Pasofino Gold Limited Selects Drilling Contractor for the Dugbe Gold Project and Appoints the Feasibility Study Lead Consultants

Toronto, Ontario--(Newsfile Corp. - September 24, 2020) - Pasofino Gold Limited (TSXV: VEIN) (FSE: N07) ("Pasofino" the "Company") is pleased to announce that it has awarded the initial drilling contract to Cestos Investments Incorporated ("Cestos Drilling"), for an initial 15,000 metres on the Dugbe Gold Project ('the Project') in Liberia. DRA Global have been awarded the Feasibility Study (FS) lead consultancy role and SRK (UK) have been awarded the Environmental and Social Impact Assessment (ESIA) Study.

Project Development Highlights

• Management and technical team are in-country and preparing for mobilisation.
  
  
• Selected Drill contractors Cestos Drilling are in country, with rigs, carrying out final preparations for the program.
  
  
• Company aims to increase the current 2.3 Moz Indicated and 1.3 Moz Inferred Mineral Resources.
  
  
• The FS has commenced and is planned for completion in Q3 2021 targeting a production rate of between 200,000oz pa and 250,000oz pa.
  
  
• Road contractor mobilised for the rehabilitation of the access road to site.
  
  
• Camp infrastructure has been ordered and is on route to site.

Ian Stalker, CEO - Africa Operations, commented; "Building on the momentum of our recent news, our management and technical teams are now on the ground in Liberia. In addition, we have commissioned key contractors, to match our timetable of having drills turning at the project by the end of the last Quarter 2020. Furthermore, the FS and ESIA consultancy contracts have been awarded to DRA Global and SRK (UK) respectively, both highly regarded Engineering Consultants in their respective fields We have identified where additional ounces are expected to be found, and the initial resource expansion and infill drilling will be focused on the Tuzon and Dugbe F deposits which are both 'open' on strike. It is also noted that there is a wealth of drill ready targets that require drilling on the property.

We have a great platform of quality work completed by our partners Hummingbird Resources historically on the project, which will allow us to accelerate work and unlock the value of the Dugbe Gold Project".

Drill Program and Exploration targets

Cestos Drilling have four track-mounted rigs in country and were selected based on the suitability of their equipment and services. The initial contract is for 15,000 metres. A second contract is planned to be issued in Q2 2021 for follow-up drilling. The aims of the drilling program are as follows:

• Expand the Tuzon deposit on strike focussing on the 'high grade zone B' which is open. This zone already hosts an Indicated resource 1.05 Moz gold with an average grade of 1.72 g/t Au^[1].
• Infill drilling at the Dugbe F deposit to convert the bulk of the Inferred resources to Indicated. The Inferred resource grades 1.57 g/t Au and host 0.82 Moz of gold¹.
• Coring at the 'drill-ready' targets of Tiehnpo and Sackor where gold has been identified in existing trench and limited drilling respectively¹.
• Drilling at new targets prioritized following a rigorous target generative exercise using all available geochemical, geophysical and satellite data. Drilling at these targets is planned for 2021.

Mobilisation of the first two drilling rigs will commence in October 2020; one to begin the infill drilling program at the Dugbe F deposit and the other to carry out the first drilling at the Tiehnpo target (figure 1) where trenches completed by Hummingbird in 2012 returned significant gold-anomalous intervals. Rigs 3 and 4 will mobilize in January 2020 by which time the improvements to the access road to the Tuzon deposit from Greenville is planned to be completed. The rigs will then begin the drilling at Tuzon while completing the program at Dugbe F. Initial drilling at Tuzon will target the potential extension of the 'high-grade zone B' and then switch to infill drilling with the aim of defining a portion of Measured Mineral Resources. In addition, drilling at the Sackor target is planned during H1 2021 to step out on previous gold bearing intersections and potentially provide sufficient data for resource estimation.

The Company believes that additional gold deposits may be present on the underexplored 2,355 km² project area which is predominantly underlain by prospective 'Birimian' rocks or their equivalents. To provide a 'pipeline' of new drill targets Pasofino has completed an interpretation of all exploration and remotely sensed data and has prioritized four new target areas all of which have artisanal gold workings recognizable in satellite data. These are the Gmayenken, DSZ East, Perluken and Nemo Creek South targets (please see Figure 1). Soil sampling totaling 3500 samples will start in October to define areas for trenching and drilling during 2021.

