Prospector Discovers Multiple New High-Grade Gold Occurrences at Toogood, Newfoundland

Vancouver, British Columbia--(Newsfile Corp. - August 25, 2022) - Prospector Metals Corp. (TSXV: PPP) (OTCQB: ETHOF) (FSE: 1ET0) ("Prospector" or the "Company") is pleased to announce additional high-grade grab samples and two new occurrences as part of the 2022 exploration program at the Toogood property which encompasses 118km² of mineral claims on New World Island, Newfoundland.

Highlights

• The new Vic occurrence has been identified though prospecting along the trend of the Virgin Arm Fault/Dunnage Melange contact 1 km southwest of the Sherwood Zone. Prospecting located quartz rubble/subcrop in dug pits that returned assays of 67.23, 58.89, 20.87, and 3.26 g/t Au (Figure 1 and 3).

• Follow-up prospecting has confirmed the presence of gold at the newly named Chimo prospect located 350m SE of Sherwood where historical outcrop sampling of felsic dykes returned assays including 127, 82.2, and 10 g/t Au. Three new felsic dyke outcrop occurrences were located and sampled. Of the 28 new grab outcrop samples collected during the 2022 season, significant assays included 29.52, 5.91, 3.47 g/t Au taken from the old pit and historical trench, 5.16 g/t Au east of the road, and 1.64 g/t Au west of the pond (Figure 1 and 3). Visible gold was identified in both the 5.91 and 3.47 g/t Au samples (Figure 2). In addition, 14 of 28 returned assays above 0.2 g/t Au. The felsic dykes located at the Chimo prospect exhibit similar characteristics to the gold bearing Quinlan dyke and remain open in all directions.

• At Sherwoood, 28 outcrop/subcrop samples were collected during prospecting in the 2022 season and returned significant assays of 15.29, 13.34, 13.31,12.94, 6.34 g/t Au within quartz vein material and felsic dykes likely associated with the Virgin Arm Fault system (Figure 1-3). Visible gold was identified in samples 806670 and 802045 which assayed 15.29 g/t Au and 13.31g/t Au respectively. 9 of 28 returned results above 1 g/t Au, and 17 of 28 above 0.2 g/t Au. These samples occur over ~150m of strike length and mirror the trend of the soil anomaly identified in the area during the 2021 exploration program.

• The new occurrences confirm the presence of gold within the Virgin Arm Fault system which can be traced for nearly 5km across the Toogood Property. In addition, the highly prospective Dunnage Melange and its fault contact, which can be traced for 6.8km across the Toogood Property, remains largely unexplored due to limited prior geological knowledge and mapping. Both represent remarkable prospective targets that have seen very little exploration to date.

• Prospector received a new Exploration Approval in August for drilling and trenching at the Toogood property for the 2022-2023 seasons.

Alex Heath, CFA., President and CEO stated: "These additional high-grade gold results from our prospecting program continue to add significant discovery potential at Toogood. With large areas of untouched ground, we are just getting started and are excited to continue exploring untested areas."

Figure 1. 2022 High-grade gold samples from Toogood Gold Project, Newfoundland

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/1564/134784_e17805455442c9d0_002full.jpg

¹ Historical assay values have not been independently verified by the Company and a potential investor should not place undue reliance on historical results when making an investment decision, nor should they be used as the sole criterion for making investment decisions. There is no assurance that the Company can reproduce such results or that the historical results described therein will be realized. ² "Best surface samples" are grab / select samples and not necessarily representative of mineralization hosted on the property.

