Altamira reports Updated and Expanded Resource Estimate for Cajueiro gold project, Brazil

Vancouver, October 10, 2019 - Altamira Gold Corp.'s (TSXV: ALTA) (FSE: T6UP) (OTC Pink: EQTRF), ("Altamira" or the "Company") is pleased to announce that it has received the results of the new resource estimate from Global Resource Engineering Ltd. ("GRE") for its advanced Cajueiro project in northern Mato Grosso state in western Brazil. Highlights are as follows:

• The 2019 Inferred resources represent a 83% increase in the total amount of contained ounces of gold and a 61% increase in the gold grade

• Inferred resources total 12,665,000t @ 1.26 g/t gold for a total of 515,000oz of gold of which 1,673,000t @ 1.12 g/t gold (for 60,000 oz) is weathered rock and 10,992,000t @ 1.29 g/t (for 455,000oz) is fresh rock

• The 2019 Indicated resources represent a 13.5% decrease in the total amount of contained ounces but also represent a 33% increase in grade

• Indicated resources total 5,661,000t @ 1.02 g/t gold for a total of 185,000 oz of gold of which 854,000t @ 0.92 g/t gold (for 25,000 oz) is weathered rock and 4,806,000t @ 1.04 g/t (for 160,000 oz) is fresh rock

• The 2019 resource estimate includes several deposits which are all open at depth and are confined to an area of 285 ha. The Cajueiro concession area is largely unexplored and totals 39,053 ha with numerous untested gold-in-soil anomalies

Altamira is pleased to announce the completion of a new NI 43-101 gold mineral resource estimate for five deposits at its Cajueiro Project, located in the state of Mato Grosso in northern Brazil.

Altamira's 2019 NI 43-101 Mineral Resource Estimate was completed by Global Resource Engineering Ltd. ("GRE"), and totals 5,661,000t @ 1.02 g/t gold for a total of 185,000 oz of gold (Indicated) and 12,665,000t @ 1.26 g/t gold for a total of 515,000oz of gold (Inferred) (Table 1). The resources reported here are confined to an area of approximately 285 ha whilst the total area comprising the Cajueiro concession area amounts to 39,053 ha.

Resource Estimate Assumptions and Parameters and Results

The resource estimate utilizes all exploration information to date which includes 13,390 m of diamond core drilling and 5,282 m of surface trenches. Higher grade mineralized structures trending approximately north-south and east-west were modeled along with disseminated mineralization surrounding the structures. A saprolite layer overlying the rhyolite base rocks, approximately 15 meters thick, was incorporated into the model using the trenching and drill hole intercepts.

Table 1. Resource table showing Indicated and Inferred resources by geological domain and weathered versus fresh rock

A capping analysis of the assays was performed, resulting in 5 domains being capped to values between 5 and 10 g/t gold. Capped assay intervals were then composited to 3 meters with subsequent variography completed for each mineralization domain to determine the primary directions of mineralization and extent of grade continuity.

Gold grade was estimated into a 5m x 5m x 5m (x,y,z) block model using inverse distance squared. The mineral resource statement is confined to a defined pit shell using the Lerchs Grossman algorithm to determine the economic limits for potential mineral extraction.

Constrained gold resources were determined using mining shapes based on a $1,500/oz gold price. Resources falling within the pits were reported above cut-off grades of 0.25 g/t Au. Recoveries were assumed to be 92% based on the metallurgical test work completed to date. Mining costs used were US$2.00/t for fresh rock, and US$1.50/t for saprolite; with US$12.00 per tonne of ore for processing. The pit slopes selected were 45° for saprolite and 55° for fresh rock. Measured densities were 1.8g/cm³ for the weathered rock and 2.6 g/cm³ for fresh rock.

The 2019 resource estimate is based on drill and trench data from nine separate deposits, several of which are contiguous. Microgranites and rhyolites host a set of Northeast (NE) and East-West (E-W) trending conjugate shear structures / veins exhibiting late brittle deformation. These were the primary structural controllers of hydrothermal alteration and associated gold mineralization and are in general higher grade. Gold and pyrite in the bedrock sulphide domain is contained within hydrothermal alteration envelopes of sericite-epidote-chlorite-quartz within and adjacent to the structures.

Comparison of 2019 and 2016 Resource Estimates

The 2019 Inferred resources represent an 83% increase in the total amount of contained ounces and also represent a 61% increase in grade. The 2019 Indicated resources represent a 13.5% decrease in the total amount of contained ounces but also represent a 33% increase in grade.

The original 2016 resource estimate completed by Gustavson and Associates was not pit constrained. The GRE estimate reported here was pit constrained and using hypothetical open pits with slope angles ranging from 45 to 55 degrees.

The cut-off grades employed by both estimates were the same at 0.25g/t gold. The Gustavson estimated was similarly capped at values between 5 g/t gold and 10g/t gold.

The Gustavson estimate of 2016 employed a gold price of US$1250 per oz compared with the GRE 2019 estimate of US$1500 per oz. Density assumptions were unchanged at 1.8g/cm³ for the weathered rock and 2.6 g/cm³ for fresh rock.

Michael Bennett, Altamira Gold's President and CEO, commented, "The updated resource estimate for our flagship Cajueiro project in Brazil represents an important milestone for the Company. This estimate has added significantly to the total number of ounces in the Inferred category and more importantly has significantly improved the grade of the total resources in both the Indicated and Inferred categories. The bulk of the Cajueiro concession area remains unexplored and we look forward to further increases in the resource base with future trenching and drilling."

Kevin Gunesch, P.E., a principal of GRE and Dr. Hamid Samari, QP-MMSA, senior geologist of GRE, both consultants to the Company as well as a Qualified Persons as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor it's Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Altamira Gold Corp.

The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 11 projects comprising approximately 300,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.

On Behalf of the Board of Directors,

ALTAMIRA GOLD CORP.

"Michael Bennett"

Michael Bennett
President & CEO

Tel: 604.676.5660
Toll-Free: 1-833-606-6271
info@altamiragold.com
www.altamiragold.com

Forward-Looking Statements

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/48660