Mr. Matthew Lennox-King of Contact Gold reports

CONTACT GOLD RECEIVES SHARES AND CASH PAYMENT FROM SHOWCASE MINERALS FOR NORTH STAR AND DIXIE FLATS OPTION

Showcase Minerals Inc. has issued 330,000 shares and paid $25,000 (U.S.) to the company to satisfy the 2024 payment related to the option agreement on Contact Gold's North Star and Dixie Flats gold projects (the Carlin projects) and Contact Gold's Woodruff gold-vanadium claims.

North Star and Dixie Flats are located on Nevada's Carlin trend, immediately east of the South Railroad development-stage project operated by Orla Mining, due south of Nevada Gold Mines' past-producing Rain and Emigrant gold mines and northeast of the company's resource-stage Pony Creek gold project.

The option agreement with Showcase was signed in January, 2021, and, if all conditions are met, will result in Showcase acquiring 100-per-cent interest in Woodruff and the Carlin projects (subject to a 0.25-per-cent net smelter returns royalty on the Dixie Flats claims payable to Contact Gold, in addition to those payable to an affiliate of Sandstorm Gold Royalties). Total share consideration payable to the company to satisfy the option agreement will result in Contact Gold holding a 5-per-cent ownership position in Showcase.

Contact Gold currently holds 555,646 shares of Showcase.

North Star and Dixie Flats

Prior to optioning the Carlin projects to Showcase, Contact Gold completed 26 line kilometres of CSAMT (controlled-source audio-frequency magnetotelluric) and gravity geophysical surveys over the projects to better define drill targets. In 2019, the company completed one drill hole at North Star, leaving the key exploration target largely untested.

Initial results reinforced management's belief in the prospectivity of the property, while the company's focus on the flagship Green Springs and Pony Creek projects meant that exploration dollars were limited for Dixie Flats, North Star and Woodruff. Interpretation of gravity data indicates that the main Emigrant/Dark Star controlling structure projects through Dixie Flats and North Star and ultimately to Orla Mining's Dark Star deposit.

Location of Dixie Flats, North Star and Pony Creek

Showcase has recently announced the completion of additional seismic surveys across the properties, disclosing that it has developed a new series of drill targets for extension of the known mineralization in the northwest portion of the Dixie Flats claims.

There are 17 historic drill holes on the Dixie Flats property, several of which intersected significant gold mineralization. Previous operators successfully intersected gold mineralization in drilling at Dixie Flats, with a top intercept of 0.23 gram per tonne gold over 23 metres at the Webb/Devils Gate contact, a key regional host horizon for gold mineralization.

The interface of the Devils Gate limestone and Webb mudstone is the primary host of mineralization at Dixie Flats. Nevada Gold Mines' nearby Emigrant mine and Rain mine hosted deposits in dissolution breccia zones at the contact between the Webb mudstone and the underlying Devils Gate limestone.

Qualified person and technical disclosure

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, vice-president, exploration, Contact Gold, who is a qualified person within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

North Star, Dixie Flats and Woodruff are early-stage exploration properties and do not contain any mineral resource estimates as defined by NI 43-101 due to insufficient exploration to date. The North Star claim block comprises 56 claims for approximately 360 hectares while Dixie Flats comprises 180 claims totalling 1,311 hectares. The information on the adjacent projects is taken from publicly available sources and is not necessarily indicative of the mineralization on the Dixie Flats or North Star properties.

About Contact Gold Corp.

Contact Gold is an exploration company focused on making district-scale gold discoveries in Nevada. Contact Gold's extensive landholdings are on the prolific Carlin and Cortez gold trends, which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 117.4 square kilometres of target-rich mineral tenure hosting numerous known gold occurrences, ranging from early to advanced exploration and current gold resources.

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