The Company Begins Drilling and New Ground Geophysics Results Extend the Projected Vein Mineralization of Aurora-Quintanillo

TORONTO, Aug. 17, 2021 - O2Gold Inc. ("O2Gold" or the "Company") (TSXV: OTGO) is pleased to announce that it has begun drilling at the Aurora mine targets, the site of an expected 2,000 meters of drilling. The Company has also received the results of additional geophysics surveying in the Aurora project area.

Key Highlights

• The ground geophysics survey allowed the interpretation of the Quintanillo mine's vein structure of 1.2 km, which had already been identified in surface mapping but whose extent was unknown.
• In addition to showing the continuity of this vein, the survey also indicated the possibility of two more associated orthogonal vein structures and two structures that could be extensions of the Aurora vein system.
• The integration of the Aurora-Quintanillo target shows a projected vein system of almost 4 km in length along strike.
  

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 Quintanillo target identified occurrences beyond those known from the artisanal production works in the Quintanillo mine. 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, shown 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).

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Figure 1: (A) Spontaneous potential anomaly map and associated vein projections and (B) map of gold results in veins collected during mapping and their possible projections.

For the Quintanillo target area, 1,000 meters of scout drilling is planned to verify the extension, depth, thickness, and grade of gold of the vein system.

The geoelectric results for the Aparecida target area, which is 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") lab 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.

Stock Options Grant

Subject to regulatory approval, the Company has granted 400,000 stock options of the Company to Mr. Alimohamed in accordance with the Company's stock option plan. The options vest immediately and may be exercised at a price of $0.24 per option for a period of five years from the date of grant. The options and underlying common shares of the Company are subject to a four month hold period in accordance with the policies of the TSX Venture Exchange.

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 Company's planned work and exploration activities at its properties, particularly the exploratory drilling, geological mapping and sampling at 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.

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