Mr. John Glanville reports

CONTACT GOLD MAKES NEW GOLD DISCOVERY AT THE WEST TARGET, PONY CREEK

Contact Gold Corp. has provided drill results from an additional 12 holes, totalling 2,500 metres from its 2018 drill program at the Pony Creek gold property, located in Elko county, Nevada, adjacent to Gold Standard Ventures' Railroad-Pinion project.

Drill highlights

• 0.42 gram per tonne gold over 33.53 metres oxide from 4.57 metres in discovery hole PC18-018 at West target -- including 1.11 g/t Au over 4.5 metres;
• 0.61 g/t Au over 21.34 metres oxide from 103.63 metres in drill hole PC18-012 at Bowl zone;
• 0.18 g/t Au over 25.91 metres oxide from surface in drill hole PC18-07 at Bowl zone.

These drill holes were designed to begin testing the two-kilometre-long gold-in-soil and CSAMT anomalies (West target), which were generated through the 2017 exploration program and to build upon areas of open gold mineralization at the Bowl zone. Drilling by previous operators in the area of the West target failed to reach the structural control for gold mineralization identified by Contact Gold. The West target is one kilometre north of the property's Bowl zone and is interpreted to be located along the same major north-south structure associated with oxide gold mineralization at the Bowl zone, and potentially Gold Standard Ventures' Jasperoid Wash zone.

"The team is very excited with this genuine new discovery of gold at Pony Creek. The West target was generated through first principles exploration methods, including geology, geochemistry and geophysics completed in 2017. Intersecting oxidized, near-surface gold mineralization in the first hole into a fresh target is what every exploration geologist dreams of and it happens very rarely in a mature area like the Carlin trend. The West target is over two km long and we intend to aggressively drill test both the west and east flanks of it in the coming months," stated Vance Spalding, vice-president of exploration of Contact Gold.

Drilling through 2018 is designed to expand mineralization at the Bowl zone, and to test new large-scale targets, including the North zone and the West, Moleen, and Elliot Dome targets, generated by Contact Gold since acquiring the property one year ago. The company has completed 29 holes in 2018, totalling over 6,000 m of 16,000 planned metres of drilling. The drill program forms part of a comprehensive property wide exploration program comprising over 4,000 soil samples and geological mapping to support additional drill target generation. Assays are pending for 12 holes, with drilling scheduled to run through November, 2018.

Key points

• Oxide gold mineralization has been discovered by Contact Gold in the first holes drilled by the company at the West target within newly recognized Pennsylvanian-Permian host rock calcareous sandstones and conglomerates -- interpreted to be same host rocks as Gold Standard's nearby North Dark Star deposit.
• Contact Gold continues to focus on discovering new zones of oxide gold mineralization like the West target, and expanding known mineralization at the Bowl and North zones.
• The West target discovery demonstrates the potential of Pony Creek to produce additional gold discoveries, and validates the systematic targeting methodology employed by Contact Gold.
• Ten thousand metres of additional drilling will be completed before year-end, including 12 holes dedicated to follow up the West target.

                     2018 PONY CREEK DRILL RESULTS

Drill hole   From (m) To (m) Au (g/t)     Int. (m)     Zone/target

PC18-06        15.24  18.29     0.24         3.05             Bowl
               24.38  27.43     0.15         3.05
                38.1   44.2     0.16         6.10
               67.06  80.77     0.15        13.72
              112.78  120.4     0.17         7.62
              129.54 164.59     0.35        35.05
including     155.45 164.59     0.29         9.14
              185.93 201.17     0.20        15.24
PC18-07            0  25.91     0.18        25.91             Bowl
               25.91   38.1     0.16        12.19
               59.44  62.48     0.14         3.05
              132.59 135.64     0.24         3.05
              149.35 156.97     0.31         7.62
              163.07 166.12     0.19         3.05
              173.74 176.79     0.31         3.05
PC18-08       161.55 170.69     0.19         9.14             Bowl
              184.41 208.79     0.21        24.48
              301.76 306.33     0.25         4.57
PC18-09        30.48  39.62     0.29         9.14             Bowl
PC18-10        39.62  42.67     0.19         3.05             Bowl
               51.82  56.39     0.21         4.57
               62.48   70.1     0.19         7.62
PC18-12       103.63 124.97     0.61        21.34             Bowl
              144.78 147.83     0.18         3.05
              163.07 166.12     0.17         3.05
PC18-15         1.52   4.57     0.21         3.05             West
PC18-17        13.72  25.91     0.18        12.19             West
               91.44  94.49     0.18         3.05
              106.68 111.25     0.34         4.57
PC18-18         4.57   38.1     0.42        33.53             West
including      15.24  19.81     1.10         4.50

Pony Creek is an early-stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in a technical report entitled "Technical Report on the Pony Creek Gold Project, Elko County, Nevada, USA" dated April 18, 2017, and effective March 15, 2017, prepared by Michael M. Gustin, CPG, of Mine Development Associates of Reno, Nev., which can be viewed under Contact Gold's issuer profile on SEDAR.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, vice-president of exploration, Contact Gold, who is a "qualified person" within the meaning of NI 43-101. Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 part per million gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low-grade intervals and higher-grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all fire assays above 4.00 ppm gold. True width of drilled mineralization is unknown, but owing to the apparent flat-lying nature of mineralization, is estimated to generally be at least 70 per cent of drilled thickness quality assurance/quality control consists of regular insertion of certified reference standards, blanks and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. Multielement geochemical assays are completed on composites using the MEMS 61 method. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.

About Contact Gold Corp.

Contact Gold is a gold exploration company focused on leveraging its properties, people, technology and capital to produce district-scale gold discoveries in Nevada. Contact Gold's extensive landholdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises 275 square kilometres of target-rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.

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