Japan Gold Reports High-Grade Rock Samples and Commences Geophysical Exploration Programs over the Kitano-o Gold Prospect

Vancouver, British Columbia--(Newsfile Corp. - July 29, 2019) - Japan Gold Corp. (TSXV: JG) ("Japan Gold" or the "Company") is pleased to report high-grade rock samples collected from historic mine dumps up to 60.8 g/t gold from the eastern side of the Kitano-o Gold Prospect. A prospect-scale gravity survey has commenced and plans for CSAMT geophysical surveys to further refine drill targets within the Kitano-o Gold District are well advanced. The Company announced commencement of Phase 1 scout drilling on the western and central parts of the 3-kilometre-long mineralized Kitano-o prospect in its news release of July 25, 2019.

The Kitano-o prospect is located within the Kitano-o Gold District, a 7 x 3 kilometre area which incorporates six old mines and workings, Figure 1. In excess of 96,000 ounces of gold at a grade of 5.9 g/t¹ was produced prior to the government-imposed moratorium and mine closure in 1943. Gold was won largely from shallow open-pits in gold-bearing eluvium, and from selective hard-rock mining of narrow sub-sinter quartz veins and stockworks. Subsequently, much of the in-situ high-level quartz vein outcroppings across Kitano-o were mined to depths of 90 metres in underground workings.

The presence of outcropping sinter at Kitano-o prospect, implies the entire epithermal system is preserved, the numerous mineralized veins and stockworks excavated directly under the sinter indicate significant amounts of gold has leaked from boiling-zones at depth to the upper parts of the hot-spring system. The target at the Kitano-o prospect are these boiling-zones where most of the gold precipitates in epithermal systems and these generally occur from 150 metres to 250 metres beneath the paleo-water table (sinter level), and downward towards the lower basement contact.

Rock Chip Results

Work to refine drill targets in the eastern part of the Kitano-o prospect has included detailed geological mapping of the historic workings and the majority of samples were sourced from mine dumps and vein sorting areas located around these workings. Samples of quartz vein dump, sub-crop and float material were collected along an 800-metre east-west section of the east Kitano-o workings.

Of the 75 rock chips collected from east Kitano-o, 16 mine dump samples gave gold assay results greater than ≥2.5 g/t with a peak assay of 60.8 g/t . Noteworthy results include:

Quartz vein samples show well-developed colloform-crustiform textures containing bands of disseminated fine-grained black sulphide mineralization, termed 'ginguro'. These veins were mined from shallow underground workings located immediately below the sinter [refer to Figure 2 and Plates 1 to 9].

Also of note in these samples and across the 3 kilometre mineralized system at the Kitano-o prospect are the low silver to gold (Au:Ag) ratios indicating the mineralizing event has a gold-bias relative to silver.

Pathfinder elements such as antimony are typically deposited in the top of the epithermal hot-spring systems and are well represented in mineralized sinter and sub-sinter samples collected at Kitano-o [Figure 3 and Plates 10 to 14].

East Kitano-o lies proximal to the basement unconformity / inferred graben-margin and emphasizes the possibility for unconformity-style vein targets akin to those at the Hishikari mine in Kyushu.

Results at east Kitano-o are consistent in tenor to samples previously collected at central and west Kitano-o and the entire 3-kilometre long system remains untested for deeper 'boiling zone' targets. Such targets are currently being drill tested at central and west Kitano-o.

Geophysics

The Company has commenced prospect-scale gravity surveying in order to better define the basement architecture and how this relates to plumbing or feeder structures of the epithermal vein system at Kitano-o. If deemed useful, other prospects in the Kitano-o Gold District will also be surveyed.

To further refine drill targeting, prospect scale CSAMT geophysical surveys are planned to commence in the near future at Kitano-o. Core samples taken from the current Phase 1 drilling at west and central Kitano-o will be petro-physically analyzed to better calibrate the CSAMT survey results and vector ongoing drilling.

Sampling Methods

Rock results presented herewith in this news release and accompanying figures are from 1-5 kg selected grab of outcrop, mine dump, sub-crop and float samples. The grab samples of float and dump material reported in this announcement are believed to originate from the underlying bedrock. The Company cautions that grab samples are selective by nature and may not be representative of typical mineralization on the property. Sample preparation and assaying were done by Intertek Testing Services (ITS), Muntinlupa City, Philippines. Gold was analyzed by 50 gram-charge Fire Assay and AAS finish. 48 multielement analysis including silver were done by four-acid digest and ICP-AES/MS determination.

The laboratory inserts its own blank, standards & sub-split pulp duplicates for Quality Control and reports these results accordingly. Results fall within acceptable levels of accuracy and precision.

For further information and photos of the samples, please visit www.japangold.com

Reference:

¹ Garwin, Hall, Watanabe, (2005). Tectonic Setting, Geology, and Gold and Copper Mineralization in Cenozoic Magmatic Arcs of Southeast Asia and the West Pacific. Economic Geology 100th Anniversary Volume, pp. 891-930.

Quartz veins in Figures 2 & 3 referenced from: Bamba T. & Saito M., 1956. Geology and Gold-silver Deposits of the Kitano-o and Several Other Mines, Ikutahara Gold Mining District, Kitami Province, Hokkaido. Geological Survey Institute Monthly Report Volume 10. No. 7.

Qualified Person

The technical information in this news release has been reviewed and approved by Japan Gold's President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, FSEG, who is a Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Japan Gold Corp.

