Pucara Gold Ltd. Provides Corporate Update and Highlights 2021 Work Program

• Pucara's mission is to discover the next world class high sulphidation epithermal ("HSE") gold deposit in Peru;


• Pucara will concentrate the bulk of its 2021 activities on field and permitting work at the Pacaska Gold-Copper Project. When the rainy seaon has abated, Pucara will be following up on extending open geochemical anomalies as well as implementing trenching where feasible to refine drill targets. Drill permitting is underway in anticpation of starting a Phase I program;


• At the Keyla HSE Gold Project, Pucara plans to follow up numerous multi-element geochemical soil anomalies, particularly a 300 by 400 meter soil gold anomaly within an 8 kilometer hyrdothermal alteration zone, as it readies Keyla for permitting;


• Pucara estimates the Lourdes Gold Project has potential to host a +1 Moz Au deposit. A Phase II Lourdes drill program in the Cascada target area and to locate the inferred structural feeder will occur after evaluation of the Pacaska Phase I drill program;


• Now available: Roundtable Discussion between Steve Zuker (Pucara CEO & Director), Ken Balleweg (Pucara VP Exploration), and David Awram (Pucara Director & Sandstorm Senior EVP);


• Partner-funded work at Los Tambos (IAMGOLD), Capricho (Solaris Resources), and Paco Orco (Solaris Resources);


• C$5.2M treasury fully funds 2021 work programs.

Steve Zuker, CEO, "Pucara's mission is to discover the next world class high sulfidation epithermal deposit in Peru. While the Lourdes Gold Project did present as a potential world class deposit and the target concepts were confirmed by the drilling, gold was absent in the Jellopata target area. On the other hand, the Pacaska Gold-Copper Project alteration footprint is roughly three times the size of Lourdes with 3-5 g/t gold samples from outcrops with multi-stage hydrothermal breccias. We have C$5.2M in treasury and will focus the bulk of our 2021 work program on Pacaska and Phase I drill targets."

Ken Balleweg, VP Exploration, "The Pacaska Gold-Copper Project covers a massive area of hydrothermal alteration. Whereas the drill-tested portion of Lourdes was in the upper parts of a high sulfidation system, the erosional level at Pacaska appears to be lower in the system, within the gold zone, as evidenced by the five gold-bearing vuggy silica breccia centers identified within the primary drill target area. Our IP survey has identified resistivity anomalies extending to depth correlative with gold-bearing breccias, as well as a large broad chargeability anomaly suggestive of a porphyry copper system at depth."

A roundtable discussion on the 2021 exploration program between Steve Zuker (Pucara CEO & Director), Ken Balleweg (Pucara VP Exploration), and David Awram (Pucara Director & Sandstorm Senior EVP) is available for viewing on Pucara Gold's YouTube channel or by clicking on the image below.

Pacaska Gold-Copper Project

Originally staked in 2015, Pacaska is an HSE precious metals project with an apparent transition to a porphyry copper system at depth. The alteration system contains anomalous, outcropping concentrations of gold with values in rock of up to 3­-5 g/t and rock samples exceeding 1% copper. The discovery of the latter outcropping gold and copper values led to the doubling of the project area to 76 square kilometers in 2017-2019. As a size comparison, the total Pacaska alteration zone is roughly three times the size of Lourdes.

The Yanasora target on the western portion of the property contains five outcropping gold bearing breccia centers with potentially ore grade gold in rock samples (3-5 g/t gold), which have never been drilled. The areas between vuggy silica breccia centers are covered by colluvium and IP resistivity (fig. 1) suggests that breccia centers may connect at depth.

Regionally, the Pacaska project geology and exploration results to date indicate the potential for both gold and copper mineralization. Pucara's recent geophysical surveys (IP and Magnetics) points to an arcuate chargeability anomaly (fig. 2) indicating the possibility of a porphyry copper target towards the southeast portion of the concession.

Pacaska 2021 Work program

During 2021, Pucara will focus on field and permitting work at Pacaska. The existing soil geochemistry grid will be extended west, southward, and southeast where strongly anomalous gold and copper values were identified in the survey. Trenching and test pits are planned where feasible over the course of the field season to refine the drill targets. Permitting work at Pacaska began prior to the start of the COVID-19 pandemic and Pucara is currently finalizing its drill permit application (DIA). Pucara expects to submit the application to the Ministry of Energy and Mines during Q2. Pucara is working closely with the communities and the permitting authorities in anticipation of a Pacaska Phase I drill campaign.

