Pasofino Gold Announces the Start of Resource Upgrade Drilling on the Dugbe-F Gold Deposit and Results from Recent Field Exploration Work

Toronto, February 2, 2021 - Pasofino Gold Ltd. (TSXV: VEIN) (OTCQB: EFRGF) (FSE: N07) ("Pasofino" or the "Company") is pleased to announce that Hummingbird Resources (Liberia) Inc. has started its drilling program aimed at the upgrade and expansion of the Mineral Resources and has received encouraging surface exploration results on the Dugbe Project, in which Company has an option to earn a 49% economic interest (net of the Government of Liberia's carried interest). Two promising new targets have been identified through extensive soil sampling.

Highlights

• Drilling has commenced at the Dugbe F deposit targeting between 0.6 and 1 M Indicated ounces. 2 rigs are now drilling 'infill' holes within the existing Inferred Mineral Resource which hosts 820 k oz of gold. The Indicated Mineral Resource currently stands at 273 k oz.

• Drilling with a 3^rd and 4^th rig at the Tuzon Deposit is on track to commence in February 2021. The 10,000 m+ program at Tuzon is partly aimed at extending the deposit which is open to the south. Tuzon already hosts 2.03 M oz of gold in the Indicated category.

• 2,500 metre trenching program underway to test gold in soil anomalies on strike and around the Tuzon and Dugbe F deposits.

• Two new 'regional targets' identified from extensive new soil sampling; one at the Gmayenken area and one the Nemo Creek South area. Both are over 1 km in length and with up to 0.5 g/t (500 ppb) Au in soil.

Ian Stalker, CEO, commented; "As promised, we have hit the ground running and on schedule. We are exploring on multiple levels, from generating new greenfield targets, to testing extensions to the known deposits - we are confident that this strategy will deliver on our objectives to add significantly to the already large gold inventory."

Drilling at Dugbe F commenced, targeting a 0.6 to 1 Moz Indicated Mineral Resource

Drilling at the Dugbe F deposit commenced on the 21st of January 2021 with two rigs. A total of 5,000 metres is planned, aimed at converting a large portion of the current Inferred Mineral Resource to Indicated. The Inferred Mineral Resource is 16.3 Mt with an average grade of 1.57 g/t Au and contained gold of 820 k oz. The Indicated resource currently stands at 273 k oz. Drilling will focus on the areas within the current conceptual pit shell (Fig. 1). The gold is hosted by a flat to undulating mineralized layer which outcrops along the western side of the deposit and dips gently southeast to a maximum of 120 m below surface within the conceptual pit. Drilling at the southern end of the conceptual pit may result in some extension of the resource depending on the results from those holes.

Figure 1. 3D view of the conceptual pit at Dugbe F, looking East. The block model is shown within the pit.

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Drilling at Tuzon to test the southward extension

The final road bridge to allow access into the Tuzon deposit is nearing completion. Drilling is expected to commence in February to test the southward extension of 'zone B' of the deposit and to infill areas of the Inferred Mineral Resource. 8000 m of drilling has been allocated to this drilling. Zone B has an average grade of 1.7 g/t Au. The last two holes testing zone B were drilled in 2014; these were holes TDC082 and TDC084 which intersected 132 m grading 1.15 g/t Au and 50 m @2.0 g/t Au respectively (a true thickness of approximately 125 m and 46 m based on the current interpretation). The drilling will test the extension of this zone starting with holes 80 m then 160 m 'on strike' to the southwest. Depending on the results of these holes, additional holes will be added.

Figure 2. Long section through the Tuzon deposit showing the mineralized envelopes for Zones A and B and the possible extension of zone B.

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Trenching of Au in soil anomalies on strike and around the Tuzon and Dugbe F deposits

Trenching totaling approximately 2,500 m has commenced in the Tuzon-Dugbe F area to test gold in soil anomalies between 100 and 1000 ppb Au, most of which are on strike from the existing deposits (Fig. 3). For reference, the Au in soil 'above' the outcropping parts of the Tuzon and Dugbe F deposits is typically between 100 and 1000 ppb Au. The soil data in this area dates from between 2006 and 2014 but only one of these targets was tested (by trenching or drilling) previously. These soil anomalies may indicate extensions or 'satellite' mineralized areas close to the existing deposits either at surface or partially concealed. Results of these trenches are expected from early March 2021 onwards beginning with those at Tuzon SW and NE.

Figure 3. Au in Soil data for the Tuzon-Dugbe F area showing the existing deposit outlines and the targets to be trenched.

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New targets from extensive soil sampling

To define new targets, five new soil grids have been completed for a total of 3,256 soil samples. So far two 'new' Au in soil anomalies stand out; one at the Gmayenken area and one the Nemo Creek South area (Fig. 4). Both are over 1 km in length and have maximum Au in soil of 0.5 g/t (500 ppb). Trenching has been completed at Gmayenken, and infill soil sampling is planned at Nemo Creek South. At Gmayenken, artisanal miners are extracting gold from alluvial gravels along a 6 km long section of the drainage beginning approximately 1 km downstream of the soil anomaly - though there is no certainty that the source of the gold is at the soil anomaly, it is an encouraging observation.

Figure 4. Au in soil anomaly at Nemo Creek South.

