Kalo Gold Confirms Presence of a Large Epithermal Gold System on the Vatu Aurum Gold Project

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICE

VANCOUVER, June 23, 2022 - Kalo Gold Corp. ("Kalo", "Kalo Gold" or the "Company") provides the results of a 992.5 meter ("m"), three-hole diamond drilling program completed within the Qiriyaga Hill Prospect on the 100% owned Vatu Aurum Gold Project (the "Project") located in the Republic of Fiji. The district scale Project covers 367 square kilometers ("km²") and hosts a minimum of seven volcanic arc related calderas ranging between 1 kilometer ("km") to 10 km in diameter (see figure 1) in a geological setting analogous to the alkaline related low sulphidation epithermal gold deposits of both the neighbouring Vatukoula and Tuvatu Gold Deposits.

Highlights:

• New diamond drill holes KGD-06 and KGD-07, drilled to test geophysical anomalies at the Qiriyaga Hill Prospect, both intersected pervasive argillic alteration. Argillic alteration can be found associated with epithermal gold veins. KGD-06 and KGD-07 have been presented in a geological model in figure 2 and are interpreted to have been drilled within the alteration envelope surrounding the Vuinubu Ridge Gold Deposit and high-grade epithermal gold mineralization of the Qiriyaga Hill Gold Deposit (see Table 1).
• Both KGD-06 and KGD-07 have outlined a large 3km by 1.5km argillic alteration zone that indicates the presence of a low sulphidation epithermal gold system.
• The Qiriyaga Hill and Vuinubu Ridge Gold Deposits sit within this argillic alteration zone and both gold deposits are open along strike and down dip.
• The Qiriyaga Hill Prospect sits on the boundary of the interpreted Qiriyaga Caldera (see Figure 1), in an analogous geological setting as the alkaline related low sulphidation epithermal Vatukoula Gold Deposit which has produced over 7 million ounces of gold since 1937.

Terry L. Tucker, P.Geo. CEO of the Kalo Gold stated "Alteration halos to the zones of gold ore, particularly in epithermal gold vein deposits, include a variety of temperature-sensitive clay minerals that help to indicate locations of paleo fluid flow which is essential to understand to make a gold discovery. Work to date has identified a large argillic alteration zone on the Qiriyaga Hill Prospect associated with high grade epithermal gold mineralization and related to a caldera margin. The presence of at least six other analogous caldera features of similar scale at the Qiriyaga Caldera, including that of the Wainikora Complex, Mouta and Coqeloa, has important indications for gold and present an excellent opportunity for the discovery of potentially economic low sulphidation epithermal gold deposits."

Detailed Results:

KGD-06, targeting a geophysical anomaly, was drilled 1000m southeast of the Qiriyaga Hill Gold Deposit and 500m southeast of the Vuinubu Ridge Gold Deposit, intersected pervasive and intensive argillic alteration which confirms the presence of a large epithermal gold system surrounding both the Qiriyaga Hill and Vuinubu Ridge Gold Deposits (see Figure 3). Both gold deposits are open along strike and down dip. No significant gold mineralization was encountered in the hole, however KGD-06 intersected both potassic and propylitic alteration suggesting that a porphyry is nearby, probably located to the west and below its location (see Figure 2 model). The alteration assemblage in the upper part (140m), dominated by chlorite-clay-quartz-albite and the presence of hydrothermal K-feldspar, implies that alteration is transitional between argillic and potassic. Interestingly, trace chalcocite was observed in pyrite in about one of the large amygdule infillings. The alteration in the lower part (250m) is transitional between propylitic and argillic. The alteration is characterized by the presence of fine-grained quartz, albite, patchy carbonate, chlorite and finely granular epidote, and with an overprint of fine grained, turbid clay (e.g., kaolinite).

KGD-07, also targeting a geophysical anomaly, was drilled 850m northeast of the Qiriyaga Hill Gold Deposit (see Figure 2 and 3). KGD-07 intersected massive limestone from 19m-115m, followed by polymictic breccia (PBX) down to the bottom of the hole (451m) with porphyritic basalt intersected between 289.1m-407.7m. Both the PBX and basalt are pervasively argillic altered (illite-kaolinite+chlorite-smectite) with trace epidote, local quartz-calcite veining and 1-2% pyrite disseminations. The veins are mostly dominated by fine grained, locally crustiform texture calcite, and one has infill chalcedonic quartz and rims of calcite and chalcedonic quartz. Traces of chalcopyrite are observed in some amygdule fillings and at altered plagioclase sites. While no significant gold and base metal values were encountered in the hole, it confirms the presence of pervasive alteration.