"John Proust"
Chairman & CEO

About Japan Gold Corp.

Japan Gold Corp. is a Canadian mineral exploration company focused solely on gold and copper-gold exploration across the three largest islands of Japan: Hokkaido, Honshu and Kyushu. The Company holds a portfolio of 13 Gold Projects which cover areas with known gold occurrences, a history of mining and are prospective for high-grade epithermal gold mineralization. The Company also holds a portfolio of 5 Lithocap Projects which could indicate the presence of porphyry mineralization. Japan Gold's leadership team has decades of resource industry and business experience, and the Company has recruited geologists and technical advisors with experience exploring and operating in Japan. More information is available at www.japangold.com or by email at info@japangold.com.

Japan Gold Contacts

John Proust
Chairman & CEO
Phone: 778-725-1491
Email: info@japangold.com

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking statements relating to expected or anticipated future events and anticipated results related to future partnerships and the Company's 2019 gold exploration program. These statements are forward-looking in nature and, as a result, are subject to certain risks and uncertainties that include, but are not limited to, general economic, market and business conditions; competition for qualified staff; the regulatory process and actions; technical issues; new legislation; potential delays or changes in plans; working in a new political jurisdiction; results of exploration; the timing and granting of prospecting rights; the Company's ability to execute and implement future plans, arrange or conclude a joint-venture or partnership; and the occurrence of unexpected events. Actual results achieved may differ from the information provided herein and, consequently, readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this News Release. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

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Figure 3: Kitano-o Prospect: Antimony in Rock Samples & Historic mine Workings on Simplified Geology

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Plate 2: SAMJ10598. 33.3 g/t Gold, 78.4 g/t Silver, 49 g/t Antimony. Colloform banded chalcedony vein with alternating crustiform bands of microcrystalline quartz. Greyish coloured vein fill contains very fine dustings of sulphide. Sample sourced from mine dump in east Kitano-o.

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Plate 3: SAMJ10616. 21.9 g/t Gold, 7.6 g/t Silver, 35 g/t Antimony. Quartz vein breccia mine dump sample from east Kitano-o. Fine-grained sulphide assemblage around the breccia clasts has been completely oxidised by surficial weathering.

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Plate 4: SAMJ10592. 11.9 g/t Gold, 8.4 g/t Silver, 35 g/t Antimony. Crustiform-colloform banded quartz-adularia vein mine dump sample from east Kitano-o.

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Plate 5: SAMJ10596. 8.1 g/t Gold, 14.2 g/t Silver, 48 g/t Antimony. Colloform-crustiform banded quartz-adularia vein mine dump sample from east Kitano-o. Orange iron oxide-bearing bands in vein (top) are after oxidised, very fine-grained sulphide.

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Plate 6: SAMJ10617. 4.8g/t Gold, 2.1g/t Silver, 30 g/t Antimony. Lattice-blade textured quartz vein mine dump sample from east Kitano-o. This texture forms from boiling hydrothermal fluids, a critical mechanism for high-grade gold deposition.

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Plate 7: SAMJ10588. 4.2 g/t Gold, 6.8 g/t Silver, 46 g/t Antimony. Crustiform-colloform banded quartz-adularia vein mine dump sample from east Kitano-o. Orange-brown iron oxides along quartz bands are after oxidised fine-grained sulphide.

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Plate 8: SAMJ10614. 9.87 g/t Gold, 11.2 g/t Silver, 142 g/t Antimony. Crystalline quartz sealed vein in altered rhyolite volcaniclastic sediment from east Kitano mine dump. Quartz veins / veinlets such as this are common on mine dumps, sub-crop and outcrop, across the Kitano-o Prospect.

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Plate 9: SAMJ10621. 8.2 g/t Gold, 16.4 g/t Silver, 36 g/t Antimony. Centimetre-wide crystalline quartz stockwork-veins in silica-replaced rhyolite volcaniclastic from east Kitano-o. Sample sourced from mine dump in east Kitano-o.

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Plate 10: SAMJ10962. <0.002 g/t Gold, 0.17 g/t Silver, 147 g/t Antimony. Wood and plant fossils in sinter sub-crop. Part of a large accumulation of sinter boulders in the western portions of east Kitano-o. These fossils indicate the sinter formed at the paleosurface.

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Plate 11: SAMJ10629. 0.02 g/t Gold, 0.2 g/t Silver, 118 g/t Antimony. Brecciated sinter and rhyolite volcaniclastic sediment (hosted in a possible eruption breccia proximal to hydrothermal vent?).

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Plate 12: SAMJ12140. 0.02 g/t Gold, 0.1 g/t Silver, 87.6 g/t Antimony. Laminated sinter boulder float from east Kitano-o. Very fine-grained sulphides present along the grey-coloured sinter laminations are partially oxidised to hematite (orange-red).

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Plate 13: SAMJ10605. 4.0 g/t Gold, 7 9g/t Silver, 143 g/t Antimony. Chalcedony and sulphide (pyrite-marcasite-silver sulfosalts) replacement of complex fragmental-textured rock (eruption breccia?) from east Kitano-o mine dump.

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Plate 14: SAMJ10589. 3.81 g/t Gold, 39.0 g/t Silver, 239 g/t Antimony. Dense chalcedonic silica replacement of brecciated rhyolite lava / intrusive dome. Contains disseminated blue-grey silver sulfosalts and minor pyrite-marcasite mineralisation, locally rimming rhyolite clasts. Sample sourced from mine dump in east Kitano-o.

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