Mr. Anthony Margarit of K2 Gold reports

K2 GOLD ANNOUNCES AGREEMENT TO ACCELERATE ACQUISITION OF 100% OF SI2 PROJECT - DEFINES VECTORS TO MINERALIZATION THROUGH ALTERATION STUDY

K2 Gold Corp. has signed an agreement to acquire a 100-per-cent interest in the Si2 project in Nevada, United States, from Orogen Royalties Inc. as well as released the results of an alteration study completed on drill core from the Si2 gold project. Si2 hosts an early-stage epithermal gold system within the Walker Lane trend, which K2 believes represents a strong exploration analogue to the recent 13.3-million-ounce Silicon discovery.

Highlights:

• The alteration study determined that an intact low-sulphidation epithermal gold system is present on the Si2 property, with the most prospective horizons occurring within and adjacent to fault structures below the depth of current drilling.
• The alteration mineralogy indicates potential for higher-tenor gold mineralization slightly deeper than the current extent of drilling.
• K2 will acquire a 100-per-cent interest in Si2 by paying $250,000 in cash or common shares of K2 at the discretion of K2. Orogen will retain a 2-per-cent net smelter return royalty. The agreement follows on from the now terminated option agreement between Orogen and K2 (Jan. 19, 2022) whereby K2 made cash payments to Orogen totalling $200,000 (U.S.) and incurred over $2.3-million in exploration expenditures. (The common shares issued pursuant to the agreement are subject to the regulatory approval of the TSX Venture Exchange.)

"The results of this study confirm that the southern targets at Si2 host a typical low-sulphidation epithermal alteration assemblage but suggest that we did not test deep enough in this portion of the system. The encouraging alteration and increasing gold values intersected at relatively shallow depths leave us with highly prospective follow up targets beneath and along strike of the extent of our 2023 drilling. Fully acquiring the Si2 project allows us the flexibility to advance the project at our own pace as we approach the final steps in permitting at K2's flagship Mojave project," stated Anthony Margarit, K2's president and chief executive officer.

Alteration survey results

Samples were collected approximately every 25 metres along the length of each of the 2023 diamond drill holes, which were drilled in the AOI1 and AOI2 target areas at the project. The samples were submitted to a Reno-based consultant, who analyzed each sample by hand and short-wave infrared (SWIR) mineral analyzer to characterize the alteration assemblage present in the drilled area. A total of 108 spectral analyses were completed on 95 samples using a FieldSpec Pro spectroradiometer.

The alteration defined by the study shows an irregular progression from shallow, near-surface, steam-heated alunite and kaolinite/dickite downward into smectite, followed by illite-smectite, illite and illite-chlorite. Silicified zones and minor quartz veining were observed in the core of the drilled area, and possible adularia was noted in an interval in hole SD-23-001.

Variations in the amount and presence of illite observed in the core of the drilled area beneath the steam-altered cap may represent proximity to fluid flow zones, and anomalous gold appears to coincide with areas of illite-quartz-plus-or-minus-adularia alteration. This is best observed in holes SD-23-001 and SD-23-002, which drilled into the AOI1.5 fault: a normal fault which juxtaposes smectite-altered latite against quartz-illite-plus-or-minus-adularia-altered dacite and rhyolite. The fault hosts an approximately six-metre-thick interval of quartz veining intersected at 200-metre vertical depth. The highest-tenor gold mineralization intersected in the drilling occurs slightly deeper than and adjacent to this vein and fault, suggesting the same structure, as well as additional faults noted closer to surface in the 2023 drilling, may be prospective when intersected at a deeper level.

Additional work

The alteration study demonstrates that an intact low-sulphidation epithermal gold system is present on the Si2 property, with the most prospective horizons occurring within and adjacent to normal fault structures below the depth of current drilling.

Key targets for follow-up work include:

1. Immediately downdip and along strike of the quartz veining and gold mineralization intersected in hole SD-23-001;
2. Similar structural targets at depths greater than 250 metres below surface at the AOI3, AOI4 and AOI5 target areas, which remain undrilled.

Continuing work at the Si2 gold project includes age dating of the host rocks to better understand the geological context that hosts the alteration system as well as petrographic and fluid inclusion analysis of thin sections collected from key intervals in holes SD-23-001 and SD-23-002. The company intends to return to the Si2 project in 2025 to enhance existing geological mapping, expand on the existing geophysical surveys and continue to refine drill targets for a future drill test.

About the Si2 gold project

The Si2 gold project is located in Esmeralda county, approximately 60 kilometres northwest of Tonopah, Nev., and 20 kilometres northwest of Allegiant Gold's Eastside deposit (1.4 million ounces gold and 8.8 million ounces silver). The project is road accessible and consists of 118 BLM (Bureau of Land Management) lode claims covering 986 hectares, 65 of which are under option from Orogen Royalties. The claims cover an eight-square-kilometre area of steam-heated alunite-kaolinite-buddingtonite alteration within a sequence of felsic to intermediate volcanic rocks displaying brecciation and strongly anomalous mercury.

K2's 2023 diamond drill program at the Si2 project confirmed that the system is gold bearing. The project was initially identified using the same methods and by the same exploration team that identified AngloGold Ashanti's 4.21-million-ounce-gold Silicon project near Beatty, Nev., and was staked based on its strong geological similarities to Silicon.

Qualified person

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Eric Buitenhuis, MSc, PGeo, K2's qualified person and vice-president of exploration.

About K2 Gold Corp.

K2 is a proud member of Discovery Group and currently has three projects in southwestern United States and in Yukon.

The Mojave project is a 5,830-hectare oxide gold project with base metal targets located in Inyo county, California. Multiple previously recognized surface gold targets have been successfully drilled in the past, most notably by Newmont and BHP. Since acquiring the property, K2 has completed geochemical and geophysical surveys, geologic mapping, lidar, and a WorldView 3 alteration survey and has successfully completed a 17-hole RC (reverse circulation) drill program focused on the Dragonfly and Newmont zones. Highlights from K2's drilling program include 6.68 grams per tonne gold over 45.72 metres from surface at the Dragonfly zone and 1.69 grams per tonne gold over 41.15 metres from 44.20 metres depth at the Newmont zone.

The Wels project lies approximately 40 kilometres east of the community of Beaver Creek and 60 kilometres south of Newmont Goldcorp's Coffee deposit discovered by Kaminak Gold Corp. (formerly a Discovery Group company prior to its acquisition by Goldcorp-Newmont). Both the Coffee project and the Wels project lie within the Tintina gold belt, share similar characteristics and are host to structurally controlled gold mineralization within intrusive rocks exhibiting multiple trends of mineralization.

K2's 2023 reverse circulation drilling program at the Wels project intersected gold in every drill hole, including the discovery of a new mineralized corridor at the Saddle South target. The Wels land position consists of 350 contiguous quartz claims covering 7,200 hectares and lies within the traditional territory of White River first nation.

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