Damara Gold Corp. announced that it has entered into purchase agreement to acquire a 100% undivided interest in 203 map designated mineral exploration claims covering approximately 9,675 hectares located in the Labrador Trough region of Quebec, (collectively the VanLab Property). The Purchase Agreement, dated December 21, 2022, was completed with two arm's length sellers (the Sellers).

Subject to TSX Exchange approval, Damara will acquire the Sellers' 100% interest in and to the VanLab Property in exchange for the following consideration: the issuance by the Damara to the Sellers on within 5 business days of Exchange approval (the Closing Date) an aggregate of 4,000,000 units. Each Unit shall be comprised of one common share (a Consideration Share) in the capital of Damara and one non-transferable share purchase warrant. Each Warrant shall entitle the Sellers to acquire one additional common share in the capital of Damara at an exercise price of $0.25 for a period of 36 months from Closing; and the Damara will grant to the Seller of a 2% net smelter return royalty (the NSR Royalty on Closing.

Pursuant to the terms of the Purchase Agreement the Sellers may be entitled to a 0.5% net smelter return royalty in any interest Damara acquires in additional claims within an area of interest of the VanLab Property. The Consideration Securities will be subject to a statutory four month and one day hold period under applicable securities laws from the Closing Date.