Osprey Provides Progress Update for Ongoing Diamond Drill Program at the Goldenville Gold Project, Nova Scotia

Vancouver, British Columbia--(Newsfile Corp. - December 16, 2019) - OSPREY GOLD DEVELOPMENT LTD. (TSXV: OS) (OTCQB: OSSPF) (the "Company" or "Osprey") is pleased to provide an update on the ongoing diamond drill program currently underway at the Goldenville Gold Project near Sherbrooke, Nova Scotia. Approximately 1,100 metres have been completed in 6 holes, with all drilling to date testing resource expansion in targets outside the known resource area of the Goldenville Main Zone.

Key points:

• 1,100 metres of a planned 1,500 metre program completed in the vicinity of the Goldenville resource; along strike in both directions, as well as on the north and south limb of the Goldenville Anticline,
• Drilling will now shift to the Mitchell Lake Zone, 3.5 kilometres west of the Goldenville resource area to test additional near surface, disseminated mineralization targets, where approximately 500 metres of drilling are planned to begin to test the nearly 1 kilometre long geophysical anomaly,
• The program is focused on identifying near surface gold mineralization, expanding high grade vein hosted mineralization, and testing for additional lower grade disseminated gold within previously underexplored argillite sequences,
• Several batches of samples have been sent for gold and multi-element analysis; results will be reported as they become available.

"The drill program has been going smoothly, and the UAV magnetometer survey completed earlier this year was utilized for targeting many of these holes has been effective in locating areas of the target argillite," said Company President Cooper Quinn. "Should this geophysical technique prove successful, we'd expect to expand our geophysical surveying over our other project areas for additional drill targeting. We're also excited to get to the second part of this program and move the drill rig to test new anomalies in the Mitchell Lake Zone. Drilling at relatively underexplored Mitchell Lake Zone has the potential to be a value driver for the project as a whole should drilling continue to intersect mineralization similar to that encountered in 2017."

The Goldenville Gold Project ("Goldenville") is located within the Meguma Terrane, less than 20 kilometres from St. Barbara Limited's Cochrane Hill deposit, part of the recently-acquired Moose River Consolidated Project (formerly Atlantic Gold). 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).

Figure 1. Drill collar locations for holes in the Mitchell Lake Zone superimposed on UAV Magnetics (First Vertical Derivative)

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5059/50814_054fde4664d64925_001full.jpg

Analytical results from this drilling program will be reported as results become available.

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. 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.

A Quality Control/Quality Assurance program, including the insertion of Standards and Blanks, has been implemented. The 2019 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 and has reviewed and approved the technical content of this release.

Additional information regarding Osprey and the Goldenville and Caribou properties 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 the completion of planned expenditures, the ability to complete exploration programs, 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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