VANCOUVER, BC / ACCESSWIRE / March 17, 2022 / Element79 Gold Corp. (CSE:ELEM)(OTC PINK:ELMGF)(FSE:7YS) ("Element79 Gold", the "Company") is pleased to present further insight and analysis on its recently acquired high-grade Peruvian gold portfolios. In a news release dated March 10^th, 2022 (or the "Prior Release"), The Company announced it signed a Letter of Intent ("LOI") to acquire all of the issued and outstanding securities of Calipuy Resources Inc. ("Calipuy") and all of its assets and undertakings. Calipuy holds 100% interest in two past-producing high-grade gold-silver mines: The past-producing Lucero Mine ("Lucero"), one of the highest-grade underground mines in Peru's history⁽¹⁾ at grades averaging 19.0g/t Au Equivalent ("Au Eq") (14.0 g/t gold and 373 g/t silver)⁽²⁾, as well as the past-producing Machacala Mine ("Machacala") which averaged production grades of 10.5 g/t Au Eq (6.0 g/t gold and 340 g/t silver)⁽⁵⁾. Operations were suspended in 2005 at Lucero and 1991 at Machacala due to the persistence of low gold and silver prices at the time.

The purpose of this corporate update is to provide a comprehensive discussion and analysis on the strategic reasoning behind the acquisition of the Lucero and Machacala projects, and why Element79 Gold believes that the integration of this new portfolio will help elevate the Company amongst its junior resource exploration peers. Details of the LOI and NSR can be found in the Prior Release. The Prior Release additionally highlights material and technical details of the Lucero and Machacala properties, including a recent 43-101 report on Lucero compiled by Mining Plus.

Diversification of Element79 Gold

Having a portfolio of previously-producing assets that have the near-term potential to be brought back into production provides the Company with a pathway to revenue, which would fund day-to-day administration and offset future exploration and development plans. In completing this acquisition Element79 Gold would now have a well-diversified portfolio of assets including greenfield, advanced 43-101 resource stage, and historic high-grade past- producing mines that have the potential to become producers again in the near term. The cycle of self-reliance and cash flow generation will continue to elevate Element79 Gold to a premiere resource exploration company.

Unique Features of the Lucero and Machacala Past-Producing Mines

Formerly operated as the Shila mine from 1989 to 2005, Lucero consists of 10,805 hectares located in the Shila range of southern Peru, which contains several historic high grade gold-silver mines⁽¹⁾. Lucero consistently delivered high grades during 16 years of operations, and between 1998 and 2004 reported production averaging approximately 18,800 ounces of gold and 435,000 ounces of silver per year at grades of 19.0 g/t Au Eq (14.0 g/t gold and 373 g/t silver),⁽²⁾ with recoveries at the ore processing facility averaging 94.5% for gold and 85.5% for silver⁽¹⁾.

Infrastructure highlights for the past-producing Lucero Mine include three-phase electrical energy from the national grid that's available in the town of Chachas 40km from the property. Subject to permitting, surface water is available in streams and small lakes throughout the year. Structures endowed with precious metals have been exploited at Lucero and surrounding areas by artisanal and formal miners over many years. Mining activity targeting high-grade veins is thought to date back to the Inca period⁽²⁾.

"Lucero offers a rare opportunity to explore for not only an underground high-grade low sulphidation system but potentially an open pit-able high sulphidation system as well," commented Neil Pettigrew, M.Sc., P.Geo, Director of Element79 Gold. "This past-producing mine has never experienced modern exploration techniques and I am very confident that significant gold-silver resources are to be found."

The past-producing Machacala mine was first commercially mined in the 1950s before being acquired and operated by Minera Santa Isabel, S.A. from 1979 to 1991 which mined 230,000 metric tonnes averaging 10.5 g/t Au Eq (6.0 g/t Au and 340 g/t Ag) representing 78,000 Au Eq ounces.⁽⁶⁾ Operations were suspended in 1991 due to the persistence of a low gold ($360/oz) and silver ($3.81/oz) price.. Machacala hosts multiple low-sulphidation epithermal Au-Ag veins, of which only four have been only modestly exploited.⁽⁴⁾

In addition, Machacala includes 200,000 tonnes of historic, non-43-101 compliant tailings, which were estimated in 1997 by Gold Hawk to contain grades of 1.26 g/t gold and 74 g/t silver.⁽⁸⁾ Previous metallurgical studies by Gold Hawk show 87% recoveries of gold and 50%+ recovery of silver in 24 hours of leaching of un-milled tailings, with re-milling able to increase recoveries to 90% of gold and 73% of silver in 24 hours of leaching.⁽⁹⁾

ESG Initiatives

Element79 Gold is committed to the highest levels of corporate governance, and continues to make improvements towards social responsibilities. The Company believes it's their duty as a global company to be a pioneer in relation to their ESG policies. Over the past few decades, the resource exploration sector has been met with some well-warranted environmental and social criticisms. Our goal is to stop the stigmatization that all resource exploration companies are the same, and that the Company can actually do some "net good".

Examples of new initiatives is the onboarding of a community ambassador. This person will act as a liaison between the neighbouring communities that the Company will be operating in, and Element79 Gold. This individual will ensure that all local concerns are addressed, and that they will always feel like they have a voice at the table.

Another example will be the hiring of local geologists and operating companies. The purpose of this will be to not only stimulate the local economy and provide jobs for the communities, but to also consider their professional insights as these groups have a lifetime of knowledge to offer Element79 Gold areas that they're well-familiarized in.

Lastly the Company will look towards commencing philanthropic initiatives such as donating to clean drinking water and other giveback programs in late 2022. These programs will be designed to ensure that Element79 Gold is well integrated to the communities they'll be working beside.

All gold Equivalent calculations were performed using $1,650/oz gold, and $22/oz silver in line with the Company's Maverick Springs 43-101 resource estimate, (see news release January 31st, 2022).

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director of Element79 Gold and a "qualified person" as defined by National Instrument 43-101.

About Element79 Gold

Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent grading 0.92 Au Eq (0.34 g/t Au and 43.5 g/t Ag) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru's history, as well as the Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. For more information about the Company, please visit www.element79.gold or www.element79gold.com

Contact Information

For corporate matters, please contact:

James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com

For investor relations inquiries, please contact:

Investor Relations Department
Phone: +1 (604) 200-3608
E-mail: investors@element79gold.com

Cautionary Note Regarding Forward Looking Statements

This press contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".

Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company's other public disclosure documents, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

Sources

1. https://web.archive.org/web/20220308020414/https://condorresources.com/portfolio/lucero/
2. https://web.archive.org/web/20220308020532/https://www.sandstormgold.com/our-royalties/lucero/
3. https://web.archive.org/web/20220308020649/https://www.sec.gov/Archives/edgar/data/1397970/000118374013000409/f8k08162013ex99-2.htm
4. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
5. https://www.bnamericas.com/en/news/Gold_Hawk_Buys_Machala_Project
6. Gold Hawk Resources Inc News Release, 2004-04-26
7. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
8. Gold Hawk Resources Inc News Release, 2004-06-28
9. Affinity Gold Corp. Corporate Presentation March 2013.

SOURCE: Element79 Gold Corp.