Ground Geophysical Survey Identifies Two New Vein Structures and Evidences the Potential Existence of New Vein Structures Defined by Surface Mapping

Key Highlights

• The ground geophysical survey allowed the interpretation of four systems of vein structures that had already been identified in surface mapping but whose extent was unknown.
• The methods used made it possible to trace one of Aurora's veins, a source of artisanal production in previous years, showing that it has a continuous structure in an extension of up to 700 meters along the strike.
• In addition to showing the continuity of this vein, the survey also indicated the possibility of two more parallel vein structures apparently with similar length. These two parallel vein structures are, at most, 100 meters from the central vein, with the easternmost vein at no more than 50 meters.
  

Methodology

The geoelectrical survey methodology was chosen because it is known to identify vein structures in the same geological context successfully. The methods are as follows:

• Spontaneous Potential (SP): measures the spontaneous polarization due to electrochemical reactions existing at the host rock vein interface.
• Electrical Resistivity Profiling (ERP): measures the lateral variations of resistivity, trying to delimit the sub-vertical veins by contrast with host rocks.
• Vertical Electrical Sounding (VES): measures the behavior of the resistivity distribution with depth, defining the thickness of the weathered rock and adjusting the frequency used in Electrical Resistivity Tomography.
• Electrical Resistivity Tomography (ERT): measures the lateral and vertical variations of contacts related to the vein system due to its low resistivity characteristics.

The grids used were perpendicular to the vein structures, with variable spacing between 100 and 200 meters and with measuring points every 20 meters.

Results

The geological mapping and sampling on the Aurora target identified occurrences beyond those known from the artisanal production works in Aurora. Due to the coverage by colluvial material and weathered rocks, these occurrences could not be followed in the field, hence the choice of geophysical methods to verify their continuity.

As shown in Figure 1A, the interpretation of spontaneous potential anomalies (zones of low resistivity in blue) allows drawing lines interpreted as veins, previously known only as points with gold occurrences. It was impossible to identify their continuity and extension in the field (Figure 1B).

https://www.globenewswire.com/NewsRoom/AttachmentNg/e22ffab0-67ca-455a-9602-ef803b047e9c
Figure 1: Spontaneous potential anomaly map and associated vein projections (A), and map of gold results in veins collected during mapping and their possible projections (B).

For the specific area of Aurora's vein, in addition to the vein that was the target of production in previous years showing to be a continuous structure of about 700 meters along the strike, the results of the geophysical survey defined two more potential parallel vein structures, spaced between 50 and 100 meters from this main structure.

Forthcoming drilling will define the potential vein structures further, the results of which the Company expects to be an essential addition of resources to the operations at the Aurora site. For this area, a detailed drill grid is being carried out to test the three parallel vein structures. For the other veins observed, scout drilling is scheduled to be planned to verify thickness and grades.

The geoelectric results of the Quintanillo and Aparecida targets, which are also scheduled to be drilled in 2021, are expected in the coming weeks.

Quality Assurance and Quality Control

All samples were shipped to the SGS Colombia S.A.S.'s ("SGS") laboratory facility in Medellin, Colombia, where they were prepared and analyzed. They were analyzed using SGS procedure FAA515 to gold (fire-assay on a 50-gram sample with AAS finish) and AAS12C to silver (multi-acid digestion with AAS finish). Over the limit gold was determined by SGS procedure FAG505 (using standard fire-assay on a 50-gram sample with a gravimetric finish).

In line with QAQC best practices, approximately 10% of a 78-sample batch are control samples (three Au-Ag standards: High/Medium/Low grades, two fine blanks, one project blank, and two field duplicates).

SGS is independent of O2Gold. The Company is not aware of any other factors that could materially affect the accuracy or reliability of the data referred to herein.

Qualified Person

The scientific and technical information contained herein has been reviewed and approved by Marcelo Albuquerque, MAIG, a "qualified person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

2021 AGM Results

On Monday, July 26, 2021, the Company held its annual and special meeting of shareholders ("AGM") in Toronto, Canada. The nominees listed in the management information circular (the "Circular"), which was mailed to O2Gold shareholders of record as of June 21, 2021, were elected to the board of directors of the Company to hold office until the next annual meeting of shareholders or until their successors are duly appointed or elected.

A total of 16,233,715 common shares were voted at the AGM, representing approximately 13.62% of the issued and outstanding common shares of the Company.

In addition, O2Gold shareholders received the audited consolidated financial statements of the Company for the year ended December 31, 2020 and approved all of the other resolutions detailed in the Circular and put forward at the AGM, namely:

• Re-appointing McGovern Hurley LLP as auditor of the Company for the ensuing year and authorizing the directors to fix the auditor's remuneration; and
• Re-approving the Company's stock option plan for the ensuing year, reserving for grant options to acquire up to a maximum of 10% of the issued and outstanding O2Gold common shares calculated at the time of each stock option grant.

The Circular is available under O2Gold's profile on SEDAR at www.sedar.com.

Board Appointment

The Company is also pleased to announce that Mr. Fayyaz Alimohamed has been appointed to the Company's board of directors, effective immediately.

Fayyaz Alimohamed is the Managing Partner of Zabina Capital, which invests in start-up and scale-up companies. He was the Director of Investments for a large investment/operating group based in Dubai. He was the founder and CEO of Altair Resources Inc. (previously, Altair Gold Inc.), a company that had defined a 1.9 million ounce gold deposit in British Columbia.¹ Mr. Alimohamed is a Chartered Professional Accountant and holds a B.Sc. (Hons.) degree in Economics from the London School of Economics.

About O2Gold

O2Gold is a mineral exploration company with activities in Colombia.

For additional information, please contact:

Jaime Lalinde, President and CEO
Phone: (57) 312 350 5864
Email: jlalinde@fmresources.ca

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the election and appointment of directors, the potential two new vein structures at the Aurora state, and the Company's planned work and exploration activities at its properties, particularly the geological mapping and sampling of the Aurora, Quintanillo and Aparecida sites. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

¹Link to Altair Resources Inc.'s 43-101