Mr. Fletcher Morgan reports

TDG GOLD CORP. INCREASES GRADE, QUANTITY AND CONFIDENCE IN MINERAL RESOURCE ESTIMATE FOR SHASTA, TOODOGGONE

TDG Gold Corp. has released an updated mineral resource estimate (MRE) incorporating the results of its 2022 phase 2 drill program at the former-producing Shasta gold-silver (Au-Ag) mine. The key outcomes were increased grade, increased contained ounces and a substantial improvement of the classification of the mineral resources. An updated technical report will be filed on the company's website and SEDAR within 45 calendar days of this disclosure.

Highlights -- 2023 expanded and upgraded mineral resource estimate:

• Indicated mineral resource of 514,800 ounces (oz) gold equivalent (AuEq) grading 1.27 grams per tonne (g/t) AuEq, contained within 12.6 million metric tonnes (Mt);
• Inferred mineral resource of 496,300 oz AuEq grading one g/t AuEq, contained within 15.4 Mt;
• Increased cut-off grade for new base case scenario: 0.4 g/t AuEq cut-off grade (COG) versus the 0.3 g/t AuEq COG used in 2022 MRE;
• MRE expanded to include the Cayley-Rainier zone to the south;
• MRE pit outline extends to within 100 metres of the Newberry exploration target zone;
• MRE shows continuity and consistency, with an increased COG having relatively minor impact on the pit-constrained AuEq ounces;
• Shasta deposit remains open at depth and along strike (see TDG news release dated March 20, 2023);
• MRE does not include any of the Greater Shasta-Newberry satellite exploration target zones.

Fletcher Morgan, TDG's chief executive officer, commented: "TDG has systematically expanded and upgraded the confidence in the Shasta deposit over the past two field seasons with approximately 13,250 metres of drilling. The Shasta deposit remains open along strike and at depth, with further potential for grade improvement and conversion of currently unclassified material contained within the mineral resource limiting pit to mineral resources through additional drilling.

"In parallel, as we have previously disclosed, our technical team has outlined potential at Greater Shasta-Newberry for one or more additional Shasta-scale deposits. Given the Shasta deposit's proximity to our existing infrastructure (consisting of the Baker mill, mine road, tailings storage facilities, mining leases and permits), we are keen to show that the project can continue to grow rapidly through targeting these satellite exploration target zones for drilling."

Overview

Following the release of the initial Shasta MRE in 2022 (see TDG news release dated May 17, 2022), TDG completed a second drill campaign of 5,034 m of HQ-oriented diamond drilling in 21 drill holes. This phase 2 program focused on infill drilling to upgrade the resource classification and additional drilling to step out and test for down-dip/down-plunge extensions to the mineralized envelope. TDG also reassayed all 2021 drill core with greater-than-detection concentrations of Au after a potential low bias was detected during data quality analysis (see TDG news release dated Aug. 29, 2022). This work, in addition to remodelling, has resulted in an MRE that has upgraded a significant portion of the mineral resource into the indicated category and has added blocks outside of the original mineral resource model into the inferred mineral resource. Exploration has also helped to identify target areas for potential future mineral resource expansion and reclassification in subsequent drilling.

Mineral resource overview

The Shasta deposit mineral resource database consists of 384 drill holes with 18,526 assay intervals from 1983 through 2022. This represents 37,474 metres of assayed intervals at an average interval of 1.3 m per assay interval. Approximately 50 per cent of all assayed interval lengths of core used in the mineralized domains comprise TDG's modern, HQ diameter, oriented, diamond drill core from 2021 and 2022. The remaining assay intervals from the mineralized domains are from historical drilling. All data used for the mineral resource estimate have been validated statistically to show no significant bias, either by twinned drill holes in 2021 or through statistical comparison with historical data with TDG drilling using point validation. Historical drilling has also been validated by field validation of collar locations.

Two mineralized domains were generated based on: (i) the major north-south Shasta fault system, as well as (ii) the northwest-trending, subvertical JM zone. The block model has a five m five m by five m by five m selective mining unit, with interpolation of Au and Ag calculated by inverse distance cubed (ID3). The interpolations were limited by the domain boundaries and were clipped to the overburden surface. Historical mine workings were removed from the in situ mineral resource estimate.

