Mr. Brian Skanderbeg reports

GFG HITS MULTIPLE VEINS WITH VISIBLE GOLD AT ALJO AND A NEW FOOTWALL ZONE GRADING 13.35 G/T GOLD OVER 3.6 METRES, EAST OF TIMMINS, ON

GFG Resources Inc. has released the final gold assay results from the recently completed 2023 phase 2 drill program at its Goldarm project, located 40 kilometres east of Timmins, Ont. The results released today are from the Aljo mine target, located 30 kilometres east of the Montclerg gold project. This is the second drill program completed on the Aljo target and additional drilling is warranted based on the strong results and nature of the gold system.

In the phase 2 drill program, the company completed a total of 3,613 metres from 15 holes (seven at Montclerg and eight at Aljo). The program focused on stepout and infill drilling at Montclerg and tested a spectrum of targets at Aljo located within the Goldarm property east of Timmins, Ont.

"Our 2023 drilling programs have yielded meaningful results, contributing to a year of substantial progress for GFG," said Brian Skanderbeg, president and chief executive officer of GFG. "We have successfully infilled and expanded the Montclerg gold system and have exceeded our initial expectations at Aljo, where we've discovered high-grade mineralization and a more extensive gold system than what was previously understood from historical data.

"As we move into 2024, we remain dedicated to the expansion of Montclerg and Aljo. We are determined to build upon the discoveries made this year. Alongside our drilling efforts, we are methodically developing a robust pipeline of drill targets across our portfolio of Timmins properties, which spans over 800 square kilometres. The potential for uncovering new gold systems within these properties is substantial, given the considerable areas that have yet to be thoroughly explored.

"The year ahead is set to be one of strategic exploration and drilling, with a focus on both advancing our current projects and the exciting possibility of new discoveries. With our strategic planning, a team committed to meticulous exploration and an understanding of the geological potential of our properties, we are well positioned to sustain our momentum and deliver shareholder value."

Commentary on assay results

Anders Carlson, vice-president, exploration, of GFG, commented: "The high-grade zone intersected in the footwall of the Aljo mine workings in hole ALJ-23-004 represents an exciting new target along the Kingswood shear zone that has not been targeted by previous drilling. Understanding the association of high-grade gold mineralization to regionally extensive quartz-feldspar porphyry dikes will be an important step for our team as we continue to explore the highly prospective Aljo mine area."

ALJ-23-004 was drilled to test the extent of gold mineralization directly below historical underground workings of the Aljo mine. The hole returned anomalous gold values from surface to approximately 265 m down hole in mafic volcanics with high-grade vein intervals. These higher-grade zones, yielding up to 3.65 grams per tonne Au over 6.3 m, with multiple occurrences of visible gold, including 18.40 g/t Au over 1.1 m, occur in close proximity and internal to quartz-feldspar porphyry dikes. Alteration within the Aljo mine sequence is characterized by moderate to strongly pervasive sericite, ankerite, silica and chlorite alteration that is overprinted by a quartz-carbonate stockwork array. Sulphide mineralization within the Aljo mine is generally low and rarely exceeds 7 per cent pyrite and pyrrhotite with lesser chalcopyrite and arsenopyrite.

The footwall of the Aljo mine is less altered yet is more abundant in sulphide with up to 25 per cent blebby and patchy disseminated pyrite within the host mafic volcanics. Near the base of the hole a gabbroic unit was intersected and hosts a quartz-carbonate vein that returned the hole's best result of 13.35 g/t Au over 3.6 m, including 32.94 g/t Au over 1.4 m. This is the first hole that GFG has drilled below the Aljo mine workings and demonstrates there is more to the system than historical records show. Additional testing will be prioritized as hole ALJ-23-004 ended in high-grade gold mineralization.

ALJ-23-005 was drilled to test the down-dip extension of high-grade mineralization intersected in ALJ-22-002 that yielded 3.03 g/t Au over 12.9 m. The hole intersected several mineralized intervals south of the Aljo mine workings, including 0.36 g/t Au over 14.1 m associated with up to 15 per cent blebby pyrite in mafic volcanics.

ALJ-23-009 was drilled to test a historic trench in close proximity to the north Aljo mine shaft. The hole intersected a narrow zone of quartz-carbonate veining yielding 20.30 g/t Au over 0.5 m with up to 5 per cent blebby and disseminated pyrite and pyrrhotite in mafic volcanics. The zone lies within a metre of the mafic-ultramafic contact and speaks to the local high-grade nature of this north Aljo zone.