KGD-05 successfully confirmed the continuity of the structure hosting the Vuinubu Ridge Gold Deposit between two mineralized centers located 210m apart (see Figure 4). KGD-05 intersected two thick structures of 30m (from 120-150m) and 43.5m (from 150-193.5m) respectively, characterized by the presence of quartz-carbonate veinlets and 1-2% pyrite in argillized fiamme breccia host rock with minor gold mineralization.

Qiriyaga Hill Prospect Mineralization

Although KGD-06 and KGD-07 did not return significant gold values they did intersect wide zones of extensive argillic alteration typical of peripheral zones of epithermal gold systems. Along with surface geological mapping, see Figure 1, this information has provided important information to guide future exploration work on the Vatu Aurum Gold Project. Modelling of the Qiriyaga Hill Gold Deposit indicates there are a minimum of five high grade (see Table 1) parallel veins that have been modelled within this large argillic alteration zone. The Qiriyaga Hill Prospect has excellent potential for the discovery of additional gold mineralization and expansion of the existing Qiriyaga Hill and Vuinubu Ridge Gold Deposits, both of which are open along strike and down dip, and the discovery of new gold deposits within the defined and expanded argillic alteration zone.

Observations by Kalo in the field have focussed on geologic setting and structural controls, alteration mineralogy and textures, geophysical and geochemical anomalies which have been compiled and when combined with identification of the zones of paleo fluid flow, will help to identify ore targets. Future work could include processing of high-resolution satellite imagery, ground geophysics, trenching, geochemical sampling, geological and structural mapping and diamond drilling. The Company owns two diamond drill rigs and has maintained a qualified operating team in Fiji which will be important to ensure the continued advancement of the Project.

Table 1 - Selection of Qiriyaga Hill Gold Deposit High Grade Gold Intersections *Not true width

About Kalo Gold Corp.

Kalo Gold Corp., a gold exploration company, is focused on exploration for low sulphidation epithermal gold deposits of the Vatu Aurum Gold Project on the island of Vanua Levu (North Island) in the Republic of Fiji. Kalo holds a 100% interest in two Special Prospecting Licenses, covering 367 km². Historical exploration work includes 11,423 m of diamond drilling, concentrated on the Qiriyaga Hill and Vuinubu Ridge Gold Deposits and the identification of over fourteen priority epithermal gold exploration targets.

Both Viti Levu, (South Island), and Vanua Levu are on the prolific Pacific "Ring of Fire", a trend that has produced numerous large deposits, including Porgera, Lihir and Grasberg and on Viti Levu, the exceptional Vatukoula Gold Mine. The island of Viti Levu also hosts Namosi, with a published Proven and Probable Reserves of 1.3 billion tonnes at 0.37% Cu and 0.12 g/t Au (5.2M ounces Au and 4.9M tonnes Cu). Lion One Metals is developing its Tuvatu Project, with Indicated Resources of 1.00 million tonnes at 8.48 g/t Au (274,600 ounces Au), and Inferred Resources of 1.33 million tonnes at 9.0 g/t Au (384,000 ounces Au) reported at a 3.0 g/t Au lower cut-off. The Vatukoula Gold Mine has produced in excess of 7 million ounces since 1937.

Qualified Person

The technical disclosure in this news release has been approved by Terry L. Tucker, P.Geo. a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.

On behalf of the Board of Directors of Kalo Gold Corp.

Terry L. Tucker, P.Geo
President and Chief Executive Officer

and

Kevin Ma, CPA, CA
Executive Vice President, Capital Markets, and Director
For more information contact, please write to info@kalogoldcorp.com

Neither the TSX Venture 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 press release.

Forward Looking Statements Disclaimer

Certain statements in this release are forward-looking statements, which are statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to the timing for receipt of results from the Company's current exploration program, and the Company's plans for future exploration on the Project. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements, other than statements of historical fact, included in this release, including statements regarding the timing for receipt of results from the Company's current exploration program, and the Company's plans for future exploration on the Project, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to raise the necessary capital to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's filing statement dated February 9, 2021 and latest interim Management Discussion and Analysis filed with certain securities commissions in Canada.

The reader is cautioned that assumptions used in the preparation of any forward-looking statements herein may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect, and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

SOURCE: Kalo Gold Corp.