g/t Au from 61 m, including one m at 10.4 from 74 m;
  • 15 m at 1.6 g/t Au from 85 m, including one m at 9.3 from 95 m.

The mineralization at Empire Main is characterized by multiphase deformation veining and alteration forming a robust high-grade gold-bearing system which now warrants deeper drilling to test a steep southwesterly plunge. The company is currently planning an additional five diamond holes for approximately 1,200 m to be completed at the end of the current drill phase.

Empire was discovered through systematic exploration by Awale, resulting in a coincident geology, gold/arsenic geochemistry and ground geophysics (IP) anomaly. The high-order soil anomalism coincided with a mapped mylonite-bearing structure that has been intruded by a later diorite body. This diorite is the host of mineralization at Empire Main. The Empire Main discovery is characterized by multiphase deformation, alteration and veining with early potassic alteration plus/minu Au and pyrite, calc silicate alteration (rare garnet, clinopyoxene and pyrrhotite), carbonate and silica sericite alteration. The abundant free gold is likely late and associated with the final silica-carbonate-sericite phase.

Extension targets

Further to the plunge targets at Empire Main, the company has near completed drilling of three higher-order (over 100 ppb) auger anomalies along strike from the discovery area. Results have been returned for anomalies 2 and 3 with partial results returned for anomaly 1 -- drilling is continuing. These initial results are exciting and at anomaly one confirm the model of a second potential diorite host.

Anomaly 1 is characterized by deformed silicic volcanic, greywacke and volcaniclastic rocks. Silica carbonate alteration associated with sulphide from 1 per cent to 3 per cent is observed at contacts between silicic volcanic rocks and the sediments. Hole OERC-57 returned six m at 2.2 g/t Au from 38 m (including one m at five g/t Au from 39 m and one m at 5.2 g/t Au from 41 m), as well as two m at 1.4 g/t Au from 48 m; these intercepts are contained withing a 12-metre-wide alteration zone. Holes OEDD-66 and OEDD-67 (results pending) on a stepout line 120 m west of OEDD-57 exhibit the same geology and alteration; an additional fence of holes has also been planned midway between these holes.

Anomaly 2 exhibits similar host rock geology to Empire Main. Pyrrhotite-chalcopyrite-pyrite are the most abundant sulphide species with rare galena associated with some 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. Results from hole OEDD-20 at this prospect returned one m at one g/t Au from 66 m (within a broader intercept of 4.1 m at 0.3 g/t Au from 66 m) and one m at 4.7 g/t Au from 85 m. The diorite and alteration zone are approximately 10 metres wide and company geologists are working toward understanding the geometry of this new discovery.

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-pyrite the main sulphide species. This is also developed with silica, at lithological contacts between fine-grained to medium-grained intermediate intrusive and volcanic rocks. This prospect returned rare over 100-part-per-billion to 200-part-per-billion intervals that do not necessarily reflect the alteration observed.

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 both RC and HQ core. HQ core is sampled as three-fourths core (approximately six kilograms per metre), with one-fourth sliver of the core sample being reserved as a library sample at the company offices. The remaining three-fourths 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 75 micron, with the remaining 50 per cent 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 over 0.2 g/t gold, the leach is recovering 95.5 per cent of all gold.

RC samples for the exploration holes are riffle split to approximately three-kilogram samples labelled, tagged and stored at company offices before collection by Intertek Ghana. After collection, samples are logged in the laboratory 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, core duplicates, crush duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis. As a further measure, all samples in potentially mineralized zones at Empire Main have routinely have a quartz wash placed between each sample to prevent any smearing of high-grade gold -- 3 per cent of these quartz wash samples are routinely analyzed, with the remainder stored with the analysis pulps.

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, 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.

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