Sego Resources Plans Additional Step-Out Drilling on the Southern Gold Zone at the Miner Mountain Copper-Gold Porphyry Project, Princeton, B.C.

Vancouver, British Columbia--(Newsfile Corp. - October 12, 2021) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") plans to extend a step-out fall-winter drill program with up to a 1,000 metre (m) diamond drill program at the Southern Gold Zone bulk tonnage target at the Miner Mountain Project near Princeton, BC. The newly discovered Southern Gold Zone, exposed at surface, intersected gold mineralization in five out of the six 2021 drill holes. Four diamond drill holes grade between 0.60 to 1.08 grams per tonne (gpt) gold over 59 to 93 m (Table 1) located on three sections spaced at 50 m apart (Figure 1). Bench-scale metallurgical gravity and leaching tests recovered 95.8% of the contained gold in a representative drill core sample. The Southern Gold Zone mineralization has no deleterious elements and very low values of base metals as confirmed by metallurgical testing (see NR August 11, 2021).

CEO J. Paul Stevenson comments, "We are looking forward to more exciting news from this recently discovered gold target. We have been able to determine that the mineralization starts at or near surface based on the north-south drill sections. We plan to extend the mineralization south of current sections and step-outs with new 50 m-spaced sections located east and west on either side of the drilled mineralization."

The Southern Gold Zone is hosted in medium to fine-grained diorite-monzonite that intrude sediments located to the south. The gold values are associated with very fine-grained disseminated pyrite that ranges from <1% up to 3% in the host rocks whereas less hydrothermal hematite replaces primary magnetite in mineralized drill intersections. Moderate to strong pervasive variable chlorite, K-feldspar, sericite, calcite, and epidote alteration assemblages are associated with the gold mineralization.

Several dozen representative samples have been collected from the 2021 drill holes for petrographic examination. The results will help to understand the genesis of the mineralization and aid exploration and will also clarify the relation of gold to pyrite and hematite and the high recovery of gold values extracted from the recent bench-scale metallurgical leach testing.

Figure 1. Southern Gold Zone 2021 drill holes results, proposed holes in A-F green and red short dash line marks gold mineralization boundary intersected in DDH 46; this figure is available at www.segoresources.com.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1056/99251_59aa06327420bac0_002full.jpg

Table 1. Diamond drill holes gold intersections at the Southern Gold Zone.

An initial bench scale 32.9 kg representative sample from DDH46 and DDH47 core (April drill program) was submitted to Met-Solve Laboratories Inc. to investigate recovery tests using gravity and leaching CN (cyanide) methods. The work concluded 9.8% of the gold reports to gravity concentration and 59.3% of the gold was recovered in 1 hour and 72.6 % after 3 hours using a CN leaching process. An impressive 95.8% of the gold was recovered from the composite sample with little further testing and minimum CN leachate and is used to recover gold in bulk deposits generally mined by open pit in Nevada, USA and elsewhere. The complete "Sego Resources Inc. Metallurgical Test Work Report" is available at www.segoresources.com.

Previous exploration prior to 2020 Sego has identified porphyry copper-gold targets at the Miner Mountain Project north of the Southern Gold Zone where deep roots of the mineralization have been structurally offset by a flat-fault zone that lies roughly 100 m to 130 m deep. The upper fault plate which hosts the known Cuba and other zones of mineralization could have been displaced an unknown distance probably from the north to the south. An example of the mineralization, the Cuba Zone, measures 750 m long by ~50 m wide and carries significant intersections such as 0.946% Cu 0.55 g/t Au 3.473 g/t Ag over 100.4 m in DDH21 (see NR March 12, 2012). In a future exploration program, deep holes are proposed to be collared north of the Cuba Zone and inclined steeply north that will test deep truncated mineralization below the mineralization and alteration of the Granby and Quintana Zones.

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 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. 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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