There are no other known factors or issues that materially affect the MRE other than normal risks faced by mining projects in the province of British Columbia, Canada, in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and additional risk factors.

Mineral resource growth potential

The Shasta mineral resource area (hatched area) is open at depth and along strike. This provides TDG with potential to increase the mineral resource outside of the current MRE pit extent in addition to potentially converting unclassified blocks that may be mineralized within the MRE pit between the two dominant mineralized trends (Shasta and JM). The expansion potential includes: (i) down-dip farther west in the Creek/Shasta zone (see TDG news release dated Feb. 21, 2023); (ii) east of the JM zone toward the Hood and Fisher zones (see TDG news release dated Feb. 28, 2023); (iii) south of the JM pit where approximately 700 m of strike length is demonstrated to be mineralized but sparse drilling and poor assay density suggest potential to upgrade material within the MRE pit (see TDG news release dated Feb. 7, 2022); (iv) farther south beyond the Cayley-Rainer zone where soil geochemistry, historical trenching, outcrop mapping and ground geophysics suggest the anomalous trend continues; and (v) north toward Newberry where the edge of the MRE pit is less than 100 m from the edge of the Newberry exploration zone (see TDG news release dated Feb. 28, 2023).

The Greater Shasta exploration target area comprises approximately 256 hectares (ha) of prospective exploration ground of which the Shasta mineral resource area accounts for only 43 ha. The other approximately 213 ha represent road-connected, highly prospective exploration ground with potential for the discovery of additional epithermal Au-Ag-style mineralization in close proximity to the defined Shasta mineral resource area. During 2022, TDG focused grassroots exploration efforts on recompilation and targeting outside of the Shasta mineral resource area. This included a comprehensive data review led by key TDG consultant Chris Dail, in addition to field exploration which included geological reconnaissance, ground geophysics and soil geochemistry (see TDG news release dated Sept. 13, 2022). This work resulted in the defining of four high-priority, drill-ready targets within the Greater Shasta target area and the rediscovery of the Newberry target, the southern extent of which lies within 100 m of the Greater Shasta target area and is also drill ready. These targets have similar geological, geochemical, geophysical and structural characteristics to the Shasta deposit (see TDG news releases dated April 3, 2023, and April 6, 2023) and present an opportunity to discovery and define additional mineralization in close proximity to the Shasta deposit.

Steven Kramar, TDG vice-president, exploration, commented: "Through our extensive data recompilation exercise, we have now defined multiple high-priority target zones within the Greater Shasta-Newberry exploration target area of which the Shasta deposit is the first that we have drill tested. A pattern that is starting to emerge is the potential for these individual higher-priority target zones to coalesce into what we hope will become a single, larger target. We have seen this with the Cody Lee zone, which has been expanded to the edge of the Hood zone. We have also seen this with the Fisher and Hood zones appearing to intersect east of the Shasta deposit and showing features that could suggest further connectivity into the Shasta deposit itself at the JM zone.

"Within the 256 ha Greater Shasta area, all target zones lie within one kilometre of the Shasta MRE pit outline and almost the entirety of the Greater Shasta area is interconnected by historical exploration roads and trails. The potential to discover additional Shasta-sized deposits within the Greater Shasta-Newberry target area is a priority for our proposed future exploration programs."

