Sego Resources Intersects 59 Metres and 88 Metres of >1 Gram/Tonne Gold (gpt Au) at Miner Mountain Project

Vancouver, British Columbia--(Newsfile Corp. - May 27, 2021) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is delighted to announce results from two diamond drill holes in the Southern Gold Zone of the Miner Mountain Porphyry Copper-Gold project near Princeton, BC. The Southern Gold Zone is an intrusion disseminated hosted gold zone discovered during the Company's 2020 field program (See NR July 7, 2020).

Shallow (DDH 46) and deeper (DDH47) holes tested the Southern Gold Zone, located on a central 160^o trending section with collars separated 78 m apart inclined 50^o south (Figure 1 ). Both intersected >1.0 gpt Au over 59 and 88 m from surface and include 2.94 gpt Au over 15.2 m and 2.44 gpt Au over 19.8 m (Table 1).

Table 1. Gold results in diamond drill hole collared in the Southern Gold Zone

CEO J. Paul Stevenson comments, "The Southern Gold Zone drill results are exciting! The zone is open in all directions except to the south with excellent potential to add bulk gold-bearing mineralization. The Southern Gold Zone is most likely a distal expression of a blind porphyry copper-gold mineralization within a broader area of porphyry copper-gold system at the Miner Mountain Project."

The two holes penetrate variable microdiorite, minor monzonite or monzodiorite, diorite, tuff or local bedded tuffaceous sediments. Variable textures in the generally fine-grained units exhibit episodic intrusion events, intrusion breccias, hornfelsed host rocks, many crackled and all overprinted by chloritic or K-feldspar dominant alteration assemblages. Brittle brecciation generates a chaotic fragmental texture and late carbonate veins, veinlets, microfractures or stockwork occur throughout most rock types.

Below ~5 to 10 m depth both holes 46 and 47 contain 1 to 2% pyrite. An ~2 mm filigree grain of electrum occurs in a massive very fine-grained K-feldspar vein in hole 46 at ~29.0 m otherwise gold is not visible in the remaining portions of the holes. K-feldspar also occurs as irregular patches or fillings, selvages, veins or dikelets surrounded by pervasive chlorite alteration where both assemblages normally contain disseminated pyrite, blebs or cut by pyrite fractures. In the higher-grade zone (>2 gpt Au) better grades are associated with common K-feldspar-pyrite alteration whereas chlorite dominate alteration ranges from >0.1 to 1 gpt Au. Blebs of chalcopyrite occur sporadically in the elevated gold zone particularly in the deeper hole 47 (Table 1) and may indicate deeper, more typical porphyry Cu-Au mineralization.

The style of the Southern Gold Zone is a distal gold mineralization most likely associated with a deeper or lateral alkali distal porphyry Cu-Au system. The zone overlaps the north margin of an ~500 m diameter magnetic high thought to reflect a subjacent intrusion. Magnetite content is very low or none-existent in both drill holes.

Future drilling will be oriented southeast to test the depth extent of the grade and width beneath the zone and sub-parallel sections on either side of holes 46 and 47 to test the lateral extension of the gold zone. Petrology on select drill core and preliminary metallurgical testing on drill rejects will also be completed in the coming weeks.

Figure 1. The location and Au grade/lengths of DDH 46 and 47; also proposed holes (A-C).

To view an enhanced version of Figure 1, please visit:
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Figure 2. Diamond Drill Holes 46 (right) and 47 (left) viewing east in cross-section with collars 78 m apart.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/1056/85369_figure2.jpg

maps are available in news release at www.segoresources.com

The Miner Mountain Project combines alkalic porphyry copper-gold mineralization in the Cuba and other zones and the unusual gold mineralization in the Southern Gold Zone which may be distal to an alkalic copper-gold porphyry.

Quality Assurance / Quality Control

Drill core and rock samples were shipped to MSALABS in Langley, BC for sample preparation and analysis. MSALABS is ISO/IEC 17025 and ISO 9001 certified. Samples were analyzed using an aqua regia digestion with an ICP finish.

Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

This news release was reviewed and approved by Ron Britten, Ph.D., P.Eng., a Qualified Person under NI 43-101.

About the Project:

Sego is 100% owner of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056 hectares in size and is located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band on whose Traditional Territory the Miner Mountain project is situated. Sego has received an Award of Excellence for its reclamation work at Miner Mountain.

For further information please contact:

J. Paul Stevenson, CEO (604) 682-2933
ceo@segoresources.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. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.

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