Sierra Nevada Gold announced assay results from its recent drilling at the Colorback gold project in central Nevada, USA have been returned. SNX completed five reverse circulation (RC) holes for 378m at Colorback and results confirmed the presence of near-surface gold mineralisation, verifying historic drilling that outlined zones of near surface oxidised gold mineralisation. Colorback's historically defined zones of near-surface oxide gold mineralisation coincides with the interpreted intersection of the Cortez and Pipeline structural corridors.

SNX is very encouraged that the intersection of these key structural trends coincides with significant gold enrichment within the Upper Plate rocks. This relationship demonstrates the potential for these structures to either host or control the emplacement of Carlin style mineralisation at depth within more receptive Lower Plate host rocks, as is the case at the nearby Cortez Complex and Pipeline deposits. Colorback is located in the Battle Mountain Trend (BMT), which among others hosts the nearby giants, Pipeline deposit (20Moz gold), the Cortez Complex (15Moz gold) and Barrick's Goldrush and Fourmile discoveries (+15Moz gold and growing).

Located to the south of the Colorback project, the Robertson gold deposit was acquired by Barrick in 2017 for $15.75 Million plus 1-2.25% NSR. Robertson is expected to produce at least 250,000ozpa gold over a 10+ year mine life. Nevada Gold Mines (Barrick-Newmont JV) is developing Robertson as part of the single largest gold-producing complex in the world. The geological plan and sections below show the position of the reported RC holes in relation to previous drilling and geological interpretations.

Of note is the close association of gold mineralisation with the regional and through-going NW and NNE trending structures. Geological cross section 527660mE demonstrates this structural association with gold mineralisation that increases in both thickness and grade towards intersecting large NW and NNE trending structures. This structural intersection has controlled a generally flat-lying mineralised gold zone approximately 300m by 200m (Western Zone) that is open towards the downthrown "Eastern Zone" as seen in geological cross section 4467500mN.

SNX's continued exploration program will focus on defining drill targets within this fertile structural corridor where the gold carrying structures are interpreted to intersect the more favourable and receptive calcareous "Lower Plate lithologies" at depth, rocks that are host to the nearby giant gold deposits. The Colorback project is situated within the heart of the Battle Mountain Trend (BMT). The BMT is a remarkable gold province that hosts several world-class gold deposits with total production and reserves of more than 100Moz Au.

The giant Pipeline deposit (20Moz Au), Cortez Complex (15Moz Au) and Barrick's recent Goldrush and Fourmile discoveries (+15Moz Au and growing) are all within 25km of the Colorback project. Sierra Nevada's Colorback project displays several key similarities to the nearby world-class Carlin gold mines such as the Pipeline deposit and the Cortez Complex deposits. Importantly, controlling structures from these deposits transect and intersect within the Colorback project.

Through its data acquisition and exploration program, Sierra Nevada has identified large-scale fertile structures with the potential to host a significant Carlin style mineral system.