Drill Assay Results from Goldenville Project Return 98.29 g/t Gold over 0.7 Metres and a Broader Intercept of 6.90 Metres Grading 2.70 g/t Gold

Vancouver, British Columbia--(Newsfile Corp. - February 21, 2018) - Osprey Gold Development Ltd. (TSXV: OS) (OTCQB: OSSPF) (the "Company" or "Osprey") is pleased to announce additional assay results from its 18 hole, 3,044 metre ("m") drill program at the Company's Goldenville Property ("Goldenville"), located in Guysborough County, Nova Scotia. This release includes results for holes G17-08 to G17-15 drilled on the main Goldenville trend, in the immediate vicinity of the Company's current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped). Holes G17-1 to G17-7 were previously reported by way of news release dated November 6, 2017. Three holes drilled at Mitchell Lake are still pending and will be reported shortly.

Notable in the 2017 holes are multiple significant intercepts reflecting the mineralized nature of the Goldenville trend where gold is hosted in an array of stacked quartz veins and host rocks within a large anticlinal fold.

Highlights:

• G17-14 intersected 52.00 g/t gold over 0.70, within 6.30 m of 6.22 g/t gold — this area is open 750m to the east to hole G07-12;
• G17-08 intersected 98.29 g/t gold over 0.70 m, as well as 2.70 g/t gold over 6.90 m on the north limb of the anticline;
• G17-15 intersected 1.52 g/t gold over 14.40 m 64 m east along strike from G17-08, east of Highway 7 in the Bluenose Mine area;
• G17-09 intersected 2.04 g/t gold over 11.10 m, 114 m along strike from G17-08;
• G17-13 intersected wide zones of well mineralized host rock and quartz veins in the same unit as G17-07, but no values over 1 g/t gold;

Company President Cooper Quinn said, "We're very happy with the results of this program. These results support the potential to expand our current resource at Goldenville. The drill program also tested for broader zones of mineralization outside of the vein-hosted gold; this was successful in the southern limb of the Goldenville anticline in hole G17-14 which contained multiple intercepts of lower grade mineralization within the host rock. In the northern limb, results in the Bluenose Mine shaft area are very encouraging, returning the highest grades Osprey has drilled to date as well as broad zones of mineralized host rock and quartz veining, highlighted in hole G17-15 drilled over 300 m along strike to the east from G17-14."

More complete assay results from the program are available below in Table 1, with collar location data in Table 2. In addition, a plan map displaying drill collars from this program in relation to historic drill collars and shaft locations for past producing mines on the property can be seen below in Figure 1, and at the Company's website (www.ospreygold.com).

Holes G17-08, 09, 10, 11, and 15 were drilled near the historic Bluenose Mine shaft area testing the north limb of the Goldenville anticline across approximately 500 m of strike length. All of the holes in this area intersected multiple zones of gold mineralization, usually associated with quartz veining in argillite horizons. Hole G17-08 contained multiple mineralized horizons, including 6.90 m of 2.74 g/t gold from 231.10 m, and 0.70 m of 98.29 g/t gold from 267.5 m. This area saw less prior exploration, and less previous production than the main Stuart Shaft area and remains open to the east of hole G17-11, the easternmost hole drilled on the north limb, which returned 28.42 g/t gold over 0.55 m from 173.65 m, and multiple shallower gold intersections.

Table 1 — Drill results from 2017 Exploration Program

Figure 1 - 2017 Goldenville Drill Collar Locations

To view an enhanced version of Figure 1, please visit:
http://orders.newsfilecorp.com/files/5059/32973_a1519223035341_31.jpg

Table 2 — Drill Hole Collar Data

About Goldenville and Osprey

Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100% (subject to certain royalties) in all five properties, including the Goldenville Gold Project, Nova Scotia's largest historic gold producer. Goldenville hosts a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped) near the town of Sherbrooke, NS. All five properties in Osprey's current portfolio have a history of high-grade gold production. A copy of the Company's technical report titled "Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada" prepared by by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company's profile at www.SEDAR.com.

Samples from the 2017 exploration program are cut with a diamond saw, and placed in sealed bags and shipped to Bureau Veritas Commodities in Timmins, ON for sample preparation, with pulps subsequently shipped to Vancouver, BC for gold and multi-element ICP analysis. A Quality Control/Quality Assurance program, including the insertion of Duplicates, Standards, and Blanks, has been implemented. All quality control samples were acceptable. The 2017 exploration program is performed under the supervision Perry MacKinnon, P.Geo, Vice President of Exploration of Osprey and a 'Qualified Person' under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.

Additional information regarding Osprey and the Goldenville property is available under the Company's profile at www.sedar.com and at www.ospreygold.com.

For further information please contact:

ON BEHALF OF OSPREY GOLD DEVELOPMENT LTD.,

"Cooper Quinn"

Cooper Quinn, President and Director

For further information please contact Osprey at (236)521-0944 or cooper@ospreygold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Osprey within the meaning of applicable securities laws. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Osprey's public filings under Osprey's SEDAR profile at www.sedar.com.  Although Osprey has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.