Canadian Gold Corp. Hammond Reef South Surface Sample Returns 11.6 gpt Expanding New Gold Discovery & Provincial (Ontario) Funding Grant Awarded to Help Advance Exploration

Toronto, September 25, 2024 - Canadian Gold Corp. (TSXV: CGC) ("Canadian Gold" or the "Company") is pleased to announce an exploration update on the Hammond Reef South property, located near Atikokan, Ontario, and adjacent to Agnico Eagle's fully permitted Hammond Reef Project (Fig. 1). The Company also announces that it has been approved for the Ontario Junior Exploration Program ("OJEP") grant by the Ontario Ministry of Mines. The grant will provide funding for 50% of exploration expenditures, to a maximum of $200,000, incurred between April 2024 and February 2025 at the Hammond Reef South property.

The grant will allow Canadian Gold to advance its exploration activities at the highly prospective Hammond Reef South property. The property is located only 2 km from Agnico Eagle's fully permitted Hammond Reef Project, which contains a large mineral resource of more than 5 million ounces of gold and occurs in the same geological environment (Fig 1).

In August 2024, the Company reported the discovery of a new high-grade zone with surface samples returning 35.4 and 7.1 gpt gold within the northern part of the property (see news release August 6, 2024).

A follow-up program has since been completed to better evaluate the newly discovered high-grade gold mineralization. A stock work vein system was identified that has a minimum strike length of 80 metres with widths of up to 20 metres (Fig 2). The mineralization remains open along strike in both directions and returned samples from nil to 34.5 gpt gold. A channel sample across the zone returned 3.3 gpt gold over 1.05 metres including 6.42 gpt gold over 0.45 metres. New sampling 80 metres north of the original discovery, and before going under a swamp, returned 11.6 gpt gold from surface sampling.

This recent work has outlined a potential mineral system over a large 6.7 km gold trend that passes through the property (Fig 3). The Company is currently planning an induced polarization (IP) survey for late fall in order to identify areas of increased sulphide, which is strongly associated with the gold mineralization to outline exploration targets for further sampling and drill hole targeting. The project's exploration permit was approved in July and allows for drilling, trenching and ground geophysical work.

"We are grateful to the Ministry of Mines and the Honourable George Pirie, Minister of Mines, for their continued support of Ontario's exploration sector through initiatives like OJEP," said Michael Swistun, President and CEO of Canadian Gold. "This funding allows us to advance our exploration efforts and enhances our ability to make meaningful discoveries."

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Qualified Person

The scientific and technical information disclosed in this news release was reviewed and approved by Wesley Whymark, P. Geo., Consulting Geologist for the Company, and a Qualified Person as defined under National Instrument 43-101.

About Canadian Gold Corp.

Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The historic Tartan Mine currently has a 2017 indicated mineral resource estimate of 240,000 oz gold (1,180,000 tonnes at 6.32 g/t gold) and an inferred estimate of 37,000 oz gold (240,000 tonnes at 4.89 g/t gold). The Company also holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 35% owned by Robert McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of the Company contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

Figure 1. Overview location of the Hammond Reef South property illustrating the location of Agnico Eagles Hammond Reef Deposit.

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Figure 2. Location of the new high-grade discovery on the Hammond Reef South property.

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Figure 3. Location of the Hammond Reef South property illustrating a large 6.7 km gold trend.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224492