Tarachi Provides Update on Drilling Programs in Sonora, Mexico

(CSE: TRG)

VANCOUVER, April 27, 2021 - Tarachi Gold Corp. (CSE: TRG) (OTCQB: TRGGF) (Frankfurt: 4RZ) ("Tarachi" or the "Company") is pleased to provide an update for its ongoing drilling at its portfolio of projects in Mexico. The Company is actively drilling in Sonora at the Tarachi project in the Mulatos/La India Gold Belt, and at its 100% owned Magistral del Oro Gold Plant in Durango, Mexico. In Sonora, the Company continues to drill test the La Dura-Zaragoza Gold Trend and will commence a second phase of diamond drilling in May-June at the San Javier Concession gold-bearing breccia pipe. In Durango, Tarachi geologists are engaged at Magistral, overseeing an auger drilling program of the Magistral tailings deposit as part of the Ausenco Engineering preliminary economic assessment.

Past drilling at the La Dura mine area returned broad, high-grade intercepts such as 20.75 metres at 5.05 g/t Au and 20.1 metres of 4.54 g/t Au. Current drilling is stepping out from the known mineralization at La Dura and to the south, at the intersection of two mineralized structures. This target is less than four kilometres from Alamos Gold's Mulatos heap.

Tarachi President and CEO, Cameron Tymstra commented: "Tarachi is actively drilling in a prolific gold trend in Sonora, Mexico that includes both the Mulatos and La India mines. Last year we encountered broad, high-grade mineralization at La Dura, and we are excited for the upcoming results. We continue to make steady progress at our Tarachi exploration project and expect to receive the first batch of assays from this phase of drilling over the next few weeks. We then expect to receive assays on a more regular basis moving forward as we continue to drill at Jabali and later move up to the San Javier concession for a second phase of deeper diamond drilling targeting the mineralized breccia system we discovered last year."

La Dura - Zaragoza Drilling Program

The Company has completed three underground HQ diamond drill holes for a total of 383.3 metres within the historic underground La Dura Mine. The purpose of these holes is to test the eastern and southern extent of gold mineralization associated with fractured and highly silicified and quartz vein to micro-vein bearing, dacitic to rhyodacitic volcanics indicated in Figure #1. A total of 253 samples were selected and submitted in March for analysis. Assay results are still pending and are expected in the coming weeks. Upon completion of the underground drilling program, the Company immediately initiated a proposed five-hole, 660 metre surface reverse circulation program to test south of the La Dura mine along the La Dura- Zaragoza Trend (Figure #2). This trend between known gold occurrences and artisanal workings has not been previously drill tested. Of particular interest is where the north-east trending Baby Doll gold occurrence is interpreted to intercept the La Dura-Zaragoza Trend. To date, 487 of the proposed 660 metres program has been completed and 244 samples have been submitted for analysis, with assays still pending.

Figure 1 - Underground Drill Holes at La Dura

Figure 2 - Jabali Mineralized Gold Trend

San Javier Concession Breccia Pipes

From November to December 2020, diamond drilling at the San Javier Concession focused on areas with known gold mineralization from historic drill programs. The gold mineralization was previously thought to be concentrated along a low angle, west dipping shear zone mainly within monzo-diorites. Tarachi's Phase 1 drill program last year, discovered gold mineralization as reported on February 16, 2021, is more favourable along steeper structures as was found in holes SJA-20-005/006 which returned values of 11.9 g/t Au over 2.0m and 5.39 g/t Au over 5.6m, respectively. In both intercepts, the gold mineralization is situated along open brittle structures containing over 20 percent sulphides, mainly pyrite with minor quartz veining/veinlets. In both drill holes, a large breccia pipe feature occurred immediately west of these intercepts consisting of angular breccia fragments cemented with 20-30%, fine to coarse grained anhedral to euhedral pyrite. Tarachi geologists have determined the breccia environment to be shingle breccias indicating the drillholes tested only the upper and typically lower grade portion of the pipe.

Magistral del Oro

Upon completion of the Company's Magistral tailings drilling program as part of the Preliminary Economic Assessment study (PEA), Tarachi's senior geologists will commence a second phase of diamond drilling in May-June at the mineralized breccia pipe with four holes planned to depths of over 250 metres. Tarachi's breccia pipes occur along a known trend of gold bearing and previously mined breccia pipes occurring immediately to the south-west of San Javier.

Options

The Company has granted 1,200,000 options to directors, officers and consultants under the Company's stock option plan. The options have an exercise price of $0.27 and will vest immediately. They are exercisable for a period of five years from the date of the grant and are subject to the policies of the Canadian Securities Exchange.

Quality Assurance/Quality Control

Core samples were selected by a geologist and sawed in half. One half of the core remains in the core tray the other half is placed into a plastic bag. Sample tags were submitted into each bag before being sealed and stored at the campsite in a secure area and were later transported by company truck directly the Bureau Veritas Mineral Laboratories (BVM) in Hermosillo, Sonora, Mexico. At the laboratory, the samples were dried, crushed and pulverized with the pulps being sent airfreight for analysis to BVM in Vancouver, B.C. for 37-element ICP analysis after modified aqua regia digestion. Gold assays are done in Hermosillo by 50-gram fire assay with an atomic absorption spectroscopy finish.

Samples were checked using a 50-gram fire assay with a gravimetric finish for samples greater than 10ppm Au and 1Kg metallic fire assay with duplicate minus fraction analyzed. Both Hermosillo and Vancouver BVM facilities are ISO 9001 and ISO/IEC 17025 accredited. Laboratory control samples comprising certified reference samples, duplicates and blank samples were inserted by the laboratory into the sample stream and analyzed as part of the quality assurance/quality control protocol.

About Tarachi Gold

Tarachi Gold is a Canadian-listed junior gold exploration company focused on exploring and developing projects in Mexico. The Company's Tarachi project covers 3,708ha of highly prospective mineral concessions in the Sierra Madre gold belt of Sonora, Mexico in close proximity to Alamos Gold's Mulatos mine and Agnico Eagle's La India mine. Tarachi has also acquired the Magistral Mill and tailings project in Durango, Mexico. Magistral includes a 1,000 tpd mill and access to a tailings resource (non-compliant with NI 43-101) estimated to contain 1.3Mt at 2.05g/t Au which the Company expects to bring into production in 2022.

Qualified Person

Lorne Warner, P.Geo, VP Exploration and Director of the Company is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the completion of the PEA; future exploration programs, and the completion of drill holes; and receipt of assay results.

Forward-looking statements and forward-looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Tarachi, future growth potential for Tarachi and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Tarachi's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect Tarachi's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and Tarachi has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in Tarachi's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although Tarachi has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Tarachi does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

SOURCE Tarachi Gold Corp.