Mr. Larry Nagy reports

DAMARA ANNOUNCES FINANCING FOR UP TO $250,000

Damara Gold Corp. will conduct a non-brokered private placement for up to 8,333,333 units of the company at a price of three cents per unit for gross proceeds of up to $250,000.

Each unit will consist of one common share in the capital of the company and one-half of one warrant. Each warrant will entitle the holder to purchase one additional common share in the capital of the company at a price of 10 cents for 24 months from closing.

The company may pay finders' fees of 5 per cent in cash and 5 per cent in finders' warrants. Each finder's warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 10 cents for 24 months from closing on the same terms as the warrants.

All securities issued pursuant to the offering are subject to a statutory four-month-and-one-day hold period from the date of closing.

It is anticipated 75 per cent of the proceeds will be used for exploration expenditures related to the Placer Mountain project, located near Princeton, B.C., 10 per cent will be used for management fees for officers of the company, and 15 per cent will be used to provide working capital and general corporate purposes.

The exploration program will include the continuation of trenching and channel sampling on the 1.5-kilometre-by-600-metre gold oil geochem anomaly at the Kodiak zone, where prospecting completed in 2020 had located several areas with float samples assaying up to 70 grams per tonne (g/t) gold. Due to the excessive rain encountered in the 2021 field season, these target areas, which were located in topographically low areas, could not be accessed by back hoe at the time. It is anticipated that chip sampling of bed rock exposed by trenching this fall could identify gold-bearing structures that, elsewhere on this project, have already shown significant gold and silver intersections.

Qualified person

Dr. Gerald G. Carlson, PhD, PEng, technical adviser to the company, is the qualified person, as defined by National Instrument 43-101, who has reviewed and approved the technical data in this news release.

About Damara Gold Corp.

Damara is a TSX Venture Exchange-listed mineral exploration company actively focused on the exploration of the Placer Mountain gold property, located in Princeton, B.C., held by a 84-per-cent/16-per-cent joint venture with Universal Copper Ltd. Damara's board of directors is seasoned in the mineral exploration industry with extensive and successful international experience.

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