Mr. Roger Moss reports

LABRADOR GOLD ANNOUNCES SALE OF KINGSWAY PROJECT

Labrador Gold Corp. has entered into a property purchase agreement with New Found Gold Corp., whereby NFG will acquire a 100-per-cent interest in the Kingsway project, including all property and mining rights associated with the property, in exchange for $20-million payable and satisfied by the delivery to LabGold of such number of NFG common shares determined by dividing the purchase price by the closing price of the NFG common shares on the TSX Venture Exchange on the last trading day prior to the closing of the transaction. The consideration shares will be subject to a resale restriction of four months and one day from the closing of the transaction.

"The LabGold team has worked hard over the last four years to generate and test targets along the prospective Appleton fault zone. This work resulted in the discovery of seven gold occurrences from the nine targets drill tested, a 78-per-cent success rate," said Roger Moss, president and chief executive officer of Labrador Gold.

"As shown in the recently completed NI 43-101 technical report, a number of untested targets remain on the property, in addition to potential extensions of many of the gold occurrences. However, we understand the significant amount of drilling required to make these discoveries and we are happy that New Found Gold is proposing to take up the challenge at Kingsway. We believe that their experience at Queensway to the south will be critical as they explore the Kingsway project and demonstrate the true potential of the district," Mr. Moss added.

Labrador Gold's board of directors has unanimously recommended that Labrador Gold's shareholders vote in favour of the transaction. The directors and officers of Labrador Gold have entered into voting and support agreements with NFG, pursuant to which they have agreed, among other things, to vote their shares in favour of the transaction.

The transaction is expected to close in the third quarter of 2023 and is subject to customary conditions, including receipt of necessary regulatory and stock exchange approvals and approval from a 66-2/3-per-cent majority of the votes cast by Labrador Gold shareholders at the next annual general and special meeting of Labrador Gold to be scheduled for early July, 2024.

The definitive agreement includes customary deal-protection provisions. Labrador Gold has agreed not to solicit or initiate any discussion regarding any other business combination or acquisition. In the event that Labrador Gold validly terminates the definitive agreement to accept a superior proposal (as defined in the definitive agreement), Labrador Gold will be required to pay NFG a termination fee of $500,000.

Additional information regarding this proposed transaction will be provided in the management information circular that will be mailed to registered shareholders and filed on SEDAR+.

About Labrador Gold Corp.

Labrador Gold is a Canadian-based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada. Labrador Gold's flagship property is the 100-per-cent-owned Kingsway project in the Gander area of Newfoundland. The four licences comprising the Kingsway project cover approximately 12 km of the Appleton fault zone which is associated with numerous gold occurrences in the region. Infrastructure in the area is excellent located just 18 km from the town of Gander with road access to the project, nearby electricity and abundant local water. Labrador Gold's drilling targeting high-grade epizonal gold mineralization along the Appleton fault zone has outlined seven gold prospects to date. The company has approximately $6.5-million in working capital.

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