Mr. John Wenger reports

CONTACT GOLD REPORTS Q3 2023 FINANCIAL AND OPERATING RESULTS

Contact Gold Corp. has released its financial and operating results for the three and nine months ended Sept. 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 which, and only upon satisfaction of the full financing commitment, Centerra has a right to acquire a 70-per-cent interest in Green Springs (the Centerra farm-out). Drilling and exploration is directed and executed by Contact Gold using funds advanced by Centerra. 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.

Recent developments:

• On Nov. 24, 2023, the company received the $175,000 (U.S.) anniversary payment due in connection with Centerra's continued participation in the earn-in on the Green Springs oxide gold project.
• Reported final drill results from the 2023 exploration program at Green Springs. Highlights of oxide gold (Au) drill results from the 2023 program at Green Springs include:
  • 1.14 grams per tonne (g/t) Au over 27.43 metres, from a depth of 16.76 metres, in drill hole X-Ray GS23-06 -- oxide, including:
    • 1.73 g/t Au over 10.67 metres -- oxide.
  • 1.97 g/t Au over 35.05 metres from a depth of 16.76 metres in drill hole X-Ray GS23-07 -- oxide, including:
    • 5.06 g/t Au over 10.67 metres -- oxide, including:
      • 6.96 g/t Au over 4.57 metres -- oxide.
  • 1.90 g/t Au over 25.91 metres from a depth of 89.92 metres in drill hole X-Ray GS23-10 -- oxide, including:
    • 2.50 g/t Au over 18.29 metres -- oxide.
  • 1.41 g/t Au over 12.19 metres from a depth of 85.34 metres in drill hole X-Ray GS23-11 -- oxide, including:
    • 2.45 g/t Au over 4.57 metres -- oxide.
  • 1.67 g/t Au over 10.67 metres from a depth of 85.34 metres in drill hole X-Ray GS23-12 -- oxide, including:
    • 2.03 g/t Au over 7.62 metres -- oxide.
  • 0.86 g/t Au over 35.05 metres from a depth of 77.72 metres in drill hole X-Ray GS23-13, including:
    • 1.22 g/t Au over 18.29 metres.
  • 0.77 g/t Au over 19.81 metres from a depth of 94.49 metres in drill hole Echo GS23-03 -- oxide.
  • 0.38 g/t Au over 39.62 metres from a depth of 83.82 metres in drill hole Echo GS23-04 -- oxide.
• Received an approved record of decision from the U.S. Forest Service Humboldt-Toiyabe National Forest on the expanded plan of operations at Green Springs that will allow Contact Gold to drill additional high-priority drill targets outside the boundary of the original plan of operations.

Selected Q2 2023 financial data

Details of financial results as at and for the three and nine months ended Sept. 30, 2023, and 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 the associated table is derived from the interim financial statements.

Losses attributable to shareholders for the nine months ended Sept. 30, 2023, of $2.42-million (2022: $2.71-million), respectively, reflect primarily: (i) a write-down of the value of the Rock Creek and Wilson Peak exploration properties of $1.6-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, $880,000, compared with $1.38-million for the same period in 2022); and (iii) exploration and evaluation of the company's exploration property interests ($0200,000, compared with $1.26-million for the same period in 2022). The amount reported for exploration and evaluation expenditures for the period is net of a recovery of cash ($2.16-million) pursuant to the terms of the Centerra farm-out, whereby the cash received from Centerra offsets the accounting for expenditures incurred.

Other comprehensive loss attributable to shareholders for the nine-month period ended Sept. 30, 2023, of $390,000 (2022: gain of $2.46-million) is primarily a reflection of the foreign currency impact arising on the carrying value of the company's United States 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 United States 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 as shown in the associated table.

Summarized balances from the statements of financial position of each period are as shown in the associated table.

Total assets at Sept. 30, 2023, comprise primarily: exploration and evaluation assets of $29.15-million and $380,000 in cash. At Dec. 31, 2022, total assets primarily comprised exploration and evaluation assets of $30.89-million and $140,000 in cash.

Total liabilities at Sept. 30, 2023, include non-current liabilities of $150,000, recorded to recognize a provision for site reclamation (Dec. 31, 2022: $150,000), normal course payables and accruals of $320,000 (Dec. 31, 2022: $640,000), settled after period-end, and a short-term loan of $100,000 (Dec. 31, 2022: $100,000).

Accumulated other comprehensive loss of $270,000 at Sept. 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 nine-month period ended Sept. 30, 2023, of $660,000 (2022: $2.40-million) include: exploration expenditures pursuant to the Centerra earn-in ($1.96-million), net of a $2.16-million recovery from Centerra; marketing and investor relations activities ($100,000), general corporate activities ($890,000), and the settlement of balances due to related parties, service providers and vendors.

About Contact Gold's property interests

Green Springs is strategically located seven kilometres immediately east of the Gold Rock project operated by Calibre Mining and 20 km southeast of its Pan mine. The Green Springs property is 23.2 square km, 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. As of the date of this news release, the company and Centerra are working to finalize and approve the program and budget for 2024 at Green Springs.

Strategically located immediately south of Orla Mining's Railroad-Pinion project, on the Southern Carlin trend, Pony Creek totals 43.8 square km 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 looks forward to undertaking a resource expansion program at a future date.

We seek Safe Harbor.