Forward plan

In order to continue to upgrade and expand the Shasta MRE, and in anticipation of progressing toward a preliminary economic assessment (PEA), TDG plans to:

1. Integrate TDG's improved geological model using lithogeochemistry and detailed core logging from the 2021 and 2022 drill campaigns. The geology at Shasta is multifaceted, with alteration and hydrothermal brecciation often masking distinguishing features of primary lithology. TDG has employed modern lithogeochemical techniques to investigate: (i) if the volcanic/volcaniclastic facies of the Shasta deposit imply a distinct geochemical fingerprint; and (ii) if there is a grade sensitivity based on lithogeochemical rheology. Improved understanding of controls on mineralization could further improve confidence in the MRE and provide tools for targeting additional mineralization.
2. Reconfirm historical collar locations using differential GPS (DGPS). A comprehensive program of high-precision DGPS to confirm/reconfirm as many historical collars in the Greater Shasta area as possible with a higher degree of precision than previously completed. This effort will modernize the Greater Shasta database (including the Shasta resource area) to a precision better than 50 centimetres, assisting with future exploration and vein location/orientation investigations. Such data are not expected to have a material impact on the current MRE but could improve understanding of controls on, and continuity of, mineralization.
3. Undertake detailed surveying of historical underground development. Utilizing DGPS, TDG will survey the historical portals to a precision better than 50 cm and access the underground workings to tie high-precision modern DGPS co-ordinates with modern survey data. This will enable location of the historical underground workings to a certainty level of less than one m and allow better control on future drilling from surface by providing a 3-D view of the Shasta epithermal vein system and improve confidence in interpolation of mineralization.
4. Complete the vein orientation study and link this to the lithogeochemical/lithological analysis. TDG has two drill campaigns of high-density, oriented, large-diameter (HQ) core drilling around the Shasta deposit. Most of these cores are oriented and are undergoing vein orientation analysis which, combined with the lithogeochemical work, should assist in understanding the dominant orientations of veins/vein arrays that contain the highest precious metal concentrations. This could further improve confidence in the MRE and enhance vectoring of higher-grade internal mineralized trends.
5. Undertake additional drilling of the known open extensions of the mineralization. The Shasta deposit is open at depth and along strike (see TDG news release dated March 20, 2023). Drilling additional potential extensions of the known mineralized system could produce an increase in the overall Shasta mineral resource. Areas of interest have been identified within and adjacent to the proposed pit outline where drill density and assay data are currently sparse, but mineralization appears to persist; for example, between the JM/Shasta zone and Cayley-Rainier zone. This area is within the mineral resource limiting pit and, as such, any mineralization encountered could positively impact a future MRE by increasing mineralized blocks and converting in situ waste to mineralized tonnes, thus reducing the implied strip ratio.
6. Exploring Greater Shasta-Newberry as a larger mineralized system. Exploration and drilling at Greater Shasta-Newberry offers the potential to increase understanding of the epithermal system and presents the opportunity to make one or more additional Shasta-sized discoveries for potential inclusion within a larger, updated MRE.

Geological interpretation

The Shasta property is underlain predominantly by a succession of feldspar, quartz, biotite and hornblende crystal-rich pyroclastic and epiclastic rocks within the Toodoggone volcanics. In the Shasta deposit area, these rocks have been informally termed the basal series, the pyroclastic series and the epiclastic series based on differences in composition and depositional environments. In general, the epiclastic/volcaniclastic rocks occur to the west and north of the Shasta deposit whereas the pyroclastic rocks host the mineralization and underlie most of the area immediately south and east of the Shasta deposit. The structure on the Shasta property is dominated by north-northwest-trending normal and/or dextral block faulting where tilting and rotation of the fault blocks is gentle, and the structural fabrics/breaks control the initial emplacement and/or displacement of the Au-Ag mineralization.

Geology of the Shasta deposit is a succession of rocks derived from volcanic activity and periods of quiescence with subsequent active weathering of volcanic slopes. Rocks hosting the Shasta deposit can be summarized as lapilli-ash tuffs, lapilli-block tuffs with minor ash-flows, lava flows and associated epiclastic rocks. Rocks within this succession can be cryptic to identify with alteration, mineralization and hydrothermal brecciation masking protolith identification. While compositional rheology within these units is likely associated with vein development, comprehensive investigations utilizing modern lithogeochemical techniques aided by high-density drilling has never been completed (see forward plan).

