Canagold Announces Additional High-Grade Gold Drill Intercepts from the C-10 and the C-West Main Veins at New Polaris Project, BC

The assay results include samples from recently completed drilling of additional intercepts of the C-10 vein (“C-10”) as well as the C-West Main vein (“CWM”):

Highlights:

21-1875E3W1

• 2 grams per tonne (“gpt”) gold (“Au”) over 2.9 meters (“m”) from 426.8 m (C-10)
• 99 gpt Au over 2.1 m from 633.6 m (CWM)

21-1844E4

• 10 gpt Au over 12.5 m from 549.3 m (C-10)
• 16 gpt Au over 1.9 m from 738.7 m (CWM)

21-1875E1

• 61 gpt Au over 2.9 m from 504.1 m (C-10)
• 81 gpt Au over 0.7 m from 569.9 m (CWM)

21-1875E2

• 62 gpt Au over 0.6 m from 491.1 m (C-10)
• 84 gpt Au over 1.5 m from 555.7 m (CWM)

21-1935E1

• 10 gpt Au over 1.5 m form 479.0 m (C-10)
• 37 gpt Au over 2.8 m from 523.0 m (CWM)

Scott Eldridge, CEO and Director, said, “We continue to receive robust assay results from approximately 30,000 meters of drilling we’ve conducted since May of last year.  This most recent batch of results is of particular interest as we’ve now expanded the C-10 vein by 500%. The C-10 does not contain any resources do date, but has delivered robust results consistently, thus increasing our confidence to increase the overall resource size at New Polaris. We still have multiple results pending on the C-10 to potentially see additional continuity at depth.”

Detailed information for the five drill holes including the sample gold assay results and mineralized intercepts with true widths calculated for the CWM are provided in Table 1 and Table 2 below.

These additional intercepts of the C-10 vein have expanded the size of the interpreted C-10 geological model by 500% since the last reported results. Drill holes 21-1875E2 and 21-1935E1 infilled the area to the east and down dip of the previously defined limits to the C-10 allowing for interpolation of the model to include mineralized intercepts from previously drilled holes including:

• 0 gpt Au over 5.1 m from 493.8 m in hole P95C40
• 15 gpt Au over 1.3 m from 494.3 m in hole P95C44

Four more drill holes completed during the program still have results pending that could extend the C-10 vein further.

All of the planned 47-holes of the originally proposed 24,000 m infill drill program were completed by the end of 2021 and assay results have been received for 37 holes. An additional 6,000 meters of drilling in 7 holes were completed in January and February 2022. The samples collected from the mineralized zone in all of those holes have been submitted to the ALS Geochemistry lab in Whitehorse, YT for gold analysis. Results from the remaining holes of the original infill program and those from the extended program will be released as they are received in the coming weeks.  Drilling has now been completed for the season prior to the spring thaw, as planned. Drilling equipment is being stored on site ready for the start of the next drilling campaign in the summer of 2022.

Infill Holes to Upgrade Inferred Resources to Indicated Resources

The current drill program is designed primarily to in-fill drill the Inferred Resources of the CWM vein system within the currently defined resources in the PEA*. The infill drill holes range in depth from 300 to 650 m and are designed to provide greater density of drill intercepts (20 – 25 m spacing) in areas of Inferred Resources between 150 and 600 m below surface. The improved drill density will be used to upgrade parts of the Inferred Resources to Indicated Resources for inclusion in a future feasibility study.

*The New Polaris resource is contained within a preliminary economic assessment (“PEA”) report which was prepared by Moose Mountain Technical Services in the format prescribed by NI43-101 Standards of Disclosure for Mineral Projects, and filed on Sedar April 18, 2019.

New Polaris Overview

Canagold’s flagship asset is the 100% owned New Polaris Gold Mine project located in northwestern British Columbia about 100 kilometers south of Atlin, BC and 60 kilometers northeast of Juneau, Alaska. The property consists of 61 contiguous Crown-granted mineral claims and one modified grid claim covering 850 hectares. New Polaris lies within the Taku River Tlingit First Nations traditional territory. Canagold is committed to providing employment and business opportunities that help support the local economies in the vicinity of its exploration projects.

The New Polaris gold deposit is an early Tertiary, mesothermal gold-bearing vein system occupying shear zones cross-cutting late Paleozoic andesitic volcanic rocks. It was mined by underground methods from 1938 to 1942, and again from 1946 to early 1951, producing approximately 245,000 oz gold from 740,000 tonnes of ore at an average grade of 10.3 gpt gold. Three main veins (“AB, C and Y”) were mined to a maximum depth of 150 m and have been traced by drilling for up to 1,000 m along strike and up to 800 m down dip, still open for expansion. The gold occurs dominantly in finely disseminated arsenopyrite within quartz-carbonate stock-work veins and altered wall-rocks. Individual mineralized zones extend up to 250 meters in length and 14 meters in width. Average widths more commonly range from 2 to 5 meters.

More information is attached.