Keyla Gold Project

The Keyla Gold Project is an early stage HSE gold target that lies on the southern end of the Lourdes-Apumayo trend. The project area consists of low relief topography with 8 kilometer strike length of advanced argillic and silicic alteration. Soil surveys have identified a strong presence of the HSE multi-element suite (mercury, arsenic, and antimony), including a large 300 by 400 meter gold soil anomaly.

Keyla 2021 Work program

During the 2021 field season, Pucara will sample rock outcrops and advance geological mapping of the alteration zone. Furthermore, Keyla is amenable to trenching and pitting. Pucara expects to advance Keyla towards drill-ready status and permitting in 2021.

Lourdes Gold Project

In January, Pucara reported the results of its first drilling program at the Lourdes Gold Project. The program tested a very large area (2,560 hectares) and drilled five of the nine identified targets. Thick intercepts of oxidized silicic alteration, starting from surface and extending to depths of more than 200 meters confirmed the target concept. Gold concentrations were generally disappointing but included three low-grade gold intercepts hosted in granular silica. Pucara interprets the gold zone as flat-lying and distal from the inferred structural feeder, which may contain higher-grade mineralization, similar to mineralization observed at the Apumayo Mine. The intercepted grades are being mined at the Apumayo gold mine, which lies 14 kilometers directly south of the Lourdes property. The open intercepts indicate the inferred structural source is to the west toward the Paccha Huayco-Cascada area.

Lourdes 2021 Work Program

Based on the Lourdes Phase I results, Lourdes still has the potential to host a +1Moz gold deposit. A Phase II drill program is planned to locate the inferred structural feeder. Given Pacaska prospectivity, follow up work at the Lourdes property will occur after evaluating a Pacaska Phase I drill program.

Optioned Projects

Pucara currently has three projects optioned to partners. Los Tambos is optioned to IAMGOLD Peru SA and is a fully permitted, HSE gold target covering 16,900 hectares located along trend southeast from Pacaska. IAMGOLD began drilling at the Los Tambos project in Q4 2020. IAMGOLD can earn up to 70% of the project by spending US$4M, producing at minimum a 1Moz gold equivalent resource and paying Pucara US$2 per gold equivalent ounce.

Both Capricho and Paco Orco were visited and selected from Pucara's portfolio by the late David Lowell and optioned by Lowell Copper SAC, a subsidiary of Solaris Resources Inc. Capricho is a porphyry copper target that covers an area of 3,678 hectares and lies within the prolific Peruvian porphyry copper belt. Capricho is directly on trend from three world class producing copper mines: Constancia (Hudbay), Tintaya (Glencore), and Las Bambas (MMG). Solaris can earn up to 75% of the Capricho project by executing work commitments and payments totalling US$20M, including a Pre-Feasibility Study (PFS). Paco Orco is a carbonate replacement type target (CRD) adjacent to the Sombrero copper assets (Fury Gold Mines Ltd.). Solaris can earn up to 75% of the Paco Orco project by executing work commitments and payments totalling US$16M, including a PFS.

If all optioned projects are carried out by our partners, Pucara will receive a total of US$43M in work commitments and US$3.45M in direct payments.

Los Tambos 2021 Work Program (Optioned to IAMGOLD)

In 2020, IAMGOLD completed drill permitting at Los Tambos. During the 2020 drilling season, IAMGOLD completed a total of three diamond drill holes, totaling 1,858 meters. In 2021, IAMGOLD plans to continue its exploration program and drill 2,500 meters.

Capricho and Paco Orco 2021 Work Program (Optioned to Solaris Resources)

Solaris Resources continues to deploy its social engagement strategy within the area of influence at the Capricho and Paco Orco projects. Solaris has achieved a well - established reputation in its CSR approach, as put into practise at its Warintza project in Ecuador. These programs and initiatives include capacity training for community members so that they can actively participate in the development of the projects.

About Pucara Gold

Pucara Gold is a well-financed junior exploration company focused on the discovery and advancement of economic precious metals deposits in resource-rich Peru. Pucara has a portfolio approach to project acquisition and controls nine precious and base metal projects, located in Peru. Pucara is advancing six projects while the remaining three are under option agreements with strategic partners. Pucara plans to grow through discoveries, strategic relationships, and grassroots exploration. For more information, please visit Pucara Gold's YouTube channel.

Cautionary Statements

Neither the TSX Venture Exchange nor its 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. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, the impact of the COVID-19 pandemic on the worldwide economy, continued availability of capital and financing, and general economic, market or business conditions and regulatory and administrative approvals, processes and filing requirements. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.

SOURCE Pucara Gold Ltd.