The Shasta deposit is a low-sulphidation epithermal multiphase quartz-carbonate stockwork/hydrothermal breccia vein deposit (quartz-adularia type) endowed by significant Au-Ag mineralization. The deposit consists of multiple overlapping high-grade quartz-calcite stockwork/breccia systems that display similar characteristics, occurring as narrow curviplanar breccias that pinch and swell with variable alteration and vein intensity over known strike lengths greater than 1,000 m, in addition to a lower-grade halo of mineralized rocks hosting Au-Ag mineralization proximal to the high-grade breccias.

Mineralization is dominantly native gold, silver, electrum and acanthite associated with finely disseminated grey sulphides and coarser-grained pyrite. Mineralization is associated within quartz and calcite, with higher grades associated with higher proportions of calcite/quartz ratios. While rocks from the Shasta deposit can be strongly altered and/or silica flooded, alteration (potassic, chloritic, phyllic and propylitic) visual wallrock alteration intensity does not appear to be indicative of precious metal concentrations and geochemical methods are better utilized. Au:Ag ratios range from 1:10 (one g/t Au per 10 g/t Ag) to 1:100 with a deposit average of about 1:45.

The Au-Ag mineralization of the Shasta deposit is structurally controlled along two dominant trends, the Shasta/Creek zone and the JM zone. The two trends encompass most of the historically mined mineral resources during past mining efforts. The Creek/Shasta zone strikes approximately 180 degrees, dips moderately to the west and has a strike extent of at least 800 m. The JM zone strikes approximately 330 degrees, dips steeply to the east and has a strike extent of at least 1,000 m. Both zones have an interpreted shallow northern plunge, with the attitude of the structures producing an inverted V-shape geometry converging in the north and diverging to the south.

The Au-Ag mineralization crosses lithological boundaries. The Shasta/Creek zone mineralization may be associated with the Shasta fault, and the high-grade core of the mineralized envelope approximates the attitude of the Shasta fault for a significant portion of the strike length. While the Shasta fault is likely postmineral, the north-northwest trend of the Shasta fault (and regional structures) and associated lithological units are continuous along the western portion of the Shasta deposit, and therefore modelling economic grade along these trends (lithological and mineralization) is appropriate to use as the primary basis of the 3-D modelling. The JM zone has been interpreted as a fracture system with internal hydrothermal brecciation and has a consistently mapped attitude and trend of the high-grade mineralization (core) across significant distance of strike length. The improved lithological model demonstrates continuity across a significant portion of strike length, and thus the same methodology is applied to modelling as the Shasta/Creek zone. Geological downhole structural data (faults) were utilized to assist in the generation of the 3-D Shasta domain model.

Data verification

TDG followed industry-standard quality assurance/quality control (QA/QC) protocols for the 2021 and 2022 drill programs by inserting blind certified reference materials (CRMs), field duplicates and blanks into the sample stream of core samples at sufficient proportions to primary core samples. QA/QC is maintained internally at the lab through rigorous use of internal CRMs, blanks and duplicates.

If a QA/QC sample returns an unacceptable value an investigation into the results is triggered and, when deemed necessary, the samples that were tested in the batch with the failed QA/QC sample are retested.

The drill cores from 2021 and 2022 drilling were delivered to the core shack at TDG's Baker mine site, and processed by geologists who inserted QA/QC samples into the sampling sequence. The drill core was cut in half (one-half HQ core) and placed in zip-tied polyurethane bags, then in security-sealed rice bags before being delivered directly from the Baker mine site to Bandstra Transportation Systems in Prince George, B.C., en route to either:

1. SGS's laboratory in Burnaby, B.C., for preparation and analysis of 2021 drill core samples. Samples were prepared and analyzed following procedures summarized herein, where information about methodology can be found on the SGS Canada website, in the analytical guide;
2. ALS's preparation facility in Kamloops, B.C., and ultimately to ALS's laboratory in North Vancouver, B.C., for 2021 drill core samples. Samples were prepared and analyzed following procedures summarized herein, where information about methodology can be found on the ALS Global website, in the analytical guide.

Historical data were verified using point validation, by interpolating the Au and Ag grades to locations of the historical data for comparison. In addition, two of the 2021 drill holes were twins of historical drilling. Based on these analyses, the historical drilling for years 1983 to 2006 show no significant bias.