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Soil sampling procedure and analyses

2006 to 2014 soil samples were collected according to a well-defined and implemented standard operating procedure. Samples were from a depth of 0.5 to 0.6 m. 1-2 kg of material was sent for analysis. Following sieving to -180 microns gold analyses were completed by fire assay at either ALS (Ghana), OMAC (Ireland), or SGS (Liberia). Lower detection limits were 5 or 10 ppb. Blanks, standards and field duplicate samples were inserted at a frequency of 1 in 20 samples. The recent soil analyses were also collected from 0.5 to 0.6 m. Analyses were carried out by ALS in Ouagadougou in Burkina Faso after preparation at their facility in Ivory Coast. Gold analyses were completed by fire assay and atomic absorption following sieving to -180 microns. Blanks, standards and field duplicates were inserted in intervals of 1 in 50, 1 in 100 and 1 in 50 samples respectively, and QAQC performance was found to be acceptable. Sample spacing for all soil samples varies from 200 by 40, to 300 by 80 metres.

Tiehnpo Exploration

Five of the planned nine holes were drilled at this target on the eastern part of the Project (Fig. 5) to follow-up on 2012 trench results. The remaining holes could not be accessed due to difficult terrain. Results of the five drill-holes were received; narrow intervals of mineralization are present but none are significant. Additional trenching and auger-hole drilling is underway at the target as a precursor to possible further core-drilling elsewhere at this large target. However, given the large number of targets on the Project, further drilling at Tiehnpo will be weighed against the need to test higher ranking areas that arise from the new soil sampling and trenching programs.

Figure 5. The Dugbe Project Area showing the location of the Tuzon and Dugbe F deposits and other areas referred in text.

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Qualified Persons Statement

Scientific or technical information in this disclosure that relates to exploration results was reviewed by Mr. Andrew Pedley. Mr. Pedley is a full-time consultant of Pasofino Gold Ltd. He is a member in good standing with the South African Council for Natural Scientific Professions (SACNASP) and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Mr. Pedley consents to the inclusion in this disclosure of the information, in the form and context in which it appears.

About the Dugbe Gold Project

The 2,559 km2 Dugbe Project is located in southern Liberia and situated within the south westmost part of the Birimian Supergroup, which is host to the majority of West African gold deposits. To date, two gold deposits have been identified on the Project; Dugbe F and Tuzon. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralization in the area. A large amount of exploration in the area was conducted by Hummingbird including 74,497 m of diamond coring. 70,700 m of this was at the Dugbe F and Tuzon deposits, discovered by Hummingbird in 2009 and 2011 respectively. Both deposits outcrop at surface and may be amenable to open-cut mining. Hummingbird engaged Wardell Armstrong International ("WAI") in 2013 to produce a Preliminary Economic Assessment ("PEA") for the Dugbe F and Tuzon deposits, and further work was carried out subsequently including metallurgical, geotechnical and hydrological work, which will provide a foundation for the recently initiated Feasibility Study. In addition, there are a number of prospects within the Project, including 'Sackor' where gold mineralization has been intersected in drill-holes and where additional drilling is planned. No other prospects have been drill-tested to date. At some prospects extensive trenching identified anomalous levels of gold that require drill-testing. An aggressive exploration program to test the prospects is planned by the Company. In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilization of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the Project. Over $70 million has been spent by Hummingbird on the Project.

Table 1. Mineral Resource Estimate for the Dugbe Gold Project using a 0.5 g/t Au cut-off grade

1. Rounding errors may be evident when combining totals in the table but are immaterial.
2. The effective date of the Mineral Resource Estimate is August 19, 2020 as reported in "Dugbe Gold Project, Liberia NI 43-101 Technical Report, Effective Date 19 August 2020," a report prepared by SRK Consulting (UK) Limited.
3. The Qualified Person is Mr. Martin Pittuck (CEng, MIMMM).
4. The Mineral Resource has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101).
5. The estimates are stated using a 0.5 g/t Au cut-off grade.
6. Mineral Resources are not Mineral Reserves and have no demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
7. Mineral Resource estimates are stated within conceptual pit shells that have been used to define Reasonable Prospects for Eventual Economic Extraction (RPEEE). The pit shells used the following main parameters: (i) Au price of US$1700/ounce; (ii) plant recovery of 90%; and (iii) mean specific gravity of 2.78 t/m3for fresh rock and 1.56 t/m3for oxide material for Tuzon, and for Dugbe F a mean specific gravity of 2.73t/m3.

About Pasofino Gold Ltd.

Pasofino Gold Ltd. is a Canadian-based mineral exploration company listed on the TSX-V (VEIN). Pasofino is earning a 50% interest in the advanced-stage Roger Gold-Copper Project located in Quebec's prolific Abitibi Greenstone Belt.

Through its recently announced acquisition of ARX Resources Limited, Pasofino has an option to earn a 49% economic interest (net of the Government of Liberia's carried interest) in the Dugbe Gold Project.

For further information, please visit www.pasofinogold.com or contact:

Ian Stalker, President & CEO

T: 604 367 8110
E: istalker@pasofinogold.com

Cautionary Statements Regarding Forward-Looking Statements

This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the ability to raise the funds to finance its ongoing business activities including the acquisition of mineral projects and the exploration and development of its projects. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the ability to successfully file and obtain approval for the Qualifying Prospectus, the ability to obtain all requisite regulatory approvals in respect of the Qualifying Prospectus, the results of exploration activities; the ability of the Company to complete further exploration activities; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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