P2 Gold Initiates Metallurgical Program at Gabbs Project; Phase One Drilling Planned for Third Quarter

VANCOUVER, June 08, 2021 - P2 Gold Inc. ("P2" or the "Company") (TSX-V:PGLD) reports it has initiated a metallurgical program for its gold-copper Gabbs Project, located on the Walker-Lane Trend in Nevada, and plans to undertake a drill program at Gabbs in the third quarter.

Sullivan Zone Metallurgical Program

Two 36-kilogram metallurgical samples have been collected from surface locations within the Sullivan Zone. Assay results from the two metallurgical samples have returned gold and copper values consistent with historic drilling by prior operators in this location. See Table 1 below for assay results.

Table 1: Sullivan Zone Composite Sample Results, June 2021 ⁽¹⁾

(1) Samples were submitted for preparation and analysis by Base Metallurgical Laboratories in Kamloops, BC. All samples were analyzed using multi-acid digestion with ICP finish for copper and fire assay with AA finish for gold.

For plan views of the 2021 metallurgical sampling locations please see Sullivan metallurgical sampling locations.

P2's initial metallurgical program will evaluate the recovery of copper and gold from oxide mineralization by (a) sequential leach using heap leach technology and (b) conventional milling using a combination of flotation and leaching.

Prior metallurgical test work at Gabbs focused on the recovery of oxide mineralization by both heap leaching and conventional milling. Depending on the method, historical metallurgical recoveries were reported to range from 70% to 85% for copper and 85% to 95% for gold. (For a summary of the work by prior operators, see P2's National Instrument 43-101 Technical Report Updated Mineral Resource Estimate of the Gabbs Gold-Copper Property dated January 13, 2021 and filed on www.sedar.com on March 11, 2021.) P2's metallurgical tests of the metallurgical samples will also evaluate the potential process options defined by previous operators.

P2's initial metallurgical program is focused on the oxide mineralization as the Inferred Mineral Resource for Gabbs assumes zero recovery of oxide copper mineralization. By confirming a viable option for recovery of copper from the oxide mineralization, the Company believes that oxide copper can be included in future estimates of the Mineral Resource. P2's initial metallurgical program is expected to be completed in the coming months and results will be reported when the program is completed.

Phase One Drilling

Historical drilling at Gabbs was generally less than 100 meters deep, penetrating only the upper half of the interpreted mineralization as the drilling was concentrated on the oxide mineralization. Also, depending on the historical operator and the metal of focus at the time, a significant percentage of drill hole samples were assayed for either copper or gold but not both metals. At the Sullivan Zone, historical drilling identified a near-surface, higher grade gold-copper layer measuring 30 meters to 50 meters in thickness, and 200 meters long on section. This higher grade layer was not domained for the 2021 Inferred Mineral Resource. As a result, P2 is planning an infill drill program to test the full thickness and lateral extent of the mineralization and determine geologic constraints, in order to redefine the existing Gabbs Project Mineral Resource.

The first phase of the infill drill program, which is planned to commence in the third quarter, will comprise approximately 8,000 meters of reverse circulation drilling focused mainly on the Sullivan Zone, the largest of the four zones identified to date on the Gabbs property. Gold-copper mineralization in the Sullivan Zone is hosted within what are interpreted to be sills associated with an alkaline gold/copper porphyry. Additionally, a drill program is being evaluated for the Car Body Zone, the smallest tonnage, highest-grading gold zone on the property where gold mineralization is interpreted to be low-sulphidation epithermal mineralization.

For select section views of the 2021 phase one drill program, please see Gabbs 2021 phase one drill program.

The Gabbs Project is comprised of 355 unpatented lode mining claims and one patented lode mining claim covering four known zones of mineralization and comprising approximately 2,800 hectares. Nevada Highway 361, Gabbs Pole Line Road and a powerline cross the Gabbs Project.

The Gabbs Project has an Inferred Mineral Resource of 1.84 million ounces of gold equivalent or 1.26 million ounces of gold and 422.3 million pounds of copper (73.1 million tonnes grading 0.54 g/t gold and 0.26% copper). The Gabbs Project oxide Inferred Mineral Resource Estimate is 610,000 ounces of gold (26.2 million tonnes grading 0.72 g/t gold and assumes zero recovery for copper).

For further details on the Gabbs Project please see www.p2gold.com/projects/nevada/gabbs.

Qualified Persons

The Mineral Resource Estimate was prepared by Eugene Puritch, P.Eng. and F.H. Brown, P.Geo. of P&E Mining Consultants Inc. of Brampton, Ontario, Independent Qualified Persons ("QP"), as defined by National Instrument 43-101. Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the QP responsible for the Gabbs Project exploration program.

Required Early Warning Report Disclosure

Under the Gabbs private placement that closed on May 14, 2021 and the flow-through private placement that closed on June 4, 2021, Ken McNaughton acquired five million units of the Company and 200,000 flow-through units of the company, respectively. Prior to the closing of the two private placements, Mr. McNaughton owned 4,100,000 common shares of the Company representing approximately 9.89% of the issued and outstanding voting securities of the Company on a non-diluted basis as at such time. Following the closing of the two private placements, Mr. McNaughton owns 9.3 million common shares of the Company representing approximately 15.7% of the issued and outstanding voting securities of the Company on a non-diluted basis. Mr. McNaughton acquired the common shares for investment purposes only and intends to review his holdings on a continuing basis and such holdings may be increased or decreased in the future.

A copy of the Early Warning Report may be found on www.SEDAR.com.

About P2 Gold Inc.

P2 is a mineral exploration and development company focused on advancing precious metals discoveries and acquisitions in the western United States and British Columbia.

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

Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, information with respect to the Company's expectations, strategies and plans for the Gabbs Project including the Company's planned expenditures and exploration activities.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's annual information form dated October 21, 2020 filed on SEDAR at www.sedar.com for a discussion of these risks.

The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.