Figure 1. Map showing the Dugbe Gold Project area and the location of the deposits and targets

To view an enhanced version of this graphic, please visit:
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Feasibility Study

The Company has awarded the lead engineering and design contract to DRA Global for the completion of a FS on the Project. SRK has been awarded the lead consultancy for the ESIA. The FS will investigate the potential to produce between 200 and 250 thousand ounces of gold per annum. The Company plans to complete the FS during Q3 of 2021.

Access Road Rehabilitation

A 48 kilometer section of the Greenville to Tuzon road requires rehabilitation and replacement of some of the bridges. The road contractor Westwood International has been awarded the work and has already mobilized to site to start preparation for this work. The completion of this road construction is key to allowing access to the Tuzon deposit and is planned for access by the end of December 2020. This however will not slow down the work program as drilling on the Dugbe F deposit is planned for start in early November 2020 and the first round of drilling at the Thienpo prospect is also to start in November 2020.

Qualified Persons Statements

Scientific or technical information in this disclosure that relates to the Company's exploration activities and Mineral Resources estimates is based on information compiled or approved by Mr. Andrew Pedley. Mr. Pedley is a full-time consultant of Pasofino Gold Ltd. He is a member in good standing with the South African Council for Natural Scientific Professions (SACNASP) and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Mr. Pedley consents to the inclusion in this disclosure of the information, in the form and context in which it appears.

About the Dugbe Gold Project

The Dugbe Project is located in southern Liberia and situated within 'Birimian' aged rocks which are host to the majority of West African gold deposits. To date two gold deposits have been identified; Dugbe F and Tuzon. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralisation in the area. The Project comprises an area of 2,355 km2. A large amount of exploration in the area was conducted by Hummingbird including 74,497 m of diamond coring. 70,700 m of this was at the Dugbe F and Tuzon deposits, discovered by Hummingbird in 2009 and 2011 respectively. Both deposits outcrop at surface and may be amenable to open-cut mining. A Preliminary Economic Assessment ("PEA") was carried out for the Dugbe F and Tuzon deposits by WAI in 2013 for Hummingbird PLC and with further work carried out subsequently including metallurgical, geotechnical and hydrological work, which will provide a foundation for the Feasibility Study.

In addition, there are a number of prospects within the Project, including 'Sackor' where gold mineralisation has been intersected in drill-holes and where additional drilling is planned. No other prospects have been drill-tested to date. At some prospects extensive trenching identified anomalous levels of gold that require drill-testing. An aggressive exploration programme to test the prospects is planned by the Company. In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilization of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50% and the Government of Liberia is granted a free carried interest of 10% in the Project. Over $70 million has been spent by Hummingbird on the Project.

About Pasofino Gold Ltd.

Pasofino Gold Ltd. is a Canadian-based mineral exploration company listed on the TSX-V (VEIN) and FSE (N07). Pasofino is earning a 50% interest in the advanced-stage Roger Gold-Copper Project located in Quebec's prolific Abitibi Greenstone Belt.

Through its recently announced acquisition of ARX Resources Limited, Pasofino has an option to earn a 49% economic interest (net of the Government of Liberia's carried interest) in the Dugbe Gold Project.

For further information, please visit www.pasofinogold.com or contact:

Steve Dunn, President & CEO
T: (416) 361-2827
E: sdunn@pasofinogold.com

Cautionary Statements Regarding Forward-Looking Statements.

This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the timing for filing and final clearance of the Qualifying Prospectus, the use of proceeds of the Offering, the ability to raise the funds to finance its ongoing business activities including the acquisition of mineral projects and the exploration and development of its projects. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the ability to successfully file and obtain approval for the Qualifying Prospectus, the ability to obtain all requisite regulatory approvals in respect of the Qualifying Prospectus, the ability to apply the proceeds of the Offering as intended, the results of exploration activities; the ability of the Company to complete further exploration activities; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

^[1] Dugbe Gold Project, Liberia NI 43-101 Technical Report dated 19 September 2020, a report by SRK Consulting.

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