K2 Gold Corporation announced exploration drill results from its 2023 Reverse Circulation drilling program at the Wels Project, located in west-central Yukon Territory 60km south of Newmont's Coffee gold deposit. These results demonstrate the presence of a mineralized system of significant size and scale at the Wels Project. K2's 2023 Wels exploration program consisted of the first drill holes at the Chai, Pekoe, and Saddle West target areas and confirms that all target areas host gold bearing structures.

At the Chai Zone, three holes were drilled in a NNE-SSW oriented fence with tip-to-tail coverage to cover broad surficial gold geochemical anomalism, and several previously identified geophysical anomalies. In the south of the zone, hole WRC23-007 drilled an interval of 0.827 g/t Au over 13.72m within a gabbroic intrusive immediately above the contact with quartzite to the south. In the northern portion of the zone hole WRC23-009 drilled broad intervals of low-grade gold entirely within quartzite.

Host rock does not appear to play a significant role in mineralization at this time. Two holes were completed at the Pekoe Zone, located 1.3km northwest of the Saddle area. The holes were widely spaced, situated 200m apart, and tested separate structures identified by K2's geophysical surveys.

Hole WRC23-011 intersected 0.411 g/t Au over 38.10m from 9.14 down hole within a structure that extends for more than 900m in a WNW-ESE orientation. Hole WRC23-010 tested a separate NW- SE trending geophysical feature and returned minor gold mineralization within both siltstone and quartzite, including 0.205 g/t Au over 7.62m from 160.02m down hole. The final hole of the 2023 program was drilled at the Saddle West target as a 100m step out west of known mineralization along the trend of the Saddle Main structure.

The hole intersected a zone returning 0.255 g/t Au over 16.76m from 106.68m down hole at the contact between quartzite and a mafic dyke. Unfortunately, the hole and a portion of the drill rods were lost in heavily altered dyke before reaching the planned target depth and the interpreted extension of the Saddle Main structure. Less than 40% of the Wels property has been explored by K2 to date, and only 4 target areas have been tested.

The results from the first drill tests of the Chai and Pekoe targets combined with the previously released results from the Saddle Zone successfully identified at least 12 new gold bearing structures and demonstrate the presence of a significant broad scale mineralized system at the Wels Project. With a limited number of drill holes at the Chai Zone, K2 successfully defined a broad zone of mineralization which exceeded expectations based on prior surface sampling. All mineralization observed to date is structurally controlled, with all rock types on the property proven to host gold.

The Saddle, Chai and Pekoe Zones host kilometre-scale gold-in-soil anomalies and corresponding geophysical anomalies which suggest through-going structures and warrant follow up drilling. All structures drilled to date remain open along strike and at depth. The Wels Project lies approximately 40km east of the community of Beaver Creek and 60km south of Newmont Goldcorp's Coffee deposit discovered by Kaminak Gold Corporation (formerly a Discovery Group company prior to its acquisition by Goldcorp-Newmont).

Both the Coffee project and the Wels project lie within the Tintina Gold Belt share similar characteristics and are host to structurally controlled gold mineralization within intrusive rocks exhibiting multiple trends of mineralization. The Wels land position consists of 350 contiguous quartz claims covering 7,200 hectares and lies within the traditional territory of White River First Nation.