P2 Gold Provides Update on Gabbs Project

VANCOUVER, July 07, 2021 - P2 Gold Inc. ("P2" or the "Company") (TSX-V:PGLD) reports on activities underway at its wholly-owned gold-copper Gabbs Project located on the Walker-Lane Trend in Nevada.

Exploration Manager Appointed

Fred Brown, M.Sc. (Eng), RM-SME, P.Geo., has been appointed Exploration Manager for the Gabbs Project as well as for P2's projects in Oregon. Mr. Brown is a professional mining geologist with over 30 years' experience in mineral resource management, including open-pit and underground operations. He has worked on precious metal, base metal and diamond mining projects in eastern and southern Africa, Australia, Europe, Canada, South America and the United States. His experience includes operational management, feasibility studies, due diligence audits, mine evaluation, resource estimation and deposit modeling. Mr. Brown is one of the authors of 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.

Exploration Permit in Hand

The Bureau of Land Management has reviewed the Company's Notice to Conduct Exploration Activities on the Sullivan and Car Body Zones at the Gabbs Project and determined it to be complete. The Company has posted the required reclamation bond and is now in a position to commence drilling at the Sullivan and Car Body Zones.

The Company recently filed a separate Notice to Conduct Exploration Activities with the Bureau of Land Management for the Lucky Strike Zone and the northwest part of the Gabbs Project.

Phase One Drill Program Expanded

The Phase One Drill Program has been expanded to include 1,000 meters of diamond drilling in addition to the planned 8,000 meters of reverse circulation ("RC") drilling. A diamond drill is expected to mobilize to site in mid-July. In addition to analytical data, the diamond drilling will provide information to confirm the geological model for the Sullivan and Car Body zones and drill core for additional metallurgical test work.

The Company has entered into an agreement with a Nevada-based RC drill contractor for the 8,000-meter RC drill program. The contractor expects to mobilize a RC drill rig to site later this quarter.

Geophysics and Hyperspectral Study

A gradient induced polarization ("IP") geophysical survey has been completed over the Sullivan Zone to develop a signature profile of the known mineralization and to highlight potential extensions of the mineralization as the zone remains open. A gradient IP geophysical survey is especially well suited for defining near surface mineralization that can be exploited by open pit mining methods. The survey comprises 16-line kilometers covering an area measuring 1 kilometer by 1.5 kilometers. The results of the survey will be reported following analysis of the data.

From 1970 through 2011, exploration activities were carried out on the Gabbs Project by a number of operators. Historical geophysical work included regional gravity and magnetic surveys, a property scale ground magnetic survey and an orientation IP survey. This work showed that the Sullivan and Lucky Strike zones are associated with prominent magnetic highs, which become more subtle over the extension of the zones where the historical drilling indicates they are open at depth. Re-interpretation of the ground magnetic data has also identified two elliptical features which are potentially indicative of the deeper source for the surface mineralization.

In addition to the ground geophysics, a satellite hyperspectral alteration survey was completed over the Gabbs Project to assist regional mapping and potentially identify sources of known surface mineralization. As expected, both the Sullivan and Lucky Strike areas host a core of sericite alteration surrounded by chlorite/epidotes alteration. The alteration halo at Lucky Strike also has a very strong correlation with one of the elliptical magnetic features providing further evidence that this feature is potentially related to a deep intrusive source for the surface mineralization.

Sullivan Zone Metallurgical Program

The Sullivan Zone metallurgical test program is nearing completion, with results expected to be available for release within the next few weeks.

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

Qualified Persons

Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person, as defined by National Instrument 43-101, responsible for the Gabbs Project exploration program.

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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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.