Osprey Commences Exploration Program at Caribou Gold Project, Nova Scotia

Vancouver, British Columbia--(Newsfile Corp. - May 3, 2018) - OSPREY GOLD DEVELOPMENT LTD. (the "Company" or "Osprey") (TSXV: OS) (OTCQB: OSSPF) is pleased to announce the commencement of its 2018 exploration programs on the ground in Nova Scotia, Canada. The first phase of work has begun at the Caribou Gold Project ("Caribou"), located approximately 80 kilometers northeast of the city of Halifax, Nova Scotia.

"We are happy to start our 2018 exploration with work at the Caribou project. Through the winter, we've been busy with desktop data compilation and interpretation, and have prioritized several key areas where we believe near surface mineralization may be present within the host rock argillites," said Company President Cooper Quinn. "This program will look to advance these areas, especially the Dixon-Truro Trend and Elk Zone targets, to a drill ready stage. We'll also be working to identify additional stockwork or "fissure vein" style mineralization at Caribou, as these zones historically provided some of the best grades and widths in the area, both in historic production records and previous exploration."

Figure 1 - Caribou Project overview, showing surface expression of veining, and overall anticline structure. The Elk and Dixon-Truro trend will be the focus of near-term exploration.

To view an enhanced version of Figure 1, please visit: http://orders.newsfilecorp.com/files/5059/34444_a1525324992306_47.jpg

This initial phase of work at Caribou will consist of re-analysis of historic core, surface sampling and mapping, followed by mechanical trenching. Analysis of previous drilling will start on two zones where previous work left large intervals of potentially mineralized sediments outside the gold-bearing quartz veins unsampled. The Dixon-Truro Trend on the south limb of the anticline was drilled by Seabright Exploration in 1988; the Elk Zone, on the north limb of the anticline at the boundary of the Goldenville and Halifax sedimentary formations, was subject to a limited drill program in 1987, with five holes focused on one vein target. Several holes from each zone will have unsampled zones split and submitted for analysis. A mechanical trenching program will follow this work, and will be focused on extensions of both zones with the goal to fully develop new drill targets on the property.

About the Caribou Property

• Strategically located, 8 kilometres north of Atlantic Gold's Touquoy Mine and Moose River Consolidated mill site and completely surrounded by Atlantic Gold claimholdings (see Figure 1 below);
• Historic drill results in stockwork zones include 11.2 metres grading 10.86 grams per tonne ("g/t") gold in Hole CM-98-01 and 9.8 metres grading 12.2 g/t gold in Hole SB-88-11;
• Project area includes broad areas of Halifax Group argillites, a favored host rock for disseminated gold and which at the Caribou Project are largely unexplored;
• Reported past production of over 100,000 gold ounces between 1869 and 1955, as reported in a historical technical report prepared for Scorpio Gold Corporation by Guy Mac Gillivray, P.Geo. of W.G. Shaw and Associates Limited in a report dated October 8, 2008 (the "Historical Report");
• An inferred historic resource of 94,763 ounces of gold in 350,305 tonnes grading 8.81 g/t gold, uncut (the "Historic Estimate"); and
• Using a grade cap for gold of 47.0 g/t (to compensate for nugget effect) the Historical Estimate for the Caribou Gold Property is 350,305 tonnes grading 5.83 g/t gold, or 67,425 ounces of gold;

The reader is cautioned that a qualified person has not done sufficient work to classify this Historical Estimate as current resources and Osprey is not treating this Historical Estimate as a current mineral resource. While this estimate was prepared in accordance with National Instrument 43-101 and the "Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines" in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The Historical Estimate is relevant to obtain a reference to mineral potential present on the property. The Company has not undertaken any verification of the historical data upon which the historical estimates are based on.

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 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.

A Quality Control/Quality Assurance program, including the insertion of Standards and Blanks, has been implemented. The 2018 exploration program on the Company's properties is performed under the supervision of Perry MacKinnon, P.Geo, Vice-President of Exploration of Osprey Gold Development Ltd. 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 (778)986-8192 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.