K2 Gold Corporation announced that a ground-based Magnetic and Very Low Frequency electromagnetic geophysical survey was successfully completed at its 100% owned Wels Project located in Yukon, Canada. The survey was designed to collect geophysical data over previously drilled mineralization at the Saddle Zone. In addition, the survey covered three high priority gold-in-soil and rock anomalies on the property to identify possible controlling structures in areas of extensive surficial cover.

A total of 60.73 line-km of ground was surveyed, with multiple VLF-EM anomalies successfully delineated including several previously unidentified trends with coincident rock and soil geochemical anomalism, an entirely new exploration target in the southwest of the property was also identified over the course of the survey. The 2022 Mag-VLF survey was designed to collect baseline data over the Company's previously drilled (2017) Saddle target, where WNW-trending structurally controlled gold mineralization is observed within faults in a granodiorite host, before collecting similar tightly spaced data over the Chai, Pekoe, and Gunpowder targets, which have never been drilled. The Mag-VLF survey methodology excels at identifying conductive bodies, structures, or geological contacts, with a strong response indicating an anomaly.

The survey method was chosen based on observed similarities in mineralization style between Wels and Newmont's Coffee Gold Project, where the Mag-VLF method has been previously employed with great success. Mineralization at both projects is controlled by high-angle structures with strong sericite alteration and common fault gouge, within resistive gneissic and granitic host rocks. The survey successfully identified prominent anomalies at all targets, including a significant WNW- trending anomaly located immediately north of the extent of K2's previous diamond drilling at the Saddle target.

The newly identified VLF anomaly has never been drill-tested and is coincident with significant gold-in-soil anomalism. VLF anomalies that may represent structures which control the distribution of surficial gold found at the Pekoe, Chai, Gunpowder, and a newly identified target area were also observed. Based on the encouraging results of the 2022 Mag-VLF survey, the Company intends to prepare and submit a Class 3 exploration permit for further advanced exploration at the Wels Project in the 2023 season.

The Company plans on completing additional surface work to prepare for a drill program to test targets identified by the 2022 Mag-VLF survey and previous exploration work. The Wels Project is located in Western Yukon, approximately 40km east of the community of Beaver Creek and 60km south of Newmont Goldcorp's 4Moz Coffee deposit, within the traditional territory of White River First Nation. The land position consists of 350 contiguous Quartz Claims covering 7,200 hectares.

Wels is underlain by metasedimentary and metavolcanic rocks of the White River Formation that have been intruded by a series of Triassic gabbroic sills and Cretaceous granitic plugs. This package has been cut by a series of WNW trending high-angle structures that host alteration and gold mineralization. Mineralization is noted in all rock types observed on the property to date and is associated with quartz veining, brecciation, and sericite alteration with anomalous As, Sb, and, locally, visible gold.

Four discrete mineralized trends are currently known, with only one trend drilled to date, delivering encouraging assay results of 2.37 g/t Au over 28.5m and 10.38 g/t Au over 6.0m. All mineralized trends remain open along strike and approximately 80% of the property is currently unexplored.