GFG Resourced Inc. announces that it has received assays from the first hole from its 2021 Phase 1 drill program at the Montclerg Gold Project (the “Project” and/or “Montclerg”) In 2022, the Company is planning to drill approximately 10,000 metres (“m”) at Montclerg with a first phase of 3-4,000 m of drilling to start in February. Hole MTC-21-001, a 50 m step-out hole from historic drilling in 1986, has returned multiple bulk tonnage intercepts which include 1.56 grams of gold per tonne (“g/t Au”) over 27.5 m and 0.78 g/t Au over 40.5 m. Hole MTC-21-001 is the first hole to follow-up from the 1986 drilling and outlines stacked zones of vein-hosted and disseminated gold mineralization. In the Phase 1 program, the Company completed 11 holes focused on the MC Central target and three holes on the MC Eastern target; testing a strike length in excess of 500 m. Assay results are pending for the remaining holes and the Company expects to report these results throughout the first quarter.

Drill intercepts are historical and presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. True width is estimated to be 50 to 90% of drilled length.

In the fourth quarter of 2021, the Company drilled a total of 3,210 m from 14 holes in its inaugural Phase 1 drill program. The 14 holes varied in length from 125 to 400 m and tested a strike length of over 500 m. The program systematically tested the strike and dip-extensions of MC Central and MC East and the prospective MC Footwall zone (See Figure 2). The two broad zones of gold mineralization intersected in MTC-21-001 are typical of the mineralization encountered in historic drill holes at MC Central.

The upper zone occurs in massive to locally flow-banded and/or fragmental rhyolite that is moderately to intensely sericite and silica altered. Extensional quartz veins occur throughout the interval and typically comprise 5 to 25% of the rock. Pyrite and arsenopyrite occur throughout the altered host rock as fine-grained disseminations with contents ranging from trace amounts up to 10% at vein margins.

The lower zone occurs in massive, brecciated and tuffaceous rhyolite that is moderately to intensely sericite, silica and chlorite altered. Similar to the upper zone, extensional quartz veins are typically centimeter-scale with vein densities ranging from less than 1% and up to 30% of the rock. Finely disseminated pyrite and arsenopyrite occur throughout the zone with abundances ranging from trace amounts up to 5%.

The higher-grade core to the lower zone is marked by an increase in vein density and sulphide. The majority of the completed drill holes, for which assays are pending, have similar or more intense alteration, veining and sulphide to that seen in MTC-21-001 which, along with historical intercepts within the MC Central, East and West targets, is suggestive of a large gold system. Outlook: In 2022, the Company plans to complete 10,000 m of drilling on its Timmins portfolio with an emphasis on the Montclerg Gold Project.

In addition to the on-going drill program at Montclerg, the Company will continue additional exploration activities and target development across the Project. At the Pen Gold Project, the Company will continue to refine and develop drill targets during 2022 and is planning a sonic till drilling program in First Quarter 2022. At this time, the Company is reviewing various alternatives to advance the Dore Gold Project and will provide further information as it becomes available.

At the Rattlesnake Hills Gold Project, metallurgical test work remains on going with the Company's joint venture partner Group 11 Technologies Inc. (“Group 11”). The Rattlesnake Hills Gold Project provides a variety of mineralized settings that are ideal for the research Group 11 is conducting to apply In-Situ Recovery technology for the extraction of gold which could reduce the use of conventional mining methods. Initial metallurgical results from Group 11's Stage 1 program are pending and GFG anticipates being able to provide an update in the near future.

As the results become available, Group 11 will confirm next steps on conducting further laboratory testing and potential field work. Group 11's goal is to demonstrate that the non-cyanide, water-based solution along with In-Situ Recovery technology can effectively recover gold and be applied to the gold mining industry.