Drill collar validation was completed using hand-held (Garmin GPSMAP64 or equivalent) GPS equipment, selecting a subset of historical collars to validate positions inherited from the historical database. In 2022, a DGPS was utilized to further validate historical collars and rectify locations into modern UTM NAD83 zone: 9 north co-ordinate system (from a locally derived mine grid). Collar locations from the 1980s/1990s era drilling were validated for use in the mineral resource database, whereas drill holes from 2007 and 2010 drill were not able to be validated and were excluded from the mineral resource estimate. It is anticipated that with further effort these excluded drill holes may be recovered after their collars have been located more precisely (see forward plan).

Key assumptions and methods used for the mineral resource estimate

Grade capping

Cumulative probability plots (CPPs) for the assays within both domains have been used to determine high-grade outliers which were capped. CPPs of the composited data (composited at two m) have been used to determine the outlier restriction during interpolation. Outlier restriction values are applied for distances beyond five m from the composite locations.

Variography and interpolations

Variography was completed on each domain for Au and Ag to determine appropriate search parameters. Interpolation has been done by ID3 in four passes with increasing search distances up to 150 m for the major and minor axes. The modelled grades have been validated using declustered composites (nearest neighbour or polygonal model) and indicate no global bias with appropriate smoothing throughout the grade-tonnage curves.

Classification of mineral resource criteria

Volumes of the mineral resource that contained 2021 and/or 2022 drilling data with an average distance between two drill holes of 50 m (or less) were considered indicated. The mineral resource was assigned to inferred for all other blocks interpolated, with a gold grade.

Cut-off grade

The COG was selected using AuEq to cover, as a minimum, the processing and general and administrative costs and to account for the metallurgical recovery, smelter terms and royalties. In 2022, the base case COG was 0.3 g/t AuEq, which approximates the marginal economic COG; and in the current 2023 resource estimate, the base case COG is assigned at 0.4 g/t AuEq, a 29-per-cent increase in COG, improving the quality of the MRE.

Preliminary metallurgical analysis

TDG performed preliminary metallurgical analysis (see TDG news release dated May 2, 2022) for select cores drilled in 2021. Direct cyanidation achieved extraction percentages of 84.7 per cent to 96.4 per cent for Au, and 69.1 per cent to 80.5 per cent for Ag; flotation testing delivered recoveries to concentrate of 94.3 per cent and 98 per cent for Au, and 88.4 per cent and 96 per cent for Ag; and flotation concentrate regrinding and cyanidation delivered recoveries of 87.7 per cent to 94.8 per cent for Au, and 64.8 per cent to 77.2 per cent for Ag. The metallurgical results are in line with the historical mill records at the time when ore from Shasta was last processed at the Baker mill (2012) and these results were utilized in the MRE calculation to help guide potential metal recovery scenarios.

Qualified persons

The geologically related technical content of this new release has been reviewed and approved by Mr. Kramar, PGeo, vice-president, exploration, for TDG and a qualified person, as defined under National Instrument 43-101.

The technical information relating to the mineral resource estimate has been prepared by Sue Bird, PEng (Moose Mountain Technical Services), a qualified person, as defined under National Instrument 43-101 and who is independent of TDG.

About TDG Gold Corp.

TDG is a major mineral and placer tenure holder in the historical Toodoggone production corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former-producing, high-grade gold-silver Shasta, Mets and Baker mines, which are all road accessible, produced intermittently between 1981 and 2012, and have over 65,000 m of historical drilling. The projects have been advanced through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, at Shasta, 13,250 m of modern HQ drill testing of the known mineralization occurrences and their potential extensions. In May, 2022, an initial mineral resource estimate was published for Shasta (see TDG news release dated May 17, 2022) and which has been updated in this current news release. In January, 2023, TDG defined a larger exploration target area adjacent to Shasta (Greater Shasta-Newberry; see TDG news release dated Jan. 25, 2023) with drill-ready targets where TDG aims to undertake follow-up exploration activities in 2023.

We seek Safe Harbor.