Mr. John Wenger reports

CONTACT GOLD REPORTS Q2 2023 FINANCIAL AND OPERATING RESULTS

Contact Gold Corp. has released its financial and operating results for the three and six months ended June 30, 2023.

Contact Gold is focused on advancing the Green Springs oxide gold project and the Pony Creek gold project, both of which host extensive and robust Carlin-type gold systems.

Green Springs is located on Nevada's Cortez trend, seven kilometres immediately east of the Gold Rock project operated by Calibre Mining Corp. Exploration at Green Springs is being financed through a partnership with a subsidiary of Centerra Gold Inc., pursuant to an earn-in arrangement. Pony Creek is located on the southern Carlin trend and ties on to the southern boundary of the feasibility-stage South Railroad gold project operated by Orla Mining Ltd.

Drilling at Green Springs in 2023 continues to generate high-grade, oxide gold mineralization over an increasingly large footprint that remains open in all directions. Recent results from the X-ray zone at Green Springs highlight and reinforce the near-surface opportunity at the property (see news releases dated July 27, 2023, and Aug. 17, 2023).

The 2023 exploration program at Green Springs has an approved budget of $1.85-million (U.S.) and the company, as project operator has completed 29 reverse circulation drill holes for 4,028 metres. Results from the initial 12 drill holes have been published as of the date of this news release, with 17 pending.

Selected Q2 2023 financial data

Details of financial results as at and for the three and six months ended June 30, 2023, and June 30, 2022, are described in the unaudited condensed interim consolidated financial statements and related notes thereto, as prepared in accordance with international financial reporting standards (IFRS), and the MD&A (management's discussion and analysis) for the corresponding periods, copies of which are available on SEDAR.

The selected financial data in one of the attached tables are derived from the interim financial statements. Unless otherwise stated, the information in this news release, and in the attached tables, is presented in Canadian dollars.

Losses attributable to shareholders for the six months ended June 30, 2023, of $2.24-million (2022: $1.97-million), respectively, reflect primarily: (i) a writedown of the value of the Rock Creek and Wilson Peak exploration properties of $1.60-million (2022: nil); (ii) costs incurred for professional, legal and advisory fees, administration and office expenditures, wages and salaries, and investor relations activities (in aggregate, $660,000, compared with $1.04-million for the same period in 2022); and (iii) exploration and evaluation of the company's exploration property interests ($140,000, compared with $930,000 for the same period in 2022). The amount reported for exploration and evaluation expenditures for the period is net of a recovery of cash pursuant to the terms of the Centerra farmout, whereby the cash received from Centerra offsets the accounting for expenditures incurred.

Other comprehensive gain attributable to shareholders for the six-month period ended June 30, 2023, of $640,000 (2022: gain of $490,000) is primarily a reflection of the foreign currency impact arising on the carrying value of the company's U.S. entity, which holds the exploration property portfolio, whereby a gain or loss reflects the relative value of the Canadian dollar (the company's reporting currency) compared with the U.S. dollar (the currency in which the value of the exploration property portfolio is recorded).

Details of exploration and evaluation activities incurred and expensed by Contact Gold at Green Springs, including non-cash items for each respective period, are provided in an attached table.

Summarized balances from the statements of financial position of each period are provided in an attached table.

Total assets at June 30, 2023, comprise primarily: exploration and evaluation assets of $28.54-million; and $690,000 in cash. At Dec. 31, 2022, total assets primarily comprise exploration and evaluation assets of $30.89-million and $140,000 in cash.

Total liabilities at June 30, 2023, include non-current liabilities of $180,000, recorded to recognize a provision for site reclamation a lease obligation (Dec. 31, 2022: $180,000), and normal course payables and accruals of $650,000 (Dec. 31, 2022: $640,000), settled after period-end.

Accumulated other comprehensive loss of $860,000 at June 30, 2023 (Dec. 31, 2022: $230,000) is the aggregate foreign currency impact on the translation to Canadian dollars of the value of the company's U.S. entity and its portfolio of exploration properties.

Net cash operating outflows for the six-month period ended June 30, 2023, of $310,000 (2022: $1.56-million) include: exploration expenditures ($1.25-million), net of a $1.11-million recovery from Centerra; marketing and investor relations activities ($70,000); general corporate activities ($100,000); and the settlement of balances due to related parties, service providers and vendors.

About Contact Gold Corp.

Contact Gold's Green Springs is strategically located seven kilometres immediately east of the Gold Rock project operated by Calibre Mining Corp. and 20 kilometres southeast of the Pan mine. The Green Springs property is 23.2 square kilometres, encompassing three shallow past-producing open pits and numerous targets that were not mined. The company is operator of Green Springs and will lead exploration under Centerra's $10-million (U.S.) earn-in. Strategically located immediately south of Orla Mining Ltd.'s Railroad-Pinion project, on the southern Carlin trend, Pony Creek totals 81.7 square kilometres and is 100 per cent owned by Contact Gold. The company published a first-time mineral resource estimate at Pony Creek in early 2022 and expects to commence a resource expansion program later in 2023.

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