Mr. Steve Parsons reports

GOLDSOURCE PROVIDES UPDATE ON ENGINEERING AND EXPLORATION ACTIVITIES FOR EAGLE MOUNTAIN; DRILLING INTERSECTS 9.1 M (ETW) GRADING 4.41 GPT AT THE SOCA PROSPECT

Goldsource Mines Inc. has provided an update on its engineering and exploration activities for the company's 100-per-cent-owned Eagle Mountain gold project in Guyana, South America. The 2023 work program includes engineering activities focused on the delivery of a preliminary economic assessment (PEA) as well as generative exploration and drilling activities to test new targets within the Eagle Mountain prospecting licence (PL) and expansion and infill drilling to facilitate engineering studies.

Over all, the PEA and related engineering activities are progressing well with the announcement of results anticipated in the fourth quarter of 2023. With an improved balance sheet on completion of a $2.7-million equity financing (see news release dated May 23, 2023) and following an extensive multimonth review of geological data in collaboration with independent geological consultants, the company has returned to a higher pace of exploration activity. Through the balance of 2023, the exploration program will include additional generative work and drilling, testing existing and new targets outlined during the review.

The PEA will be based on the April, 2022, mineral resource estimate (MRE) comprising an estimated 31.1 million tonnes (Mt) grading 1.18 grams per tonne gold for 1,183,000 ounces of gold in indicated resources, and 18.4 Mt grading 0.98 g/t gold for 582,000 oz of gold in inferred resources. The 2022 MRE is contained in a report titled "Eagle Mountain Gold Project, Potaro-Siparuni Region Guyana, NI 43-101 Technical Report," dated May 24, 2022, with an effective date of April 5, 2022.

Engineering activity

The company's engineering activities and PEA parameters consider a fit-for-purpose, low-capex-intensity phased development plan for the Eagle Mountain project. The initial phase or phase 1 of approximately seven years will comprise shallow (starting at surface), low-strip-ratio open pits for saprolite resources and a processing plant design that accounts for certain beneficial characteristics of saprolite, including low power requirements and elevated metallurgical recoveries. Phase 2, for which optimization studies are in progress, considers the development of select higher-grade fresh rock resources which underlie the saprolite. The transition to fresh rock, both the timing and production scale, will be set to maximize the in-place infrastructure and potential free cash flow provided by the phase 1 saprolite project.

The company has engaged ERM Consultants Canada Ltd. (ERM), doing business as CSA Global Consultants Canada, to prepare the PEA. Canadian-based Soutex Inc. has been engaged as the metallurgical engineering consultant for aspects related to process plant design. Both CSA Global and Soutex have significant design and operational expertise for saprolite and phased development plans.

Steve Parsons, chief executive officer of Goldsource, commented: "Mineral resources at Eagle Mountain are distinctly shallow, starting at surface. This and a significant soft-rock saprolite component, much of which does not require drilling and blasting, has the potential to translate to lower-than-average capital and operating cost intensities vis-a-vis conventional hard-rock operations of a similar grade. Our stated objective has been to leverage the benefits of the saprolite. This will be reflected in our phased development approach for Eagle Mountain, giving initial priority to the saprolite mineralization followed by an expansion into fresh rock resources."

Exploration activity

Generative exploration highlights:

• Per plan in H1 2023, the company expanded its generative exploration program focusing on adding to the pipeline of exploration targets within the PL and district properties outside the PL for which the company has exploration agreements.
• In collaboration with independent geological consultants, the company completed a multimonth review of all geological data with site visits to enhance exploration models for prospects. New concepts will be tested through the balance of 2023 with generative techniques and core drilling.

Soca prospect and South Ann prospect drilling highlights:

• Notwithstanding a reduction in drill metres prior to July, 2023, several prospects were targeted within the PL.
• Results for 13 core holes totalling 1,652.5 metres for the Soca and South Ann prospects located approximately 1.5 and 1.1 kilometres, respectively, south of the 2022 MRE outline for the Eagle Mountain deposit along the Salbora-Powis north-south trend. Included are the results for five unreported core holes from 2022, which have benefited from the recent geological review of the area.
• Most significant drill intercepts results for this release are:
  • EMD23-282 within the Soca prospect intersected 10.5 metres (9.1 metres estimated true width (ETW)) grading 4.41 grams per tonne gold from three metres depth in saprolite, including an interval of 4.5 metres grading 9.80 g/t gold;
  • EMD22-175 within the South Ann prospect intersected 12 metres (9.2 metres ETW) grading 1.39 grams per tonne gold from 51 metres down hole in quartz porphyry intrusion with quartz veining.
• Soca mineralization is associated with quartz saturation alteration with quartz veining. Drilling targeted an interpreted contact zone around quartz porphyry intrusions, which at Soca and the other deposits along the Salbora-Powis trend exhibit localized higher gold grades.
• Drilling has intersected mineralization along an aggregate strike length of approximately 275 metres, down to 170 metres depth, with high-grade gold intervals as well as broader areas of lower-grade mineralization. Recent drilling has extended the prospect by 100 metres to the east with the identification of two additional mineralized zones represented by four drill holes EMD23-281 to EMD23-284.
• Drilling at South Ann targeted an interpreted contact between a quartz-feldspar porphyry intrusion and granodiorite. Four drill holes (EME22-175 to EME22-177 and EME22-183) intersected gold mineralization, which has an aggregate strike length of 175 metres with several mineralized intervals.

Kevin Pickett, chief geologist of Goldsource, commented: "The comprehensive geological review completed in recent months, with significant input from industry experts, has enhanced the team's exploration model for the various styles of mineralization at the project. Importantly, advancements confirm the current mineral resource model while also providing key information with respect to the geological genesis, which will enhance exploration targeting, notably in underexplored areas of the PL. Soca is one such area that has benefited from increased knowledge of the mineralization genesis, styles and alteration."

The attached table shows the most significant results (uncut, undiluted).

Drill hole sample preparation and geochemical analyses were completed by Actlabs Guyana Inc. in Georgetown, Guyana. Core holes EME22-178, EME22-179, EME22-181, EME22-182, EMD23-281 and EMD23-284 intersected mineralization below the cut-off of 0.3 g/t gold for saprolite and 0.5 g/t gold for fresh rock, mainly due to intersecting small postmineralization intrusions.

The qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, PEng, executive chairman of Goldsource, who has reviewed and approved its contents.

About Goldsource Mines Inc.

Goldsource Mines is a Canadian exploration company focused on the 100-per-cent-owned Eagle Mountain gold project in Guyana, South America. The company is led by an experienced management team, proven in making precious metals exploration discoveries and executing on phased project development in the Americas.

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