ALJ-23-011 was designed to confirm historical high-grade intercepts approximately 200 m northwest of the Aljo mine workings. The hole returned multiple intervals of gold mineralization in mafic volcanics, including 1.39 g/t Au over 19 m, and 1.86 g/t Au over 17.5 m, including 4.98 g/t Au over 3.6 m with visible gold. Quartz-feldspar porphyry dikes were also intersected in the hole and occur in close association with gold mineralization. Alteration in the hole was generally weak to moderate consisting mainly of patchy sericite, carbonate, silica, chlorite and biotite that is overprinted by a similar quartz-carbonate fracture array observed in ALJ-23-011 within the Aljo mine sequence. The presence of high-grade gold in association with porphyry dikes outside of the immediate Aljo mine area speaks to the exploration potential of the region.

Drill holes ALJ-23-006, 007, 008 and 010 returned anomalous grades of up to 2.27 g/t Au over 1.2 m. These holes were targeting a surface trench several hundred metres long straddling a major mafic-ultramafic contact that had not been tested by historical drilling. A 120 m deep shaft was sunk along this trench with grab samples from GFG yielding up to 276 g/t Au. The company still views this corridor of mineralization as highly prospective and will test alternative structural models with further drilling.

Outlook

Looking ahead, the company is optimistic about the progress and new opportunities unfolding at the Goldarm property. Drilling is scheduled to recommence later in the first quarter, with attention focused on the Montclerg and Aljo projects, along with initial assessments of several new targets. The company plans to carry out between 5,000 and 7,000 metres of drilling over several stages.

At the Dore property, the company is planning an aggressive summer field campaign to follow up on new orogenic gold and VMS (volcanigenic massive sulphide) targets that have been generated out of the recent regional till survey completed in Q4 2023. The goal is to advance the best targets to drill-ready status by Q4 2024 for first-pass drill testing.

The company's technical team is also active in applying fresh targeting concepts at its 475-square-kilometre Pen property west of Timmins where GFG spent more than three years building a very robust and target-rich data set from 2018 to 2020. The company will be conducting further exploration and target refinement in these areas over the coming summer.

At the company's wholly owned Rattlesnake Hills gold project in Wyoming, United States, GFG is in active discussions with potential partners to determine the best path forward. In the meantime, GFG will maintain the project in good standing.

About the Goldarm property

The Goldarm property is a large and highly prospective land package east of the Timmins gold camp. The consolidated Goldarm property covers approximately 30 km of the Pipestone deformation zone and the North Pipestone deformation zone. Within the Goldarm property, there are several highly prospective gold targets such as the Aljo gold mine region, the Carr target and the Montclerg gold project, which is the most advanced target. The Montclerg gold project covers 10 km of the highly prospective Pipestone deformation zone and is located 48 km east of the prolific Timmins gold camp and is adjacent to multiple current and historic gold mines.

About GFG Resources Inc.

GFG is a North American precious metals exploration company focused on district scale gold projects in Tier 1 mining jurisdictions, Ontario and Wyoming. In Ontario, the company operates three gold projects, each large and highly prospective gold properties within the prolific gold district of Timmins, Ont., Canada. The projects have similar geological settings that host most of the gold deposits found in the Timmins gold camp which have produced over 70 million ounces of gold. The company also owns 100 per cent of the Rattlesnake Hills gold project, a district-scale gold exploration project located approximately 100 km southwest of Casper, Wyo., U.S.

Sampling and quality assurance/quality control

All scientific and technical information contained in this press release has been prepared under the supervision of Mr. Skanderbeg, PGeo, president and CEO of GFG, a qualified person within the meaning of National Instrument 43-101.

Drill core samples are being analyzed for gold by Activation Laboratories Ltd. in Timmins, Ont. Gold analysis consists of the preparation of a 500-gram pulp and an assay of a 50-gram aliquot by lead collection fire assay with an atomic absorption spectrometry finish (package 1A2-50). Samples assaying above five parts per million Au are routinely rerun using a gravimetric finish (package 1A3-50). Mineralized zones containing visible gold are analyzed by a screen metallic fire assay method. Selected samples are also undergoing multielement analysis for 59 other elements using a four-acid digestion and an inductively coupled plasma mass spectrometry finish (Package MA250) by Bureau Veritas Commodities Canada Ltd. in Vancouver, B.C. Quality assurance and quality control measures include the monitoring of results for inserted certified reference materials, coarse blanks and preparation duplicates of drill core.

Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to three m at grades less than 0.2 g/t Au. True width is estimated to be 50 to 90 per cent of drilled length. Sampling protocols, quality assurance and quality control measures, and geochemical results related to historic drill core samples quoted in this news release have not been verified by the qualified person and therefore must be regarded as estimates.

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