Mr. Gerald Panneton reports

GOLD TERRA ANNOUNCES INITIAL GOLD RECOVERY OF 92% ON YELLOREX ZONE, CON MINE OPTION PROPERTY, YELLOWKNIFE, NWT

Gold Terra Resource Corp. has released its initial metallurgical tests showing excellent gold recovery results from the Yellorex zone part of the Campbell shear. The Yellorex zone is located approximately two kilometres south of the former producer, the Con mine, which is under option from Newmont Corp. The Yellorex zone is adjacent to the company's 100-per-cent-owned Yellowknife City gold project, Northwest Territories.

Highlights:

• Total gold recovery of 92.1 per cent achieved in its first testwork in the high-grade composite samples of 10 grams per tonne gold, after flotation concentrate, pressure oxidation (POX) and cyanide leach;
• Excellent gold assays reporting up to 98.8 per cent of gold in the flotation concentrate with close to 7 per cent sulphide content;
• Results provide Gold Terra with two potential product paths for Yellorex mineralization, either to:
  • Produce a saleable concentrate;
  • Produce gold on site through the POX process.

The Con mine (1938-2003) produced over six million ounces of gold over more than 50 years of mine life. Historically gold mineralization encountered at shallower depths in the mine (generally above 1,000 metres) was likely refractory gold, while deeper mining was free-milling gold, hence a gravity circuit was added by Nerco in 1989. In the more recent years (1987-2003), the former Con mine operated with a flow sheet including a gravity circuit, a flotation circuit, followed by a pressure oxidation (POX) circuit, or autoclave. Nerco, with selective free-milling ores, achieved up to 95 per cent recovery, while Miramar Mining increased the throughput from 800 tons per day (tpd) to 1,400 tpd and achieved 88 per cent to 90 per cent recovery by mixing free-milling ore with refractory ore after the acquisition from Nerco in 1993.

The Yellorex zone is currently drilled at shallow depths (surface to approximately 300 metres), and therefore was expected to be refractory. Metallurgical testwork was performed by SGS Lakefield (SGS) on core reject samples obtained from drill hole GTCM22-030 (6.41 g/t gold over 26.5 m including 9.05 g/t over four metres; 10.66 g/t gold over three metres; and 14.15 g/t gold over 5.5 m (see news release April 6, 2022)). This hole was designed to cross the Yellorex zone obliquely to obtain a representative sample of the deposit. Core rejects were composited from high-grade lodes (approximately 10 g/t Au), and a second composite generated from low-grade material (approximately 1.5 g/t Au) adjacent to the high-grade composites.

The SGS metallurgical test program consisted of a coarser grind (80 per cent passing approximately 100 microns) with an initial gravity recovery, followed by a sulphide flotation concentration of the gravity tails. This was followed by a finer grind of the flotation concentrate to 80 per cent passing 28 microns, and a pressure oxidation (POX) of the reground concentrate. The results are shown in Table 1.

Conditions that prevailed for current testwork are as follows: 30 per cent solids (weight/weight), one gram/litre NaCN (cyanide), pH between 10.5 and 11, dissolved oxygen between eight and nine parts per million, 24 hours retention time, and four grams of carbon added.

Overall recovery means including gravity, flotation, regrind, pressure oxidation and cyanide.

Flotation rougher concentrate with a recovery of 95 per cent for the high-grade composite graded up to 41 g/t Au with approximately up to a 7-per-cent sulphide component.

Preliminary results of this initial testwork are very encouraging, with a combined total gold recovery of POX and cyanide leach of the sulphide concentrate of 92.1 per cent in the high-grade composite samples. The high-grade composite gold recovery in the sulphide concentration of the gravity tails reported 93 per cent gold recovery with 98.8 per cent recovery in POX within 24 hours. These results provide Gold Terra with two potential product paths for Yellorex mineralization, either to produce a saleable concentrate, or to produce gold on site through the POX process. Commenting on these potential products, and potential trade-off studies, Chris Fleming, senior consultant at SGS, stated:

"The main advantage/disadvantages of the float and flog option are:

• Lower capex and simpler operation by avoiding POX/CIL et cetera;
• Lower gold recovery in flotation when making a high-grade concentrate for sale to a smelter (reduce shipping costs, etc.);
• Potential risk on gold losses to custom smelting charges.

"The main advantage/disadvantages of the float/POX/CIL option are:

• Higher gold recovery by allowing for higher mass pull in flotation;
• Possibly lower grinding costs with a coarser primary grind;
• Flexibility to treat lower-gold-grade feed to POX/CIL and recover gold from lower-grade ore zones of the deposit;
• Higher capex and potential operational complexity."

Gold Terra is currently drilling via wedges in the area of Y88 at approximately 1,000 m below surface. The company intends to return to the Yellorex area next winter, or earlier, once the extended all-year road is approved south of the Con mine. The company's main objective is to achieve its target of 1.5 million ounces of gold in mineral resources as per the Con mine option agreement with Newmont.

Technical appendix

The technical information contained in this news release has been reviewed and approved by Joseph Campbell, chief operating officer, a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Option to acquire the Con mine property (Con mine option property)

Gold Terra entered into a definitive option agreement with Newmont Canada FN Holdings ULC and Miramar Northern Mining Ltd., both wholly owned subsidiaries of Newmont Corp., which grants Gold Terra the option, upon meeting certain minimum requirements, to purchase Miramar Northern from Newmont FN, which includes 100 per cent of all the assets, mineral leases, Crown mineral claims and surface rights comprising the Con mine, as well as the areas immediately adjacent to the Con mine, as shown in Exhibit A (see Nov. 22, 2021, news release).

Under the option agreement, Gold Terra has agreed to incur a minimum of $8-million in exploration expenditures over a period of four years, which will include all exploration expenditures incurred to date under the initial exploration agreement. Gold Terra has also agreed to complete a prefeasibility study of a mineral resource and a minimum of 1.5 million ounces in all categories; obtain all necessary regulatory approvals for the purchase and transfer of Miramar Northern's assets and liabilities to Gold Terra; and post a cash bond to reflect the status of the Con mine reclamation plan at the time of closing. The closing of the transaction will then be completed with Gold Terra making a final cash payment of $8-million.

Director and founder Stuart Rogers retires from his position as director

Mr. Rogers, co-founder of the company in 2008, has decided to retire as a director of the company effective today, Aug. 31, 2022. Mr. Rogers will remain as an adviser to the company on an as-needed basis.

Gerald Panneton, chairman and chief executive officer of Gold Terra, stated: "We sincerely thank Mr. Rogers for being the founder of the company with Mr. Joseph Campbell, our current COO. Both founders had a vision to explore the highly prospective Yellowknife greenstone belt, an underexplored area of Canada that has potential for multiple discoveries to come."

We seek Safe Harbor.