Osprey Completes Magnetics Survey at Goldenville Project, Deliniating Priority Drill Targets

Vancouver, British Columbia--(Newsfile Corp. - September 5, 2019) - OSPREY GOLD DEVELOPMENT LTD. (TSXV: OS) (OTCQB: OSSPF) (the "Company" or "Osprey") is pleased to announce it has completed a high-resolution unmanned aerial vehicle ("UAV") magnetic geophysical survey over the Goldenville Gold Project ("Goldenville") in Nova Scotia, located within the Meguma Terrane which hosts St. Barbara's recently acquired Moose River Consolidated Project (formerly Atlantic Gold). Fifty percent of the cost of the survey and interpretation are being funded through the Nova Scotia Mineral Resources Development Fund.

The detailed UAV survey provides important vectoring information to aid in the prioritization and delineation of additional drill targets for potential discovery of gold mineralization surrounding areas of known mineralization, and in areas with limited prior data, as they are obscured by glacial overburden or have limited prior exploration. The identification of important geophysical magnetic highs provide important indicators for drill target deliniation.

Osprey President Cooper Quinn stated, "We're excited to see the results from this survey. Integration of this new, high resolution data into our existing datasets has enabled us to refine some of our prospective areas into drill targets near the Goldenville Resource Zone, and in the Mitchell Lake zone to the west. Phyrrotite, a magnetic mineral, can be a vector to mineralization in the Meguma Terrane, and this survey shows magnetic highs in our three priority areas on the property. I'd also like to thank the Nova Scotia Mineral Resources Development Fund for helping fund this important work on the project, and minimizing Osprey's out of pocket expenditures. This, and the closing of the Company's recent private placement and the participation by Meguma Gold Corp. ("MegumaGold") have strengthened the Company's ability to actively explore these and other compelling targets within the Company's project portfolio."

Upcoming work

A similar survey will be completed shortly on the Caribou Gold Project, located less than 10 kilometers by road from St Barbara's Touqouy Mill. At Goldenville, prioritized targets generated in part from this survey will be incorporated into upcoming exploration and drill programs this fall, which will be announced as they commence.

Survey Details

Terrane Geoscience Inc. ("Terrane"), based in Halifax, Nova Scotia and partner MWH Geo-Surveys Ltd. ("MWH") flew survey lines at approximately 30 metre ("m") grid-line spacing for a total of an estimated 346 linear line-kilometers over the project areas. The survey utilized a multi-rotor UAV carrying a GEM Systems potassium magnetometer, flying 30-50 m above ground level collecting continuous readings from a low elevation for very high-resolution data.

About Goldenville

Osprey's most advanced project, Goldenville, was Nova Scotia's largest historic gold producer, and is located approximately 3 km by paved highway from the town of Sherbrooke, NS. 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). The Mitchell Lake Zone, approximately 3.5 km west of the resource area, is identified by the Company as a priority exploration area for additional work and follow-up drilling in 2019, because of the broader gold intercepts and lack of historic drilling that left large sections of untested potential.

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.

About 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.

The exploration program on the Company's properties is performed under the supervision of 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 (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.

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