Figure 2. Sample 701798 from Chimo (5.91 g/t) and 802045 from Sherwood (13.31 g/t) with visible gold

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/1564/134784_figure2.jpg

Note that these photos are not intended to be representative of gold mineralization

Figure 3. 2022 High-grade gold samples from the Virgin Arm Fault Zone, Newfoundland Toogood Gold Project

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https://images.newsfilecorp.com/files/1564/134784_e17805455442c9d0_007full.jpg

Sherwood Zone Geology

The Sherwood Zone was identified through prospecting (2.11 g/t float sample in the Virgin Arm Fault vicinity). Subsequent follow-up soil sampling identified a large arsenic in soil anomaly. Subsequent trenching, sampling and detail mapped identified complex structure, felsic dyke outcrops, strong silicification and arsenopyrite mineralization with a broad zone NE trending zone associated with the Virgin Arm Fault. Three areas were stripped at the Sherwood zone revealing a complex structural geology with intense faulting striking at 20-30 degrees as well as later meter-scale, roughly E-W (80-105 degrees) dextral offsets. Heavily sheared and locally strongly quartz veined felsic dykes were also mapped in two of the three trenches in additional to presence of localized fault gouge Subsequent drilling (22SH026 totaling 151 m) tested the soil anomaly and the felsic dyke occurrences in the vicinity of the Virgin Arm Fault (Figure 1). The hole collared in shale and successfully encountered significant fault gouge textures and brecciation with variable amounts of felsic dyke/volcanics, greywacke fragments, quartz ± carbonate veining with trace amounts of pyrite and arsenopyrite. Significant assay results include 0.70 g/t over 2.4m from 18m including 0.89 g/t over 1.4m. These initial results confirm the presence of gold within the Virgin Arm Fault system which can be traced for nearly 5km across the Toogood Property and represents a promising target for future exploration.

Toogood Gold Property Geology Overview

The Toogood Project lies at the northeast extent of the Exploits Subzone (Dunnage Zone) of Central Newfoundland and is underlain mostly by the Ordovician Dunnage Melange and the Badger Belt. The Exploits Subzone area trends 200km northeast / southwest across the island of Newfoundland, and hosts most of the significant gold deposits in the province including Marathon Gold's Valentine Project which hosts 3.09 Moz. M&I at 1.75 g/t. Gold mineralization appears constrained to discreet NNE and ENE structures which host quartz veining of variable orientations within rheological and physio-geochemically favourable host units. The intersections of these NNE and ENE structures appear to be significant in focusing mineralizing fluids, and potential relationships can be observed at the Quinlan, Titan and Sherwood zones. Auriferous quartz veins observed on the property to date are generally mm-cm in scale, NW-NNW striking and moderately to steeply dipping.

Analytical Procedure

All 2022 samples assayed and pertaining to this press release were completed by Eastern Analytical Limited (ISO 17025:2005) located at Springdale, Newfoundland by fire assay with an AA finish method.

Qualified Person

The technical content disclosed in this press release was reviewed and approved by Jo Price, P.Geo., M.Sc., MBA, VP Exploration of Prospector, and a Qualified Person as defined under National Instrument NI 43-101 ("NI 43-101").

About Prospector Metals Corp.

Prospector Metals Corp. is a Discovery Group Company with a business model focussed on district scale, early-stage exploration of gold and base metal prospects and create shareholder value through new discoveries. The Company's focus is to identify underexplored or overlooked mineral districts which display important structural and mineralogical similarities with well-endowed mining camps. The majority of the projects acquired by Prospector occur in Ontario, Canada, which is a tier-1 mining jurisdiction with abundant overlooked geological regions with high mineral potential. Prospector engages proactively with local and Indigenous rightsholders and seeks to develop relationships and agreements that are mutually beneficial to all stakeholders.

On behalf of the Board of Directors,
Prospector Metals Corp.

Alex Heath, CFA
President & CEO

For further information about Prospector Metals Corp. or this news release, please visit our website at prospectormetalscorp.com or contact Alex Heath at 604-354-2491 or by email at alexh@prospectormetalscorp.com.

Prospector Metals Corp. is a proud member of Discovery Group. For more information please visit: discoverygroup.ca

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including, but not limited to, statements regarding the Company's plans with respect to the Company's projects and the timing related thereto, the merits of the Company's projects, the Company's objectives, plans and strategies, and other project opportunities. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective,", "strategy", "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the risk of accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, or the possibility that the Company may not be able to secure permitting and other agency or governmental clearances, necessary to carry out the Company's exploration plans, risks and uncertainties related to the COVID-19 pandemic and the risk of political uncertainties and regulatory or legal changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects

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.

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