K2 Gold Corporation announced the results of its 2022 rock chip sampling program at K2's Si2 Gold Project, located 60 km northwest of Tonopah Nevada. Rock chip sampling outlines strong mercury anomalism across multiple alteration cells on the Si2 Property. Mercury in rock values are similar in tenor to those observed at AngloGold Ashanti's Silicon deposit, over a similar scale at surface.

High mercury values are coincident with observed NE-trending structural control. The best mercury values are found where strong steam-heated advanced argillic alteration overlies mapped and interpreted NE-trending structures. K2 believes these structures are priority drill targets.

Si2 hosts a large, 8 km2 steam heated alteration footprint interpreted to represent the upper levels of a buried gold-bearing epithermal system. The Company collected 308 rock samples over areas of strong advanced argillic alteration at the property to define potential fluid pathways indicative of a structurally controlled epithermal system at depth. Ninety-five samples of 308 returned mercury (Hg) values greater than 0.5 ppm over multiple large alteration cells identified by K2's alteration mapping.

In addition, a northeast trending fault structure hosting hydrothermal black pyrite-matrix breccia was found to host significant arsenic (As) and antimony (Sb) anomalism, suggesting the paleo water table was at present day surface in some locations and indicating that the boiling zone, or level of precious metal mineralization, may be relatively close to present-day surface. Prior to K2's acquisition of the Si2 Property, limited historic rock sampling had indicated the presence of strongly anomalous mercury at surface within areas of strong steam-heated, advanced argillic alteration. K2 completed a systematic rock chip sampling program over each alteration cell over a grid spaced approximately 50 x 50m, with the goal of identifying areas of strongest mercury geochemical response coincident with mapped or interpreted structure.

Based on historic results and the model of a preserved steam-heated alteration cell, no gold was expected at surface. Rock sampling results exceeded expectations, with significant mercury returned at all alteration cells. Strong results were returned from the southern rhyolite dome (AOI 1) a 1100 x 400m zone of advanced argillic alteration where 10 samples exceeded 8.23 ppm Hg, with peak results of 88.2 ppm Hg and >100 ppm Hg (overlimit).

Key target areas with anomalous mercury include: AOI 2, where residual and powdery silica are noted in a strong magnetic low interpreted as a fault; AOI 3, a 400 x 300m area of alteration located 1.3 km northeast of AOI 2 along the same fault structure with rock Hg values to 5.21 ppm; AOI 4, a prominent 600 x 30m east-northeast trending fault structure with rock Hg values including 25.9, 8.56, 7.82, and 5.72 ppm Hg; and AOI 5, a series of 300 x 300m exposed alteration cells with highlight rock Hg values of 58.4, 32, and 6.82 ppm Hg. Additional anomalism is observed at AOI 7 and 8 in the far west of the property, with a peak value of 2.96 ppm. In addition to strongly anomalous mercury, a zone of anomalous arsenic and antimony was identified at AOI 1.5. The target area hosts a prominent NE-trending, NW-dipping fault structure juxtaposing silicified dacite on the hanging wall with alunite-kaolinite-opal altered rhyolite on the footwall.

Within the footwall, black pyrite-matrix hydrothermal breccia has been identified, and returns strong arsenic (854 ppm As) and antimony (35 ppm Sb). The presence of a hydrothermal, sulphide-bearing breccia indicates that the AOI 1.5 fault structure was, at some point in time, below the paleo water table. K2 interprets the region as a fault corridor which acted as a conduit for metalliferous fluids at the top of the paleo water table, beneath the overlying steam-heated alteration.

This window beneath the top of the paleo water table suggests that the boiling zone and potential precious metal mineralization may not be far from present day surface. Following the completion of an orientation IP survey, the Company will construct a geologic model defining targets for a 2023 drill program. As the results of the IP and ELF surveys become available and are interpreted, they will be released to market.

K2 will proceed with preparing a Notice of Intent for submission to the Federal Bureau of Land Management (BLM) to support drilling activities.